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 Diplomatic representation: Ambassador Joaquim Rafael BRANCO; Chancery (temporary) at 801 Second Avenue, Suite 1504, New York, NY 10017; telephone (212) 697-4211; US—the US Ambassador in Gabon is accredited to Sao Tome and Principe on a nonresident basis and makes periodic visits to the islands

Flag: three horizontal bands of green (top), yellow (double width), and green with two black five-pointed stars placed side by side in the center of the yellow band and a red isosceles triangle based on the hoist side; uses the popular pan-African colors of Ethiopia

Economy

Overview: The economy has remained dependent on cocoa since the gained independence nearly 15 years ago. Since then, however, cocoa production has gradually deteriorated because of drought and mismanagement, so that by 1987 output had fallen to less than 50% of its former levels. As a result, a shortage of cocoa for export has created a serious balance-of-payments problem. Production of less important crops, such as coffee, copra, and palm kernels, has also declined. The value of imports generally exceeds that of exports by a ratio of 4 to 1. The emphasis on cocoa production at the expense of other food crops has meant that Sao Tome has to import 90% of food needs. It also has to import all fuels and most manufactured goods. Over the years, Sao Tome has been unable to service its external debt, which amounts to roughly 80% of export earnings. Considerable potential exists for development of a tourist industry, and the government has taken steps to expand facilities in recent years. The government also implemented a Five-Year Plan covering 1986-90 to restructure the economy and reschedule external debt service payments in cooperation with the International Development Association and Western lenders.

GDP: $37.9 million, per capita $340; real growth rate 1.8% (1986)

Inflation rate (consumer prices): 4.2% (1986)

Unemployment rate: NA%

Budget: revenues $19.2 million; expenditures $25.1 million, including capital expenditures of $19.9 million (1987)

Exports: $9.1 million (f.o.b., 1988 est.); commodities—cocoa 90%, copra, coffee, palm oil; partners—FRG, GDR, Netherlands, China

Imports: $17.3 million (c.i.f., 1988 est.); commodities—machinery and electrical equipment 59%, food products 32%, fuels 9%; partners—Portugal, GDR, Angola, China

External debt: $95 million (1988)

Industrial production: growth rate 7.1% (1986)

Electricity: 6,000 kW capacity; 12 million kWh produced, 100 kWh per capita (1989)

Industries: light construction, shirts, soap, beer, fisheries, shrimp processing

Agriculture: dominant sector of economy, primary source of exports; cash crops—cocoa (90%), coconuts, palm kernels, coffee; food products—bananas, papaya, beans, poultry, fish; not self-sufficient in food grain and meat

Aid: US commitments, including Ex-Im (FY70-87), $7 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-87), 41.9 million

Currency: dobra (plural—dobras); 1 dobra (Db) = 100 centimes

Exchange rates: dobras (Db) per US$1—122.48 (December 1988), 72.827 (1987), 36.993 (1986), 41.195 (1985)

Fiscal year: calendar year

Communications

Highways: 300 km (two-thirds are paved); roads on Principe are mostly unpaved and in need of repair

Ports: São Tomé, Santo Antonio

Civil air: 8 major transport aircraft

Airports: 2 total, 2 usable; 2 with permanent-surface runways 1,220-2,439 m Telecommunications: minimal system; 2,200 telephones; stations—1 AM, 2 FM, no TV; 1 Atlantic Ocean INTELSAT earth station

Defense Forces

Branches: Army, Navy

Military manpower: males 15-49, 27,805; 14,662 fit for military service

Defense expenditures: 1.6% of GDP (1980)   Saudi Arabia



Geography

Total area: 2,149,690 km²; land area: 2,149,690km²

Comparative area: slightly less than one-fourth the size of US

Land boundaries: 4,410 km total; Iraq 488 km, Iraq-Saudi Arabia Neutral Zone 198 km, Jordan 742 km, Kuwait 222 km, Oman 676 km, Qatar 40 km, UAE 586 km, PDRY 830 km, YAR 628 km

Coastline: 2,510 km

Maritime claims:
 * Contiguous zone: 18 nm
 * Continental shelf: not specific
 * Exclusive fishing zone: not specific
 * Territorial sea: 12 nm

Disputes: no defined boundaries with PDRY, UAE, and YAR; shares Neutral Zone with Iraq in July 1975, Iraq and Saudi Arabia signed an agreement to divide the zone between them, but the agreement must be ratified, however, before it becomes effective; Kuwaiti ownership of Qaruh and Umm al Maradim Islands is disputed by Saudi Arabia

Climate: harsh, dry desert with great extremes of temperature

Terrain: mostly uninhabited, sandy desert

Natural resources: crude oil, natural gas, iron ore, gold, copper

Land use: 1% arable land; NEGL% permanent crops; 39% meadows and pastures; 1% forest and woodland; 59% other; includes NEGL% irrigated

Environment: no perennial rivers or permanent water bodies; developing extensive coastal seawater desalination facilities; desertification

Note: extensive coastlines on Persian Gulf and Red Sea provide great leverage on shipping (especially crude oil) through Persian Gulf and Suez Canal 273