Chapter LXXI: Section 3: , Taipei, Taiwan, telephone: 886 (2) 2162-2000, FAX (6)

Egypt
The regularity and richness of the annual Nile River flood,
coupled with semi-isolation provided by deserts to the east and
west, allowed for the development of one of the world's great
civilizations. A unified kingdom arose circa 3200 B.C. and a series
of dynasties ruled in Egypt for the next three millennia. The last
native dynasty fell to the Persians in 341 B.C., who in turn were
replaced by the Greeks, Romans, and Byzantines. It was the Arabs who
introduced Islam and the Arabic language in the 7th century and who
ruled for the next six centuries. A local military caste, the
Mamluks took control about 1250 and continued to govern after the
conquest of Egypt by the Ottoman Turks in 1517. Following the
completion of the Suez Canal in 1869, Egypt became an important
world transportation hub, but also fell heavily into debt.
Ostensibly to protect its investments, Britain seized control of
Egypt's government in 1882, but nominal allegiance to the Ottoman
Empire continued until 1914. Partially independent from the UK in
1922, Egypt acquired full sovereignty following World War II. The
completion of the Aswan High Dam in 1971 and the resultant Lake
Nasser have altered the time-honored place of the Nile River in the
agriculture and ecology of Egypt. A rapidly growing population (the
largest in the Arab world), limited arable land, and dependence on
the Nile all continue to overtax resources and stress society. The
government has struggled to ready the economy for the new millennium
through economic reform and massive investment in communications and
physical infrastructure.

El Salvador
El Salvador achieved independence from Spain in 1821 and
from the Central American Federation in 1839. A 12-year civil war,
which cost about 75,000 lives, was brought to a close in 1992 when
the government and leftist rebels signed a treaty that provided for
military and political reforms.

Equatorial Guinea
Equatorial Guinea gained independence in 1968
after 190 years of Spanish rule. This tiny country, composed of a
mainland portion plus five inhabited islands, is one of the smallest
on the African continent. President OBIANG NGUEMA MBASOGO has ruled
the country for over two decades since seizing power from his uncle,
then President MACIAS, in a 1979 coup. Although nominally a
constitutional democracy since 1991, the 1996 and 2002 presidential
elections - as well as the 1999 legislative elections - were widely
seen as being flawed. The president controls most opposition parties
through the judicious use of patronage. Despite the country's
economic windfall from oil production resulting in a massive
increase in government revenue in recent years, there have been few
improvements in the country's living standards.

Eritrea
Eritrea was awarded to Ethiopia in 1952 as part of a
federation. Ethiopia's annexation of Eritrea as a province 10 years
later sparked a 30-year struggle for independence that ended in 1991
with Eritrean rebels defeating governmental forces; independence was
overwhelmingly approved in a 1993 referendum. A two-and-a-half-year
border war with Ethiopia that erupted in 1998 ended under UN
auspices on 12 December 2000. Eritrea currently hosts a UN
peacekeeping operation that is monitoring a 25 km-wide Temporary
Security Zone on the border with Ethiopia. An international
commission, organized to resolve the border dispute, posted its
findings in 2002 but final demarcation is on hold due to Ethiopian
objections.

Estonia
After centuries of Danish, Swedish, German, and Russian
rule, Estonia attained independence in 1918. Forcibly incorporated
into the USSR in 1940, it regained its freedom in 1991, with the
collapse of the Soviet Union. Since the last Russian troops left in
1994, Estonia has been free to promote economic and political ties
with Western Europe. It joined both NATO and the EU in the spring of
2004.

Ethiopia
Unique among African countries, the ancient Ethiopian
monarchy maintained its freedom from colonial rule, with the
exception of the 1936-41 Italian occupation during World War II. In
1974 a military junta, the Derg, deposed Emperor Haile SELASSIE (who
had ruled since 1930) and established a socialist state. Torn by
bloody coups, uprisings, wide-scale drought, and massive refugee
problems, the regime was finally toppled in 1991 by a coalition of
rebel forces, the Ethiopian People's Revolutionary Democratic Front
(EPRDF). A constitution was adopted in 1994 and Ethiopia's first
multiparty elections were held in 1995. A two and a half year border
war with Eritrea ended with a peace treaty on 12 December 2000.
Final demarcation of the boundary is currently on hold due to
Ethiopian objections to an international commission's finding
requiring it to surrender sensitive territory.

Europa Island
A French possession since 1897, the island is heavily
wooded; it is the site of a small military garrison that staffs a
weather station.

European Union
Following the two devastating World Wars of the first
half of the 20th century, a number of European leaders in the late
1940s became convinced that the only way to establish a lasting
peace was to unite the two chief belligerent nations - France and
Germany - both economically and politically. In 1950, the French
Foreign Minister Robert SCHUMAN proposed an eventual union of all
Europe, the first step of which would be the integration of the coal
and steel industries of Western Europe. The following year the
European Coal and Steel Community (ECSC) was set up when six
members, Belgium, France, West Germany, Italy, Luxembourg, and the
Netherlands, signed the Treaty of Paris. The ECSC was so successful
that within a few years the decision was made to integrate other
parts of the countries' economies. In 1957, the Treaties of Rome
created the European Economic Community (EEC) and the European
Atomic Energy Community (Euratom), and the six member states
undertook to eliminate trade barriers among themselves by forming a
common market. In 1967, the institutions of all three communities
were formally merged into the European Community (EC), creating a
single Commission, a single Council of Ministers, and the European
Parliament. Members of the European Parliament were initially
selected by national parliaments, but in 1979 the first direct
elections were undertaken and they have been held every five years
since. In 1973, the first enlargement of the EC took place with the
addition of Denmark, Ireland, and the United Kingdom. The 1980s saw
further membership expansion with Greece joining in 1981 and Spain
and Portugal in 1986. The 1992 Treaty of Maastricht laid the basis
for further forms of cooperation in foreign and defense policy, in
judicial and internal affairs, and in the creation of an economic
and monetary union - including a common currency. This further
integration created the European Union (EU). In 1995, Austria,
Finland, and Sweden joined the EU, raising the membership total to
15. A new currency, the euro, was launched in world money markets on
1 January 1999; it become the unit of exchange for all of the EU
states except the United Kingdom, Sweden, and Denmark. In 2002,
citizens of the 12 euro-area countries began using the euro
banknotes and coins. Ten new countries joined the EU in 2004 -
Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania,
Malta, Poland, Slovakia, and Slovenia - bringing the current
membership to 25. In order to ensure that the EU can continue to
function efficiently with an expanded membership, the 2003 Treaty of
Nice set forth rules streamlining the size and procedures of EU
institutions. An EU Constitutional Treaty, signed in Rome on 29
October 2004, gave member states two years to ratify the document
before it was scheduled to take effect on 1 November 2006. Referenda
held in France and the Netherlands in May-June 2005 that rejected
the constitution suspended the ratification effort. Despite the
expansion of membership and functions, "Eurosceptics" in various
countries have raised questions about the erosion of national
cultures and the imposition of a flood of regulations from the EU
capital in Brussels. Failure by all member states to ratify the
constitution or the inability of newcomer countries to meet euro
currency standards might force a loosening of some EU agreements and
perhaps lead to several levels of EU participation. These "tiers"
might eventually range from an "inner" core of politically
integrated countries to a looser "outer" economic association of
members.

Falkland Islands (Islas Malvinas)
Although first sighted by an
English navigator in 1592, the first landing (English) did not occur
until almost a century later in 1690, and the first settlement
(French) was not established until 1764. The colony was turned over
to Spain two years later and the islands have since been the subject
of a territorial dispute, first between Britain and Spain, then
between Britain and Argentina. The UK asserted its claim to the
islands by establishing a naval garrison there in 1833. Argentina
invaded the islands on 2 April 1982. The British responded with an
expeditionary force that landed seven weeks later and after fierce
fighting forced Argentine surrender on 14 June 1982.

Faroe Islands
The population of the Faroe Islands is largely
descended from Viking settlers who arrived in the 9th century. The
islands have been connected politically to Denmark since the 14th
century. A high degree of self-government was attained in 1948.

Fiji
Fiji became independent in 1970, after nearly a century as a
British colony. Democratic rule was interrupted by two military
coups in 1987, caused by concern over a government perceived as
dominated by the Indian community (descendants of contract laborers
brought to the islands by the British in the 19th century). A 1990
constitution favored native Melanesian control of Fiji, but led to
heavy Indian emigration; the population loss resulted in economic
difficulties, but ensured that Melanesians became the majority.
Amendments enacted in 1997 made the constitution more equitable.
Free and peaceful elections in 1999 resulted in a government led by
an Indo-Fijian, but a coup in May 2000 ushered in a prolonged period
of political turmoil. Parliamentary elections held in August 2001
provided Fiji with a democratically elected government and gave a
mandate to the government of Prime Minister Laisenia QARASE.

Finland
Finland was a province and then a grand duchy under Sweden
from the 12th to the 19th centuries and an autonomous grand duchy of
Russia after 1809. It won its complete independence in 1917. During
World War II, it was able to successfully defend its freedom and
resist invasions by the Soviet Union - albeit with some loss of
territory. In the subsequent half century, the Finns made a
remarkable transformation from a farm/forest economy to a
diversified modern industrial economy; per capita income is now on
par with Western Europe. As a member of the European Union, Finland
was the only Nordic state to join the euro system at its initiation
in January 1999.

France
Although ultimately a victor in World Wars I and II, France
suffered extensive losses in its empire, wealth, manpower, and rank
as a dominant nation-state. Nevertheless, France today is one of the
most modern countries in the world and is a leader among European
nations. Since 1958, it has constructed a presidential democracy
resistant to the instabilities experienced in earlier parliamentary
democracies. In recent years, its reconciliation and cooperation
with Germany have proved central to the economic integration of
Europe, including the introduction of a common exchange currency,
the euro, in January 1999. At present, France is at the forefront of
efforts to develop the EU's military capabilities to supplement
progress toward an EU foreign policy.

French Guiana
First settled by the French in 1604, French Guiana was
the site of notorious penal settlements until 1951. The European
Space Agency launches its communication satellites from Kourou.

French Polynesia
The French annexed various Polynesian island groups
during the 19th century. In September 1995, France stirred up
widespread protests by resuming nuclear testing on the Mururoa atoll
after a three-year moratorium. The tests were suspended in January
1996.

French Southern and Antarctic Lands
The Southern Lands consist of
two archipelagos, Iles Crozet and Iles Kerguelen, and two volcanic
islands, Ile Amsterdam and Ile Saint-Paul. They contain no permanent
inhabitants and are visited only by researchers studying the native
fauna. The Antarctic portion consists of "Adelie Land," a thin slice
of the Antarctic continent discovered and claimed by the French in
1840.

Gabon
Only two autocratic presidents have ruled Gabon since
independence from France in 1960. Gabon's current President, El Hadj
Omar BONGO Ondimba - one of the longest-serving heads of state in
the world - has dominated Gabon's political scene for almost four
decades. President BONGO introduced a nominal multiparty system and
a new constitution in the early 1990s. However, the low turnout and
allegations of electoral fraud during the most recent local
elections in 2002-03 have exposed the weaknesses of formal political
structures in Gabon. Presidential elections scheduled for 2005 are
unlikely to bring change since the opposition remains weak, divided,
and financially dependent on the current regime. Despite political
conditions, a small population, abundant natural resources, and
considerable foreign support have helped make Gabon one of the more
prosperous and stable African countries.

Gambia, The
The Gambia gained its independence from the UK in 1965;
it formed a short-lived federation of Senegambia with Senegal
between 1982 and 1989. In 1991 the two nations signed a friendship
and cooperation treaty. A military coup in 1994 overthrew the
president and banned political activity, but a 1996 constitution and
presidential elections, followed by parliamentary balloting in 1997,
completed a nominal return to civilian rule. The country undertook
another round of presidential and legislative elections in late 2001
and early 2002. Yahya A. J. J. JAMMEH, the leader of the coup, has
been elected president in all subsequent elections.

Gaza Strip
The Israel-PLO Declaration of Principles on Interim
Self-Government Arrangements (the DOP), signed in Washington on 13
September 1993, provided for a transitional period not exceeding
five years of Palestinian interim self-government in the Gaza Strip
and the West Bank. Under the DOP, Israel agreed to transfer certain
powers and responsibilities to the Palestinian Authority, which
includes the Palestinian Legislative Council elected in January
1996, as part of the interim self-governing arrangements in the West
Bank and Gaza Strip. A transfer of powers and responsibilities for
the Gaza Strip and Jericho took place pursuant to the Israel-PLO 4
May 1994 Cairo Agreement on the Gaza Strip and the Jericho Area and
in additional areas of the West Bank pursuant to the Israel-PLO 28
September 1995 Interim Agreement, the Israel-PLO 15 January 1997
Protocol Concerning Redeployment in Hebron, the Israel-PLO 23
October 1998 Wye River Memorandum, and the 4 September 1999 Sharm
el-Sheikh Agreement. The DOP provides that Israel will retain
responsibility during the transitional period for external and
internal security and for public order of settlements and Israeli
citizens. Direct negotiations to determine the permanent status of
Gaza and West Bank began in September 1999 after a three-year
hiatus, but were derailed by a second intifadah that broke out in
September 2000. The resulting widespread violence in the West Bank
and Gaza Strip, Israel's military response, and instability within
the Palestinian Authority continued to undermine progress toward a
permanent agreement. Following the death of longtime Palestinian
leader Yasir ARAFAT in November 2004, the election of his successor
Mahmud ABBAS in January 2005 brought about a turning point in the
conflict. In February 2005 the Israeli Government voted to disengage
from the Gaza Strip by dismantling all Israeli settlements and
removing all Israeli settlers. This process was completed in
September 2005. Nonetheless, Israel maintains offshore maritime
control as well as airspace control. The future political status of
the Gaza Strip has yet to be determined.

Georgia
The region of present-day Georgia contained the ancient
kingdoms of Colchis and Kartli-Iberia. The area came under Roman
influence in the first centuries AD and Christianity became the
state religion in the 330s. Domination by Persians, Arabs, and Turks
was followed by a Georgian golden age (11th to the 13th centuries)
that was cut short by the Mongol invasion of 1236. Subsequently, the
Ottoman and Persian empires competed for influence in the region.
Georgia was absorbed into the Russian Empire in the 19th century.
Independent for three years (1918-1921) following the Russian
revolution, it was forcibly incorporated into the USSR until the
Soviet Union dissolved in 1991. Despite myriad problems, some
progress on market reforms and democratization has been made since
then. An attempt by the government to manipulate legislative
elections in November 2003 touched off widespread protests that led
to the resignation of Eduard SHEVARDNADZE, president since 1995. New
elections in early 2004 swept Mikheil SAAKASHVILI into power along
with his National Movement Party.

Germany
As Europe's largest economy and most populous nation,
Germany remains a key member of the continent's economic, political,
and defense organizations. European power struggles immersed Germany
in two devastating World Wars in the first half of the 20th century
and left the country occupied by the victorious Allied powers of the
US, UK, France, and the Soviet Union in 1945. With the advent of the
Cold War, two German states were formed in 1949: the western Federal
Republic of Germany (FRG) and the eastern German Democratic Republic
(GDR). The democratic FRG embedded itself in key Western economic
and security organizations, the EC, which became the EU, and NATO,
while the Communist GDR was on the front line of the Soviet-led
Warsaw Pact. The decline of the USSR and the end of the Cold War
allowed for German unification in 1990. Since then, Germany has
expended considerable funds to bring Eastern productivity and wages
up to Western standards. In January 1999, Germany and 10 other EU
countries introduced a common European exchange currency, the euro.

Ghana
Formed from the merger of the British colony of the Gold Coast
and the Togoland trust territory, Ghana in 1957 became the first
sub-Saharan country in colonial Africa to gain its independence. A
long series of coups resulted in the suspension of the constitution
in 1981 and a ban on political parties. A new constitution,
restoring multiparty politics, was approved in 1992. Lt. Jerry
RAWLINGS, head of state since 1981, won presidential elections in
1992 and 1996, but was constitutionally prevented from running for a
third term in 2000. John KUFUOR, who defeated former Vice President
Atta MILLS in a free and fair election, succeeded him.

Gibraltar
Strategically important, Gibraltar was ceded to Great
Britain by Spain in the 1713 Treaty of Utrecht; the British garrison
was formally declared a colony in 1830. In referendums held in 1967
and 2002, Gibraltarians ignored Spanish pressure and voted
overwhelmingly to remain a British dependency.

Glorioso Islands
A French possession since 1892, the Glorioso
Islands are composed of two lushly vegetated coral islands (Ile
Glorieuse and Ile du Lys) and three rock islets. A military garrison
operates a weather and radio station on Ile Glorieuse.

Greece
Greece achieved its independence from the Ottoman Empire in
1829. During the second half of the 19th century and the first half
of the 20th century, it gradually added neighboring islands and
territories, most with Greek-speaking populations. In World War II,
Greece was first invaded by Italy (1940) and subsequently occupied
by Germany (1941-44); fighting endured in a protracted civil war
between royalist supporters of the king and communist rebels.
Following the latter's defeat in 1949, Greece was able to join NATO
in 1952. A military dictatorship, which in 1967 suspended many
political liberties and forced the king to flee the country, lasted
seven years. The 1974 democratic elections and a referendum created
a parliamentary republic and abolished the monarchy. Greece joined
the European Community or EC in 1981 (which became the EU in 1992);
it became the 12th member of the euro zone in 2001.

Greenland
The world's largest island, Greenland is about 81%
ice-capped. Vikings reached the island in the 10th century from
Iceland; Danish colonization began in the 18th century and Greenland
was made an integral part of Denmark in 1953. It joined the European
Community (now the European Union) with Denmark in 1973 but withdrew
in 1985 over a dispute over stringent fishing quotas. Greenland was
granted self-government in 1979 by the Danish parliament. The law
went into effect the following year. Denmark continues to exercise
control of Greenland's foreign affairs.

Grenada
One of the smallest independent countries in the western
hemisphere, Grenada was seized by a Marxist military council on 19
October 1983. Six days later the island was invaded by US forces and
those of six other Caribbean nations, which quickly captured the
ringleaders and their hundreds of Cuban advisers. Free elections
were reinstituted the following year.

Guadeloupe
Guadeloupe has been a French possession since 1635. The
island of Saint Martin is shared with the Netherlands; its southern
portion is named Sint Maarten and is part of the Netherlands
Antilles and its northern portion is named Saint-Martin and is part
of Guadeloupe

Guam
Guam was ceded to the US by Spain in 1898. Captured by the
Japanese in 1941, it was retaken by the US three years later. The
military installation on the island is one of the most strategically
important US bases in the Pacific.

Guatemala
The Maya civilization flourished in Guatemala and
surrounding regions during the first millennium A.D. After almost
three centuries as a Spanish colony, Guatemala won its independence
in 1821. During the second half of the 20th century, it experienced
a variety of military and civilian governments as well as a 36-year
guerrilla war. In 1996, the government signed a peace agreement
formally ending the conflict, which had left more than 100,000
people dead and had created some 1 million refugees.

Guernsey
The island of Guernsey and the other Channel Islands
represent the last remnants of the medieval Dukedom of Normandy,
which held sway in both France and England. The islands were the
only British soil occupied by German troops in World War II.

Guinea
Guinea has had only two presidents since gaining its
independence from France in 1958. Lansana CONTE came to power in
1984, when the military seized the government after the death of the
first president, Sekou TOURE. Guinea did not hold democratic
elections until 1993 when Gen. CONTE (head of the military
government) was elected president of the civilian government. He was
reelected in 1998 and again in 2003. Unrest in Sierra Leone and
Liberia has spilled over into Guinea on several occasions over the
past decade, threatening stability and creating humanitarian
emergencies.

Guinea-Bissau
Since independence from Portugal in 1974,
Guinea-Bissau has experienced considerable upheaval. The founding
government consisted of a single party system and command economy.
In 1980, a military coup established Joao VIEIRA as president and a
path to a market economy and multiparty system was implemented. A
number of coup attempts through the 1980s and early 1990s failed to
unseat him and in 1994 he was elected president in the country's
first free elections. A military coup attempt and civil war in 1998
eventually led to VIEIRA's ouster in 1999. In February 2000, an
interim government turned over power when opposition leader Kumba
YALA took office following two rounds of transparent presidential
elections. YALA was ousted in a bloodless coup in September 2003,
and Henrique ROSA was sworn in as President. Guinea-Bissau's
transition back to democracy will be complicated by its crippled
economy, devastated in the civil war.

Guyana
Originally a Dutch colony in the 17th century, by 1815 Guyana
had become a British possession. The abolition of slavery led to
black settlement of urban areas and the importation of indentured
servants from India to work the sugar plantations. This
ethnocultural divide has persisted and has led to turbulent
politics. Guyana achieved independence from the UK in 1966, but
until the early 1990s it was ruled mostly by socialist-oriented
governments. In 1992, Cheddi JAGAN was elected president, in what is
considered the country's first free and fair election since
independence. Upon his death five years later, he was succeeded by
his wife Janet, who resigned in 1999 due to poor health. Her
successor, Bharrat JAGDEO, was reelected in 2001.

Haiti
The native Arawak Amerindians - who inhabited the island of
Hispaniola when it was discovered by Columbus in 1492 - were
virtually annihilated by Spanish settlers within 25 years. In the
early 17th century, the French established a presence on Hispaniola,
and in 1697, Spain ceded to the French the western third of the
island - Haiti. The French colony, based on forestry and
sugar-related industries, became one of the wealthiest in the
Caribbean, but only through the heavy importation of African slaves
and considerable environmental degradation. In the late 18th
century, Haiti's nearly half million slaves revolted under Toussaint
L'OUVERTURE and after a prolonged struggle, became the first black
republic to declare its independence in 1804. Haiti has been plagued
by political violence for most of its history. It is the poorest
country in the Western Hemisphere.

Heard Island and McDonald Islands
These uninhabited, barren,
sub-Antarctic islands were transferred from the UK to Australia in
1947. Populated by large numbers of seal and bird species, the
islands have been designated a nature preserve.

Holy See (Vatican City)
Popes in their secular role ruled portions
of the Italian peninsula for more than a thousand years until the
mid 19th century, when many of the Papal States were seized by the
newly united Kingdom of Italy. In 1870, the pope's holdings were
further circumscribed when Rome itself was annexed. Disputes between
a series of "prisoner" popes and Italy were resolved in 1929 by
three Lateran Treaties, which established the independent state of
Vatican City and granted Roman Catholicism special status in Italy.
In 1984, a concordat between the Holy See and Italy modified certain
of the earlier treaty provisions, including the primacy of Roman
Catholicism as the Italian state religion. Present concerns of the
Holy See include religious freedom, international development, the
Middle East, terrorism, interreligious dialogue and reconciliation,
and the application of church doctrine in an era of rapid change and
globalization. About 1 billion people worldwide profess the Catholic
faith.

Honduras
Once part of Spain's vast empire in the New World, Honduras
became an independent nation in 1821. After two and a half decades
of mostly military rule, a freely elected civilian government came
to power in 1982. During the 1980s, Honduras proved a haven for
anti-Sandinista contras fighting the Marxist Nicaraguan Government
and an ally to Salvadoran Government forces fighting leftist
guerrillas. The country was devastated by Hurricane Mitch in 1998,
which killed about 5,600 people and caused approximately $2 billion
in damage.

Hong Kong
Occupied by the UK in 1841, Hong Kong was formally ceded
by China the following year; various adjacent lands were added later
in the 19th century. Pursuant to an agreement signed by China and
the UK on 19 December 1984, Hong Kong became the Hong Kong Special
Administrative Region (SAR) of China on 1 July 1997. In this
agreement, China has promised that, under its "one country, two
systems" formula, China's socialist economic system will not be
imposed on Hong Kong and that Hong Kong will enjoy a high degree of
autonomy in all matters except foreign and defense affairs for the
next 50 years.

Howland Island
Discovered by the US early in the 19th century, the
island was officially claimed by the US in 1857. Both US and British
companies mined for guano until about 1890. Earhart Light is a day
beacon near the middle of the west coast that was partially
destroyed during World War II, but has since been rebuilt; it is
named in memory of the famed aviatrix Amelia EARHART. The island is
administered by the US Department of the Interior as a National
Wildlife Refuge.

Hungary
Hungary was part of the polyglot Austro-Hungarian Empire,
which collapsed during World War I. The country fell under Communist
rule following World War II. In 1956, a revolt and announced
withdrawal from the Warsaw Pact were met with a massive military
intervention by Moscow. Under the leadership of Janos KADAR in 1968,
Hungary began liberalizing its economy, introducing so-called
"Goulash Communism." Hungary held its first multiparty elections in
1990 and initiated a free market economy. It joined NATO in 1999 and
the EU in 2004.

Iceland
Settled by Norwegian and Celtic (Scottish and Irish)
immigrants during the late 9th and 10th centuries A.D., Iceland
boasts the world's oldest functioning legislative assembly, the
Althing, established in 930. Independent for over 300 years, Iceland
was subsequently ruled by Norway and Denmark. Fallout from the Askja
volcano of 1875 devastated the Icelandic economy and caused
widespread famine. Over the next quarter century, 20% of the
island's population emigrated, mostly to Canada and the US. Limited
home rule from Denmark was granted in 1874 and complete independence
attained in 1944. Literacy, longevity, income, and social cohesion
are first-rate by world standards.

India
The Indus Valley civilization, one of the oldest in the world,
dates back at least 5,000 years. Aryan tribes from the northwest
invaded about 1500 B.C.; their merger with the earlier Dravidian
inhabitants created the classical Indian culture. Arab incursions
starting in the 8th century and Turkish in the 12th were followed by
those of European traders, beginning in the late 15th century. By
the 19th century, Britain had assumed political control of virtually
all Indian lands. Indian armed forces in the British army played a
vital role in both World Wars. Nonviolent resistance to British
colonialism led by Mohandas GANDHI and Jawaharlal NEHRU brought
independence in 1947. The subcontinent was divided into the secular
state of India and the smaller Muslim state of Pakistan. A third war
between the two countries in 1971 resulted in East Pakistan becoming
the separate nation of Bangladesh. Despite impressive gains in
economic investment and output, India faces pressing problems such
as the ongoing dispute with Pakistan over Kashmir, massive
overpopulation, environmental degradation, extensive poverty, and
ethnic and religious strife.

Indian Ocean
The Indian Ocean is the third largest of the world's
five oceans (after the Pacific Ocean and Atlantic Ocean, but larger
than the Southern Ocean and Arctic Ocean). Four critically important
access waterways are the Suez Canal (Egypt), Bab el Mandeb
(Djibouti-Yemen), Strait of Hormuz (Iran-Oman), and Strait of
Malacca (Indonesia-Malaysia). The decision by the International
Hydrographic Organization in the spring of 2000 to delimit a fifth
ocean, the Southern Ocean, removed the portion of the Indian Ocean
south of 60 degrees south.

Indonesia
The Dutch began to colonize Indonesia in the early 17th
century; the islands were occupied by Japan from 1942 to 1945.
Indonesia declared its independence after Japan's surrender, but it
required four years of intermittent negotiations, recurring
hostilities, and UN mediation before the Netherlands agreed to
relinquish its colony. Indonesia is the world's largest archipelagic
state. Current issues include: alleviating widespread poverty,
preventing terrorism, continuing the transition to popularly-elected
governments after four decades of authoritarianism, implementing
reforms of the banking sector, addressing charges of cronyism and
corruption, and holding the military and police accountable for
human rights violations. Indonesia has been dealing with armed
separatist movements in Aceh and in Papua.

Iran
Known as Persia until 1935, Iran became an Islamic republic in
1979 after the ruling monarchy was overthrown and the shah was
forced into exile. Conservative clerical forces established a
theocratic system of government with ultimate political authority
nominally vested in a learned religious scholar. Iranian-US
relations have been strained since a group of Iranian students
seized the US Embassy in Tehran on 4 November 1979 and held it until
20 January 1981. During 1980-88, Iran fought a bloody, indecisive
war with Iraq that eventually expanded into the Persian Gulf and led
to clashes between US Navy and Iranian military forces between
1987-1988. Iran has been designated a state sponsor of terrorism for
its activities in Lebanon and elsewhere in the world and remains
subject to US economic sanctions and export controls because of its
continued involvement. Following the elections of a reformist
president and Majlis in the late 1990s, attempts to foster political
reform in response to popular dissatisfaction have floundered as
conservative politicians have prevented reform measures from being
enacted, increased repressive measures, and consolidated their
control over the government.

Iraq
Formerly part of the Ottoman Empire, Iraq was occupied by
Britain during the course of World War I; in 1920, it was declared a
League of Nations mandate under UK administration. In stages over
the next dozen years, Iraq attained its independence as a kingdom in
1932. A "republic" was proclaimed in 1958, but in actuality a series
of military strongmen ruled the country, the latest was SADDAM
Husayn. Territorial disputes with Iran led to an inconclusive and
costly eight-year war (1980-88). In August 1990, Iraq seized Kuwait,
but was expelled by US-led, UN coalition forces during the Gulf War
of January-February 1991. Following Kuwait's liberation, the UN
Security Council (UNSC) required Iraq to scrap all weapons of mass
destruction and long-range missiles and to allow UN verification
inspections. Continued Iraqi noncompliance with UNSC resolutions
over a period of 12 years resulted in the US-led invasion of Iraq in
March 2003 and the ouster of the SADDAM Husayn regime. Coalition
forces remain in Iraq, helping to restore degraded infrastructure
and facilitating the establishment of a freely elected government,
while simultaneously dealing with a robust insurgency. The Coalition
Provisional Authority transferred sovereignty to the Iraqi Interim
Government (IG) in June 2004. Iraqis voted on 30 January 2005 to
elect a 275-member Transitional National Assembly that will draft a
permanent constitution and pave the way for new national elections
at the end of 2005.

Ireland
Celtic tribes arrived on the island between 600-150 B.C.
Invasions by Norsemen that began in the late 8th century were
finally ended when King Brian BORU defeated the Danes in 1014.
English invasions began in the 12th century and set off more than
seven centuries of Anglo-Irish struggle marked by fierce rebellions
and harsh repressions. A failed 1916 Easter Monday Rebellion touched
off several years of guerrilla warfare that in 1921 resulted in
independence from the UK for 26 southern counties; six northern
(Ulster) counties remained part of the United Kingdom. In 1948
Ireland withdrew from the British Commonwealth; it joined the
European Community in 1973. Irish governments have sought the
peaceful unification of Ireland and have cooperated with Britain
against terrorist groups. A peace settlement for Northern Ireland,
known as the Good Friday Agreement and approved in 1998, is being
implemented with some difficulties.

Israel
Following World War II, the British withdrew from their
mandate of Palestine, and the UN partitioned the area into Arab and
Jewish states, an arrangement rejected by the Arabs. Subsequently,
the Israelis defeated the Arabs in a series of wars without ending
the deep tensions between the two sides. The territories occupied by
Israel since the 1967 war are not included in the Israel country
profile, unless otherwise noted. On 25 April 1982, Israel withdrew
from the Sinai pursuant to the 1979 Israel-Egypt Peace Treaty.
Israel and Palestinian officials signed on 13 September 1993 a
Declaration of Principles (also known as the "Oslo accords") guiding
an interim period of Palestinian self-rule. Outstanding territorial
and other disputes with Jordan were resolved in the 26 October 1994
Israel-Jordan Treaty of Peace. In addition, on 25 May 2000, Israel
withdrew unilaterally from southern Lebanon, which it had occupied
since 1982. In keeping with the framework established at the Madrid
Conference in October 1991, bilateral negotiations were conducted
between Israel and Palestinian representatives and Syria to achieve
a permanent settlement. On 24 June 2002, US President BUSH laid out
a "road map" for resolving the Israeli-Palestinian conflict, which
envisions a two-state solution. However, progress toward a permanent
status agreement has been undermined by Palestinian-Israeli violence
ongoing since September 2000. The conflict may have reached a
turning point with the election in January 2005 of Mahmud ABBAS as
the new Palestinian leader following the November 2004 death of
Yasir ARAFAT.

Italy
Italy became a nation-state in 1861 when the city-states of
the peninsula, along with Sardinia and Sicily, were united under
King Victor EMMANUEL II. An era of parliamentary government came to
a close in the early 1920s when Benito MUSSOLINI established a
Fascist dictatorship. His disastrous alliance with Nazi Germany led
to Italy's defeat in World War II. A democratic republic replaced
the monarchy in 1946 and economic revival followed. Italy was a
charter member of NATO and the European Economic Community (EEC). It
has been at the forefront of European economic and political
unification, joining the Economic and Monetary Union in 1999.
Persistent problems include illegal immigration, organized crime,
corruption, high unemployment, sluggish economic growth, and the low
incomes and technical standards of southern Italy compared with the
prosperous north.

Jamaica
Jamaica gained full independence within the British
Commonwealth in 1962. Deteriorating economic conditions during the
1970s led to recurrent violence and a drop off in tourism. Elections
in 1980 saw the democratic socialists voted out of office. Political
violence marred elections during the 1990s.

Jan Mayen
This desolate, mountainous island was named after a Dutch
whaling captain who indisputably discovered it in 1614 (earlier
claims are inconclusive). Visited only occasionally by seal hunters
and trappers over the following centuries, the island came under
Norwegian sovereignty in 1929. The long dormant Haakon VII
Toppen/Beerenberg volcano resumed activity in 1970; it is the
northernmost active volcano on earth.

Japan
In 1603, a Tokugawa shogunate (military dictatorship) ushered
in a long period of isolation from foreign influence in order to
secure its power. For 250 years this policy enabled Japan to enjoy
stability and a flowering of its indigenous culture. Following the
Treaty of Kanagawa with the United States in 1854, Japan opened its
ports and began to intensively modernize and industrialize. During
the late 19th and early 20th centuries, Japan became a regional
power that was able to defeat the forces of both China and Russia.
It occupied Korea, Formosa (Taiwan), and southern Sakhalin Island.
In 1933 Japan occupied Manchuria and in 1937 it launched a
full-scale invasion of China. Japan attacked US forces in 1941 -
triggering America's entry into World War II - and soon occupied
much of East and Southeast Asia. After its defeat in World War II,
Japan recovered to become an economic power and a staunch ally of
the US. While the emperor retains his throne as a symbol of national
unity, actual power rests in networks of powerful politicians,
bureaucrats, and business executives. The economy experienced a
major slowdown starting in the 1990s following three decades of
unprecedented growth, but Japan still remains a major economic
power, both in Asia and globally. In 2005, Japan began a two-year
term as a non-permanent member of the UN Security Council.

Jarvis Island
First discovered by the British in 1821, the
uninhabited island was annexed by the US in 1858, but abandoned in
1879 after tons of guano had been removed. The UK annexed the island
in 1889, but never carried out plans for further exploitation. The
US occupied and reclaimed the island in 1935. Abandoned after World
War II, the island is currently a National Wildlife Refuge
administered by the US Department of the Interior; a day beacon is
situated near the middle of the west coast.

Jersey
The island of Jersey and the other Channel Islands represent
the last remnants of the medieval Dukedom of Normandy that held sway
in both France and England. These islands were the only British soil
occupied by German troops in World War II.

Johnston Atoll
Both the US and the Kingdom of Hawaii annexed
Johnston Atoll in 1858, but it was the US that mined the guano
deposits until the late 1880s. Johnston and Sand Islands were
designated wildlife refuges in 1926. The US Navy took over the atoll
in 1934, and subsequently the US Air Force assumed control in 1948.
The site was used for high-altitude nuclear tests in the 1950s and
1960s, and until late in 2000 the atoll was maintained as a storage
and disposal site for chemical weapons. Munitions destruction is now
complete. Cleanup and closure of the facility was completed in 2004.

Jordan
For most of its history since independence from British
administration in 1946, Jordan was ruled by King HUSSEIN (1953-99).
A pragmatic ruler, he successfully navigated competing pressures
from the major powers (US, USSR, and UK), various Arab states,
Israel, and a large internal Palestinian population, despite several
wars and coup attempts. In 1989 he reinstituted parliamentary
elections and gradual political liberalization; in 1994 he signed a
formal peace treaty with Israel. King ABDALLAH II - the eldest son
of King HUSSEIN and Princess MUNA - assumed the throne following his
father's death in February 1999. Since then, he has consolidated his
power and undertaken an aggressive economic reform program. Jordan
acceded to the World Trade Organization in 2000, and began to
participate in the European Free Trade Association in 2001. After a
two-year delay, parliamentary and municipal elections took place in
the summer of 2003. The Prime Minister and government appointed in
April 2005 declared they would build upon the previous government's
achievements to respect political and human rights and improve
living standards.

Juan de Nova Island
Named after a famous 15th century Spanish
navigator and explorer, the island has been a French possession
since 1897. It has been exploited for its guano and phosphate.
Presently a small military garrison oversees a meteorological
station.

Kazakhstan
Native Kazakhs, a mix of Turkic and Mongol nomadic tribes
who migrated into the region in the 13th century, were rarely united
as a single nation. The area was conquered by Russia in the 18th
century and Kazakhstan became a Soviet Republic in 1936. During the
1950s and 1960s agricultural "Virgin Lands" program, Soviet citizens
were encouraged to help cultivate Kazakhstan's northern pastures.
This influx of immigrants (mostly Russians, but also some other
deported nationalities) skewed the ethnic mixture and enabled
non-Kazakhs to outnumber natives. Independence in 1991 caused many
of these newcomers to emigrate. Current issues include: developing a
cohesive national identity; expanding the development of the
country's vast energy resources and exporting them to world markets;
achieving a sustainable economic growth outside the oil, gas, and
mining sectors; and strengthening relations with neighboring states
and other foreign powers.

Kenya
Founding president and liberation struggle icon Jomo KENYATTA
led Kenya from independence until his death in 1978, when President
Daniel Toroitich arap MOI took power in a constitutional succession.
The country was a de facto one-party state from 1969 until 1982 when
the ruling Kenya African National Union (KANU) made itself the sole
legal party in Kenya. MOI acceded to internal and external pressure
for political liberalization in late 1991. The ethnically fractured
opposition failed to dislodge KANU from power in elections in 1992
and 1997, which were marred by violence and fraud, but are viewed as
having generally reflected the will of the Kenyan people. President
MOI stepped down in December of 2002 following fair and peaceful
elections. Mwai KIBAKI, running as the candidate of the multiethnic,
united opposition group, the National Rainbow Coalition, defeated
KANU candidate Uhuru KENYATTA and assumed the presidency following a
campaign centered on an anticorruption platform.

Kingman Reef
The US annexed the reef in 1922. Its sheltered lagoon
served as a way station for flying boats on Hawaii-to-American Samoa
flights during the late 1930s. There are no terrestrial plants on
the reef, which is frequently awash, but it does support abundant
and diverse marine fauna and flora. In 2001, the waters surrounding
the reef out to 12 nm were designated a US National Wildlife Refuge.

Kiribati
The Gilbert Islands were granted self-rule by the UK in
1971 and complete independence in 1979 under the new name of
Kiribati. The US relinquished all claims to the sparsely inhabited
Phoenix and Line Island groups in a 1979 treaty of friendship with
Kiribati.

Korea, North
An independent kingdom under Chinese suzerainty for
most of the past millennium, Korea was occupied by Japan in 1905
following the Russo-Japanese War; five years later, Japan formally
annexed the entire peninsula. Following World War II, Korea was
split with the northern half coming under Soviet-sponsored Communist
domination. After failing in the Korean War (1950-53) to conquer the
US-backed republic in the southern portion by force, North Korea,
under its founder President KIM Il Sung, adopted a policy of
ostensible diplomatic and economic "self-reliance" as a check
against excessive Soviet or Communist Chinese influence. It molded
political, economic, and military policies around the core
ideological objective of eventual unification of Korea under
Pyongyang's control. KIM's son, the current ruler KIM Jong Il, was
officially designated as KIM's successor in 1980 and assumed a
growing political and managerial role until his father's death in
1994. He assumed full power without opposition. After decades of
economic mismanagement and resource misallocation, the North since
the mid-1990s has relied heavily on international aid to feed its
population while continuing to expend resources to maintain an army
of about 1 million. North Korea's long-range missile development and
research into nuclear, chemical, and biological weapons and massive
conventional armed forces are of major concern to the international
community. In December 2002, following revelations it was pursuing a
nuclear weapons program based on enriched uranium in violation of a
1994 agreement with the United States to freeze and ultimately
dismantle its existing plutonium-based program, North Korea expelled
monitors from the International Atomic Energy Agency (IAEA). In
January 2003, it declared its withdrawal from the international
Non-Proliferation Treaty. In mid-2003 Pyongyang announced it had
completed the reprocessing of spent nuclear fuel rods (to extract
weapons-grade plutonium) and was developing a "nuclear deterrent."
From August 2003, North Korea has participated on and off in
six-party talks with the China, Japan, Russia, South Korea, and the
United States to resolve the stalemate over its nuclear programs.

Korea, South
Korea was an independent kingdom under Chinese
suzerainty for most of the past millennium. Following its victory in
the Russo-Japanese War in 1905, Japan occupied Korea; five years
later it formally annexed the entire peninsula. After World War II,
a republic was set up in the southern half of the Korean Peninsula
while a Communist-style government was installed in the north.
During the Korean War (1950-53), US and other UN forces intervened
to defend South Korea from North Korean attacks supported by the
Chinese. An armistice was signed in 1953, splitting the peninsula
along a demilitarized zone at about the 38th parallel. Thereafter,
South Korea achieved rapid economic growth with per capita income
rising to roughly 14 times the level of North Korea. In 1987, South
Korean voters elected ROH Tae-woo to the presidency, ending 26 years
of military dictatorships. South Korea today is a fully functioning
modern democracy. In June 2000, a historic first North-South summit
took place between the South's President KIM Tae-chung and the
North's leader KIM Jong Il.

Kuwait
Britain oversaw foreign relations and defense for the ruling
Kuwaiti AL-SABAH dynasty from 1899 until independence in 1961.
Kuwait was attacked and overrun by Iraq on 2 August 1990. Following
several weeks of aerial bombardment, a US-led, UN coalition began a
ground assault on 23 February 1991 that liberated Kuwait in four
days. Kuwait spent more than $5 billion to repair oil infrastructure
damaged during 1990-91.

Kyrgyzstan
A Central Asian country of incredible natural beauty and
proud nomadic traditions, Kyrgyzstan was annexed by Russia in 1864;
it achieved independence from the Soviet Union in 1991. Nation-wide
demonstrations in the spring of 2005 resulted in the ouster of
President Askar AKAYEV, who had run the country since 1990.
Subsequent presidential elections in July of 2005 were won
overwhelmingly by former prime minister Kurmanbek BAKIYEV. Current
concerns include: privatization of state-owned enterprises,
expansion of democracy and political freedoms, interethnic
relations, and combating terrorism.

Laos
Laos was under the control of Siam (Thailand) from the late
18th century until the late 19th century when it became part of
French Indochina. The Franco-Siamese Treaty of 1907 defined the
current Lao border with Thailand. In 1975, the Communist Pathet Lao
took control of the government, ending a six-century-old monarchy.
Initial closer ties to Vietnam and socialization were replaced with
a gradual return to private enterprise, a liberalization of foreign
investment laws, and the admission into ASEAN in 1997.

Latvia
After a brief period of independence between the two World
Wars, Latvia was annexed by the USSR in 1940. It reestablished its
independence in 1991 following the breakup of the Soviet Union.
Although the last Russian troops left in 1994, the status of the
Russian minority (some 30% of the population) remains of concern to
Moscow. Latvia joined both NATO and the EU in the spring of 2004.

Lebanon
Lebanon has made progress toward rebuilding its political
institutions since 1991 and the end of the devastating 15-year civil
war. Under the Ta'if Accord - the blueprint for national
reconciliation - the Lebanese have established a more equitable
political system, particularly by giving Muslims a greater say in
the political process while institutionalizing sectarian divisions
in the government. Since the end of the war, the Lebanese have
conducted several successful elections, most of the militias have
been weakened or disbanded, and the Lebanese Armed Forces (LAF) have
extended central government authority over about two-thirds of the
country. Hizballah, a radical Shia organization, retains its
weapons. During Lebanon's civil war, the Arab League legitimized in
the Ta'if Accord Syria's troop deployment, numbering about 16,000
based mainly east of Beirut and in the Bekaa Valley. Damascus
justified its continued military presence in Lebanon by citing
Beirut's requests and the failure of the Lebanese Government to
implement all of the constitutional reforms in the Ta'if Accord.
Israel's withdrawal from southern Lebanon in May 2000, however,
encouraged some Lebanese groups to demand that Syria withdraw its
forces as well. The passage of UNSCR 1559 in early October 2004 - a
resolution calling for Syria to withdraw from Lebanon and end its
interference in Lebanese affairs - further emboldened Lebanese
groups opposed to Syria's presence in Lebanon. Syria finally
withdrew the remainder of its forces from Lebanon in April of 2005.

Lesotho
Basutoland was renamed the Kingdom of Lesotho upon
independence from the UK in 1966. King MOSHOESHOE was exiled in
1990, but returned to Lesotho in 1992 and reinstated in 1995.
Constitutional government was restored in 1993 after 23 years of
military rule. In 1998, violent protests and a military mutiny
following a contentious election prompted a brief but bloody
intervention by South African and Botswanan military forces under
the aegis of the Southern African Development Community.
Constitutional reforms have since restored political stability;
peaceful parliamentary elections were held in 2002.

Liberia
In August 2003, a comprehensive peace agreement ended 14
years of civil war and prompted the resignation of former president
Charles TAYLOR, who was exiled to Nigeria. The National Transitional
Government of Liberia (NTGL) - composed of rebel, government, and
civil society groups - assumed control in October 2003. Chairman
Gyude BRYANT, who was given a two-year mandate to oversee efforts to
rebuild Liberia, heads the new government. The United Nations
Mission in Liberia (UNMIL), which maintains a strong presence
throughout the country, completed a disarmament program for former
combatants in late 2004, but the security situation is still
volatile and the process of rebuilding the social and economic
structure of this war-torn country remains sluggish.

Libya
From the earliest days of his rule following his 1969 military
coup, Col. Muammar Abu Minyar al-QADHAFI has espoused his own
political system, the Third Universal Theory. The system is a
combination of socialism and Islam derived in part from tribal
practices and is supposed to be implemented by the Libyan people
themselves in a unique form of "direct democracy." QADHAFI has
always seen himself as a revolutionary and visionary leader. He used
oil funds during the 1970s and 1980s to promote his ideology outside
Libya, supporting subversives and terrorists abroad to hasten the
end of Marxism and capitalism. In addition, beginning in 1973, he
engaged in military operations in northern Chad's Aozou Strip - to
gain access to minerals and to use as a base of influence in Chadian
politics - but was forced to retreat in 1987. UN sanctions in 1992
isolated QADHAFI politically following the downing of Pan AM Flight
103 over Lockerbie, Scotland. Libyan support for terrorism appeared
to have decreased after the imposition of sanctions. During the
1990s, QADHAFI also began to rebuild his relationships with Europe.
UN sanctions were suspended in April 1999 and finally lifted in
September 2003 after Libya resolved the Lockerbie case. In December
2003, Libya announced that it had agreed to reveal and end its
programs to develop weapons of mass destruction, and QADHAFI has
made significant strides in normalizing relations with western
nations since then. He has received various Western European leaders
as well as many working-level and commercial delegations, and made
his first trip to Western Europe in 15 years when he traveled to
Brussels in April 2004. QADHAFI also finally resolved in 2004
several outstanding cases against his government for terrorist
activities in the 1980s by paying compensation to the families of
victims of the UTA and La Belle disco bombings.

Liechtenstein
The Principality of Liechtenstein was established
within the Holy Roman Empire in 1719; it became a sovereign state in
1806. Until the end of World War I, it was closely tied to Austria,
but the economic devastation caused by that conflict forced
Liechtenstein to enter into a customs and monetary union with
Switzerland. Since World War II (in which Liechtenstein remained
neutral), the country's low taxes have spurred outstanding economic
growth. Shortcomings in banking regulatory oversight have resulted
in concerns about the use of the financial institutions for money
laundering. Liechtenstein has, however, implemented new
anti-money-laundering legislation and recently concluded a Mutual
Legal Assistance Treaty with the US.