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

Chile
Prior to the coming of the Spanish in the 16th century,
northern Chile was under Inca rule while Araucanian Indians
inhabited central and southern Chile; the latter were not completely
subjugated by Spain until the early 1880s. Although Chile declared
its independence in 1810, decisive victory over the Spanish was not
achieved until 1818. In the War of the Pacific (1879-84), Chile
defeated Peru and Bolivia and won its present northern lands. A
three-year-old Marxist government of Salvador ALLENDE was overthrown
in 1973 by a dictatorial military regime led by Augusto PINOCHET,
who ruled until a freely elected president was installed in 1990.
Sound economic policies, maintained consistently since the 1980s,
have contributed to steady growth and have helped secure the
country's commitment to democratic and representative government.
Chile has increasingly assumed regional and international leadership
roles befitting its status as a stable, democratic nation.

China
For centuries China stood as a leading civilization, outpacing
the rest of the world in the arts and sciences, but in the 19th and
early 20th centuries, the country was beset by civil unrest, major
famines, military defeats, and foreign occupation. After World War
II, the Communists under MAO Zedong established an autocratic
socialist system that, while ensuring China's sovereignty, imposed
strict controls over everyday life and cost the lives of tens of
millions of people. After 1978, his successor DENG Xiaoping and
other leaders focused on market-oriented economic development and by
2000 output had quadrupled. For much of the population, living
standards have improved dramatically and the room for personal
choice has expanded, yet political controls remain tight.

Christmas Island
Named in 1643 for the day of its discovery, the
island was annexed and settlement began by the UK in 1888. Phosphate
mining began in the 1890s. The UK transferred sovereignty to
Australia in 1958. Almost two-thirds of the island has been declared
a national park.

Clipperton Island
This isolated island was named for John
CLIPPERTON, a pirate who made it his hideout early in the 18th
century. Annexed by France in 1855, it was seized by Mexico in 1897.
Arbitration eventually awarded the island to France, which took
possession in 1935.

Cocos (Keeling) Islands
There are 27 coral islands in the group.
Captain William KEELING discovered the islands in 1609, but they
remained uninhabited until the 19th century. Annexed by the UK in
1857, they were transferred to the Australian Government in 1955.
The population on the two inhabited islands generally is split
between the ethnic Europeans on West Island and the ethnic Malays on
Home Island.

Colombia
Colombia was one of the three countries that emerged from
the collapse of Gran Colombia in 1830 (the others are Ecuador and
Venezuela). A 40-year conflict between government forces and
anti-government insurgent groups and illegal paramilitary groups -
both heavily funded by the drug trade - escalated during the 1990s.
The insurgents lack the military or popular support necessary to
overthrow the government, and violence has been decreasing since
about 2002, but insurgents continue attacks against civilians and
large swaths of the countryside are under guerrilla influence.
Paramilitary groups challenge the insurgents for control of
territory and the drug trade. Most paramilitary members have
demobilized since 2002 in an ongoing peace process, although their
commitment to ceasing illicit activity is unclear. The Colombian
Government has stepped up efforts to reassert government control
throughout the country, and now has a presence in every one of its
municipalities. However, neighboring countries worry about the
violence spilling over their borders.

Comoros
Comoros has endured 19 coups or attempted coups since
gaining independence from France in 1975. In 1997, the islands of
Anjouan and Moheli declared independence from Comoros. In 1999,
military chief Col. AZALI seized power. He pledged to resolve the
secessionist crisis through a confederal arrangement named the 2000
Fomboni Accord. In December 2001, voters approved a new constitution
and presidential elections took place in the spring of 2002. Each
island in the archipelago elected its own president and a new union
president took office in May 2002.

Congo, Democratic Republic of the
Established as a Belgian colony in
1908, the Republic of the Congo gained its independence in 1960, but
its early years were marred by political and social instability.
Col. Joseph MOBUTU seized power and declared himself president in a
November 1965 coup. He subsequently changed his name - to MOBUTU
Sese Seko - as well as that of the country - to Zaire. MOBUTU
retained his position for 32 years through several subsequent sham
elections, as well as through the use of brutal force. Ethnic strife
and civil war, touched off by a massive inflow of refugees in 1994
from fighting in Rwanda and Burundi, led in May 1997 to the toppling
of the MOBUTU regime by a rebellion led by Laurent KABILA. He
renamed the country the Democratic Republic of the Congo (DRC), but
in August 1998 his regime was itself challenged by an insurrection
backed by Rwanda and Uganda. Troops from Angola, Chad, Namibia,
Sudan, and Zimbabwe intervened to support the Kinshasa regime. A
cease-fire was signed in July 1999 by the DRC, Congolese armed rebel
groups, Angola, Namibia, Rwanda, Uganda, and Zimbabwe but sporadic
fighting continued. Laurent KABILA was assassinated in January 2001
and his son, Joseph KABILA, was named head of state. In October
2002, the new president was successful in negotiating the withdrawal
of Rwandan forces occupying eastern Congo; two months later, the
Pretoria Accord was signed by all remaining warring parties to end
the fighting and establish a government of national unity. A
transitional government was set up in July 2003; with Joseph KABILA
as president and joined by four vice presidents representing the
former government, former rebel groups, and the political
opposition. The transitional government held a successful
constitutional referendum in December 2005 and elections for the
presidency, National Assembly, and provincial legislatures in 2006.
KABILA was inaugurated president in December 2006.

Congo, Republic of the
Upon independence in 1960, the former French
region of Middle Congo became the Republic of the Congo. A quarter
century of experimentation with Marxism was abandoned in 1990 and a
democratically elected government took office in 1992. A brief civil
war in 1997 restored former Marxist President Denis SASSOU-NGUESSO,
and ushered in a period of ethnic and political unrest.
Southern-based rebel groups agreed to a final peace accord in March
2003, but the calm is tenuous and refugees continue to present a
humanitarian crisis. The Republic of Congo was once one of Africa's
largest petroleum producers, but with declining production it will
need to hope for new offshore oil finds to sustain its oil earnings
over the long term.

Cook Islands
Named after Captain COOK, who sighted them in 1770, the
islands became a British protectorate in 1888. By 1900,
administrative control was transferred to New Zealand; in 1965
residents chose self-government in free association with New
Zealand. The emigration of skilled workers to New Zealand and
government deficits are continuing problems.

Coral Sea Islands
Scattered over more than three-quarters of a
million square kilometers of ocean, the Coral Sea Islands were
declared a territory of Australia in 1969. They are uninhabited
except for a small meteorological staff on the Willis Islets.
Automated weather stations, beacons, and a lighthouse occupy many
other islands and reefs.

Costa Rica
Although explored by the Spanish early in the 16th
century, initial attempts at colonizing Costa Rica proved
unsuccessful due to a combination of factors, including: disease
from mosquito-infested swamps, brutal heat, resistance by natives,
and pirate raids. It was not until 1563 that a permanent settlement
of Cartago was established in the cooler, fertile central highlands.
The area remained a colony for some two and a half centuries. In
1821, Costa Rica became one of several Central American provinces
that jointly declared their independence from Spain. Two years later
it joined the United Provinces of Central America, but this
federation disintegrated in 1838, at which time Costa Rica
proclaimed its sovereignty and independence. Since the late 19th
century, only two brief periods of violence have marred the
country's democratic development. Although it still maintains a
large agricultural sector, Costa Rica has expanded its economy to
include strong technology and tourism industries. The standard of
living is relatively high. Land ownership is widespread.

Cote d'Ivoire
Close ties to France since independence in 1960, the
development of cocoa production for export, and foreign investment
made Cote d'Ivoire one of the most prosperous of the tropical
African states, but did not protect it from political turmoil. In
December 1999, a military coup - the first ever in Cote d'Ivoire's
history - overthrew the government. Junta leader Robert GUEI
blatantly rigged elections held in late 2000 and declared himself
the winner. Popular protest forced him to step aside and brought
runner-up Laurent GBAGBO into power. Ivorian dissidents and
disaffected members of the military launched a failed coup attempt
in September 2002. Rebel forces claimed the northern half of the
country, and in January 2003 were granted ministerial positions in a
unity government under the auspices of the Linas-Marcoussis Peace
Accord. President GBAGBO and rebel forces resumed implementation of
the peace accord in December 2003 after a three-month stalemate, but
issues that sparked the civil war, such as land reform and grounds
for citizenship, remain unresolved. The central government has yet
to exert control over the northern regions and tensions remain high
between GBAGBO and opposition leaders. Several thousand French and
West African troops remain in Cote d'Ivoire to maintain peace and
facilitate the disarmament, demobilization, and rehabilitation
process.

Croatia
The lands that today comprise Croatia were part of the
Austro-Hungarian Empire until the close of World War I. In 1918, the
Croats, Serbs, and Slovenes formed a kingdom known after 1929 as
Yugoslavia. Following World War II, Yugoslavia became a federal
independent Communist state under the strong hand of Marshal TITO.
Although Croatia declared its independence from Yugoslavia in 1991,
it took four years of sporadic, but often bitter, fighting before
occupying Serb armies were mostly cleared from Croatian lands. Under
UN supervision, the last Serb-held enclave in eastern Slavonia was
returned to Croatia in 1998.

Cuba
The native Amerindian population of Cuba began to decline after
the European discovery of the island by Christopher COLUMBUS in 1492
and following its development as a Spanish colony during the next
several centuries. Large numbers of African slaves were imported to
work the coffee and sugar plantations, and Havana became the
launching point for the annual treasure fleets bound for Spain from
Mexico and Peru. Spanish rule, marked initially by neglect, became
increasingly repressive, provoking an independence movement and
occasional rebellions that were harshly suppressed. It was US
intervention during the Spanish-American War in 1898 that finally
overthrew Spanish rule. The subsequent Treaty of Paris established
Cuban independence, which was granted in 1902 after a three-year
transition period. Fidel CASTRO led a rebel army to victory in 1959;
his iron rule has held the regime together since then. Cuba's
Communist revolution, with Soviet support, was exported throughout
Latin America and Africa during the 1960s, 1970s, and 1980s. The
country is now slowly recovering from a severe economic recession in
1990, following the withdrawal of former Soviet subsidies, worth $4
billion to $6 billion annually. Cuba portrays its difficulties as
the result of the US embargo in place since 1961. Illicit migration
to the US - using homemade rafts, alien smugglers, air flights, or
via the southwest border - is a continuing problem. The US Coast
Guard intercepted 2,810 individuals attempting to cross the Straits
of Florida in fiscal year 2006.

Cyprus
A former British colony, Cyprus became independent in 1960
following years of resistance to British rule. Tensions between the
Greek Cypriot majority and Turkish Cypriot minority came to a head
in December 1963, when violence broke out in the capital of Nicosia.
Despite the deployment of UN peacekeepers in 1964, sporadic
intercommunal violence continued forcing most Turkish Cypriots into
enclaves throughout the island. In 1974, a Greek
Government-sponsored attempt to seize control of Cyprus was met by
military intervention from Turkey, which soon controlled more than a
third of the island. In 1983, the Turkish-held area declared itself
the "Turkish Republic of Northern Cyprus," but it is recognized only
by Turkey. The latest two-year round of UN-brokered talks - between
the leaders of the Greek Cypriot and Turkish Cypriot communities to
reach an agreement to reunite the divided island - ended when the
Greek Cypriots rejected the UN settlement plan in an April 2004
referendum. The entire island entered the EU on 1 May 2004, although
the EU acquis - the body of common rights and obligations - applies
only to the areas under direct Republic of Cyprus control, and is
suspended in the areas administered by Turkish Cypriots. However,
individual Turkish Cypriots able to document their eligibility for
Republic of Cyprus citizenship legally enjoy the same rights
accorded to other citizens of European Union states. Nicosia
continues to oppose EU efforts to establish direct trade and
economic links to north Cyprus as a way of encouraging the Turkish
Cypriot community to continue to support reunification.

Czech Republic
Following the First World War, the closely related
Czechs and Slovaks of the former Austro-Hungarian Empire merged to
form Czechoslovakia. During the interwar years, the new country's
leaders were frequently preoccupied with meeting the demands of
other ethnic minorities within the republic, most notably the
Sudeten Germans and the Ruthenians (Ukrainians). After World War II,
a truncated Czechoslovakia fell within the Soviet sphere of
influence. In 1968, an invasion by Warsaw Pact troops ended the
efforts of the country's leaders to liberalize Communist party rule
and create "socialism with a human face." Anti-Soviet demonstrations
the following year ushered in a period of harsh repression. With the
collapse of Soviet authority in 1989, Czechoslovakia regained its
freedom through a peaceful "Velvet Revolution." On 1 January 1993,
the country underwent a "velvet divorce" into its two national
components, the Czech Republic and Slovakia. The Czech Republic
joined NATO in 1999 and the European Union in 2004.

Denmark
Once the seat of Viking raiders and later a major north
European power, Denmark has evolved into a modern, prosperous nation
that is participating in the general political and economic
integration of Europe. It joined NATO in 1949 and the EEC (now the
EU) in 1973. However, the country has opted out of certain elements
of the European Union's Maastricht Treaty, including the European
Economic and Monetary Union (EMU), European defense cooperation, and
issues concerning certain justice and home affairs.

Dhekelia
By terms of the 1960 Treaty of Establishment that created
the independent Republic of Cyprus, the UK retained full sovereignty
and jurisdiction over two areas of almost 254 square kilometers -
Akrotiri and Dhekelia. The larger of these is the Dhekelia Sovereign
Base Area, which is also referred to as the Eastern Sovereign Base
Area.

Djibouti
The French Territory of the Afars and the Issas became
Djibouti in 1977. Hassan Gouled APTIDON installed an authoritarian
one-party state and proceeded to serve as president until 1999.
Unrest among the Afars minority during the 1990s led to a civil war
that ended in 2001 following the conclusion of a peace accord
between Afar rebels and the Issa-dominated government. In 1999,
Djibouti's first multi-party presidential elections resulted in the
election of Ismail Omar GUELLEH; he was re-elected to a second and
final term in 2005. Djibouti occupies a strategic geographic
location at the mouth of the Red Sea and serves as an important
transshipment location for goods entering and leaving the east
African highlands. The present leadership favors close ties to
France, which maintains a significant military presence in the
country, but is also developing stronger ties with the US. Djibouti
hosts the only US military base in sub-Saharan Africa and is a
front-line state in the global war on terrorism.

Dominica
Dominica was the last of the Caribbean islands to be
colonized by Europeans due chiefly to the fierce resistance of the
native Caribs. France ceded possession to Great Britain in 1763,
which made the island a colony in 1805. In 1980, two years after
independence, Dominica's fortunes improved when a corrupt and
tyrannical administration was replaced by that of Mary Eugenia
CHARLES, the first female prime minister in the Caribbean, who
remained in office for 15 years. Some 3,000 Carib Indians still
living on Dominica are the only pre-Columbian population remaining
in the eastern Caribbean.

Dominican Republic
Explored and claimed by Christopher COLUMBUS on
his first voyage in 1492, the island of Hispaniola became a
springboard for Spanish conquest of the Caribbean and the American
mainland. In 1697, Spain recognized French dominion over the western
third of the island, which in 1804 became Haiti. The remainder of
the island, by then known as Santo Domingo, sought to gain its own
independence in 1821, but was conquered and ruled by the Haitians
for 22 years; it finally attained independence as the Dominican
Republic in 1844. In 1861, the Dominicans voluntarily returned to
the Spanish Empire, but two years later they launched a war that
restored independence in 1865. A legacy of unsettled, mostly
non-representative rule followed, capped by the dictatorship of
Rafael Leonidas TRUJILLO from 1930-1961. Juan BOSCH was elected
president in 1962, but was deposed in a military coup in 1963. In
1965, the United States led an intervention in the midst of a civil
war sparked by an uprising to restore BOSCH. In 1966, Joaquin
BALAGUER defeated BOSCH in an election to become president. BALAGUER
maintained a tight grip on power for most of the next 30 years when
international reaction to flawed elections forced him to curtail his
term in 1996. Since then, regular competitive elections have been
held in which opposition candidates have won the presidency. Former
President (1996-2000) Leonel FERNANDEZ Reyna won election to a
second term in 2004 following a constitutional amendment allowing
presidents to serve more than one term.

East Timor
The Portuguese began to trade with the island of Timor in
the early 16th century and colonized it in mid-century. Skirmishing
with the Dutch in the region eventually resulted in an 1859 treaty
in which Portugal ceded the western portion of the island. Imperial
Japan occupied East Timor from 1942 to 1945, but Portugal resumed
colonial authority after the Japanese defeat in World War II. East
Timor declared itself independent from Portugal on 28 November 1975
and was invaded and occupied by Indonesian forces nine days later.
It was incorporated into Indonesia in July 1976 as the province of
East Timor. An unsuccessful campaign of pacification followed over
the next two decades, during which an estimated 100,000 to 250,000
individuals lost their lives. On 30 August 1999, in a UN-supervised
popular referendum, an overwhelming majority of the people of East
Timor voted for independence from Indonesia. Between the referendum
and the arrival of a multinational peacekeeping force in late
September 1999, anti-independence Timorese militias - organized and
supported by the Indonesian military - commenced a large-scale,
scorched-earth campaign of retribution. The militias killed
approximately 1,400 Timorese and forcibly pushed 300,000 people into
West Timor as refugees. The majority of the country's
infrastructure, including homes, irrigation systems, water supply
systems, and schools, and nearly 100% of the country's electrical
grid were destroyed. On 20 September 1999 the Australian-led
peacekeeping troops of the International Force for East Timor
(INTERFET) deployed to the country and brought the violence to an
end. On 20 May 2002, East Timor was internationally recognized as an
independent state. In March of 2006, a military strike led to
violence and a near breakdown of law and order. Over 2,000
Australian, New Zealand, and Portuguese police and peacekeepers
deployed to East Timor in late May. Although many of the
peacekeepers were replaced by UN police officers, 850 Australian
soldiers remained as of 1 January 2007.

Ecuador
What is now Ecuador formed part of the northern Inca Empire
until the Spanish conquest in 1533. Quito became a seat of Spanish
colonial government in 1563 and part of the Viceroyalty of New
Granada in 1717. The territories of the Viceroyalty - New Granada
(Colombia), Venezuela, and Quito - gained their independence by 1819
and formed a federation known as Gran Colombia. When Quito withdrew
in 1830, the traditional name was changed in favor of the "Republic
of the Equator." Between 1904 and 1942, Ecuador lost territories in
a series of conflicts with its neighbors. A border war with Peru
that flared in 1995 was resolved in 1999. Although Ecuador marked 25
years of civilian governance in 2004, the period has been marred by
political instability. Protests in Quito have contributed to the
mid-term ouster of Ecuador's last three democratically elected
Presidents.

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 Teodoro OBIANG NGUEMA MBASOGO
has ruled the country since 1979 when he seized power in a coup.
Although nominally a constitutional democracy since 1991, the 1996
and 2002 presidential elections - as well as the 1999 and 2004
legislative elections - were widely seen as flawed. The president
exerts almost total control over the political system and has
discouraged political opposition. Equatorial Guinea has experienced
rapid economic growth due to the discovery of large offshore oil
reserves, and in the last decade has become Sub-Saharan Africa's
third largest oil exporter. 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
population'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 in 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 - an action never recognized by the US - 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 border war with Eritrea
late in the 1990's ended with a peace treaty in 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 territory considered sensitive to Ethiopia.

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 became 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 - and in 2007 Bulgaria and
Romania joined, bringing the current membership to 27. In order to
ensure that the EU can continue to function efficiently with an
expanded membership, the Treaty of Nice (in force as of 1 February
2003) 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 rejected the
proposed constitution. This development set back the ratification
effort and left the longer-term political integration of the EU in
limbo.

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). The
coups and a 1990 constitution that cemented native Melanesian
control of Fiji, led to heavy Indian emigration; the population loss
resulted in economic difficulties, but ensured that Melanesians
became the majority. A new constitution enacted in 1997 was more
equitable. Free and peaceful elections in 1999 resulted in a
government led by an Indo-Fijian, but a civilian-led 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 led by Prime Minister Laisenia
QARASE. Re-elected in May 2006, QARASE was ousted in a December 2006
military coup led by Commodore Voreqe BAINIMARAMA, who initially
appointed himself acting president. In January 2007, BAINIMARAMA was
appointed interim prime minister.

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. A member of the European Union since 1995,
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 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. In recent years, French Polynesia's autonomy has been
considerably expanded.

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. The current president of Gabon, El
Hadj Omar BONGO Ondimba - one of the longest-serving heads of state
in the world - has dominated the country's political scene for
almost four decades. President BONGO introduced a nominal multiparty
system and a new constitution in the early 1990s. However,
allegations of electoral fraud during local elections in 2002-03 and
the presidential elections in 2005 have exposed the weaknesses of
formal political structures in Gabon. Gabon's political 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.
Geographically surrounded by Senegal, it formed a short-lived
federation of Senegambia between 1982 and 1989. In 1991 the two
nations signed a friendship and cooperation treaty, but tensions
have flared up intermittently since then. Yahya A. J. J. JAMMEH led
a military coup in 1994 that overthrew the president and banned
political activity. A new constitution and presidential elections in
1996, followed by parliamentary balloting in 1997, completed a
nominal return to civilian rule. JAMMEH has been elected president
in all subsequent elections, including most recently in late 2006.

Gaza Strip
The Israel-PLO Declaration of Principles on Interim
Self-Government Arrangements (the DOP), signed in Washington in
September 1993, provided for a transitional period of Palestinian
interim self-government in the Gaza Strip and the West Bank. A
transfer of authority to the Palestinian Authority (PA) 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. Direct negotiations to determine the permanent
status of Gaza and the West Bank began in September 1999 after a
three-year hiatus, but were derailed by a second intifadah that
broke out a year later. In April 2003, the Quartet (US, EU, UN, and
Russia) presented a roadmap to a final settlement of the conflict by
2005 based on reciprocal steps by the two parties leading to two
states, Israel and a democratic Palestine. The proposed date for a
permanent status agreement has been postponed indefinitely due to
violence and accusations that both sides have not followed through
on their commitments. Following Palestinian leader Yasir ARAFAT's
death in late 2004, Mahmud ABBAS was elected PA president in January
2005. A month later, Israel and the PA agreed to the Sharm el-Sheikh
Commitments in an effort to move the peace process forward. In
September 2005, Israel withdrew all its settlers and soldiers and
dismantled its military facilities in the Gaza Strip and four
northern West Bank settlements. Nonetheless, Israel controls
maritime, airspace, and most access to the Gaza Strip. A November
2005 PA-Israeli agreement authorized the reopening of the Rafah
border crossing between the Gaza Strip and Egypt under joint PA and
Egyptian control. In January 2006, the Islamic Resistance Movement,
HAMAS, won control of the Palestinian Legislative Council (PLC). The
international community has refused to accept the HAMAS-led
government because it does not recognize Israel, will not renounce
violence, and refuses to honor previous peace agreements between
Israel and the PA. Since March 2006, President Abbas has had little
success negotiating with HAMAS to present a political platform
acceptable to the international community so as to lift the economic
siege on Palestinians. The PLC was unable to convene in late 2006 as
a result of Israel's detention of many HAMAS PLC members and
Israeli-imposed travel restrictions on other PLC members.

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 A.D. and Christianity became the
state religion in the 330s. Domination by Persians, Arabs, and Turks
was followed by a Georgian golden age (11th-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. An attempt by the incumbent Georgian
government to manipulate national 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. Progress on market reforms and democratization has
been made in the years since independence, but this progress has
been complicated by two civil conflicts in the breakaway regions of
Abkhazia and South Ossetia. These two territories remain outside the
control of the central government and are ruled by de facto,
unrecognized governments, supported by Russia. Russian-led
peacekeeping operations continue in both regions. The Georgian
Government put forward a new peace initiative for the peaceful
resolution of the status of South Ossetia in 2005.

Germany
As Europe's largest economy and second most populous nation,
Germany is 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
John ATTA-MILLS in a free and fair election, succeeded him.

Gibraltar
Strategically important, Gibraltar was reluctantly ceded
to Great Britain by Spain in the 1713 Treaty of Utrecht; the British
garrison was formally declared a colony in 1830. In a referendum
held in 1967, Gibraltarians voted overwhelmingly to remain a British
dependency. Although the current 1969 Constitution for Gibraltar
states that the British government will never allow the people of
Gibraltar to pass under the sovereignty of another state against
their freely and democratically expressed wishes, a series of talks
were held by the UK and Spain between 1997 and 2002 on establishing
temporary joint sovereignty over Gibraltar. In response to these
talks, the Gibraltarian Government set up a referendum in late 2002
in which a majority of the citizens voted overwhelmingly against any
sharing of sovereignty with Spain. Since the referendum, tripartite
talks have been held with Spain, the UK, and Gibraltar, and in
September 2006 a three-way agreement was signed. Spain agreed to
allow airlines other than British to serve Gibraltar, to speed up
customs procedures, and to add more telephone lines into Gibraltar.
Britain agreed to pay pensions to Spaniards who had been employed in
Gibraltar before the border closed in 1969. Spain will be allowed to
open a cultural institute from which the Spanish flag will fly.

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 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 supporters of the king and Communist rebels. Following the
latter's defeat in 1949, Greece joined 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. In 1981 Greece joined the EC
(now the EU); it became the 12th member of the euro zone in 2001.

Greenland
Greenland, the world's largest island, 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 EU) with Denmark in 1973, but
withdrew in 1985 over a dispute centered on 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 in
consultation with Greenland's Home Rule Government.

Grenada
Carib Indians inhabited Grenada when COLUMBUS discovered the
island in 1498, but it remained uncolonized for more than a century.
The French settled Grenada in the 17th century, established sugar
estates, and imported large numbers of African slaves. Britain took
the island in 1762 and vigorously expanded sugar production. In the
19th century, cacao eventually surpassed sugar as the main export
crop; in the 20th century, nutmeg became the leading export. In
1967, Britain gave Grenada autonomy over its internal affairs. Full
independence was attained in 1974 making 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 and have continued since that time. Hurricane Ivan struck
Grenada in September of 2004 causing severe damage.

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
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. Guernsey is a British
crown dependency, but is not part of the UK. However, the UK
Government is constitutionally responsible for defense and
international representation.

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. In 2006, declining economic conditions prompted two
massive strikes that sparked urban unrest in many Guinean cities.

Guinea-Bissau
Since independence from Portugal in 1974,
Guinea-Bissau has experienced considerable political and military
upheaval. In 1980, a military coup established authoritarian
dictator Joao Bernardo 'Nino' VIEIRA as president. Despite setting a
path to a market economy and multiparty system, VIEIRA's regime was
characterized by the suppression of political opposition and the
purging of political rivals. Several coup attempts through the 1980s
and early 1990s failed to unseat him. In 1994 VIEIRA was elected
president in the country's first free elections. A military mutiny
and resulting civil war in 1998 eventually led to VIEIRA's ouster in
May 1999. In February 2000, a transitional government turned over
power to opposition leader Kumba YALA, after he was elected
president in transparent polling. In September 2003, after only
three years in office, YALA was ousted by the military in a
bloodless coup, and businessman Henrique ROSA was sworn in as
interim president. In 2005, former President VIEIRA was re-elected
president pledging to pursue economic development and national
reconciliation.

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, and
since then it has been 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. After his death five years later, his wife, Jane
JAGAN, became president but resigned in 1999 due to poor health. Her
successor, Bharrat JAGDEO, was reelected in 2001 and again in 2006.

Haiti
The native Taino 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, which later became 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. After a prolonged struggle, Haiti became the first
black republic to declare its independence in 1804. The poorest
country in the Western Hemisphere, Haiti has been plagued by
political violence for most of its history. After an armed rebellion
led to the departure of President Jean-Betrand ARISTIDE in February
2004, an interim government took office to organize new elections
under the auspices of the United Nations Stabilization Mission in
Haiti (MINUSTAH). Continued violence and technical delays prompted
repeated postponements, but Haiti finally did inaugurate a
democratically elected president and parliament in May of 2006.

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.

Iles Eparses
The Iles Eparses, or scattered islands, are a group of
five French entities - Bassas da India, Europa Island, Glorioso
Islands, Juan de Nova Island, and Tromelin Island - which on 1 April
1960 came under the authority of the Minister in charge of overseas
possessions. On 19 September 1960 by decree, the islands were
transferred to the charge of the Prefet of Reunion where they
remained until 3 January 2005 when they were transferred by another
decree to the Senior Administrator of the Territory of the French
Southern and Antarctic Lands (TAAF).
Bassas da India: A French possession since 1897, this atoll is a
volcanic seamount surrounded by reefs and awash at high tide.
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.
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.
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.
Tromelin Island: First explored by the French in 1776, the island
came under the jurisdiction of Reunion in 1814. At present, it
serves as a sea turtle sanctuary and is the site of an important
meteorological station.