investment of years of civil war are still felt today, as investors who left Chad between 1979-82 have only recently begun to regain confidence in the country's future. The most important economic venture to date is the Doba Basin oil extraction project in southern Chad. The project included unique mechanisms for World Bank, private sector, government, and civil society collaboration to guarantee that future oil revenues would benefit local populations and result in poverty alleviation. Oil exploitation in the southern Doba region began in June 2000, with U.S.-based Exxon Mobil leading a consortium in a $3.7 billion project to export oil via a 1,000-km. buried pipeline through Cameroon to the Gulf of Guinea. Beginning in late 2000, development of Chad's petroleum sector stimulated economic growth by attracting major investment and increased levels of U.S. trade. Oil revenue began trickling into the country in July 2004. It was hoped that this project would serve as a catalyst for the entire economy by helping to reduce energy costs and attracting additional trade and investment in other sectors. However, the question remains whether Chad will continue to consolidate its economic reforms and invest its oil revenues wisely in order to encourage a wider range of economic initiatives. Political controversy surrounding elections and a rebellion in northern Chad also dampen Chad's economic prospects somewhat by exposing the weaknesses in Chad's political institutions. The U.S. Government expressed both concern and disappointment after the Government of Chad on August 26, 2006 ordered Chevron Oil Corporation and Petronas, members of the Exxon Mobil-led and operated oil consortium, to cease operations and leave Chad within 24 hours for alleged non-payment of income taxes. Chevron and Petronas entered into a tax agreement in 2000 with the government, represented by Petroleum Minister Mahamat Hassan Nasser, when they replaced Elf and Shell as minority members of the consortium. The companies assert that the agreement authorizes them to use a special depreciation schedule allowing greater tax deductions than those afforded consortium partner Exxon Mobil. The Government of Chad, however, claimed that the 2000 tax agreement was illegal, because it was negotiated by officials without proper authority and was not vetted by the National Assembly. The Government of Chad also announced plans to press charges against negotiating officials, and on August 28, 2006 replaced Nasser, as well as Economic Minister Mahamat Ali Hassan and Farming Minister Moucktar Moussa. Chevron and Petronas consider the Government of Chad to have violated its contractual obligations and planned to seek recourse through all diplomatic and legal means. While the U.S. takes no position on the merits of the dispute, it has urged all parties involved to respect any binding contractual commitments. Despite recent development of the petroleum sector, more than 80% of the work force is involved in agriculture (subsistence farming, herding, and fishing). Like many other developing countries, Chad has a small formal sector and a large, thriving informal sector. Statistics indicate the following distribution as percentage of GDP: Agriculture-32.5% (farming, livestock, fishing); industry-26.6%; and services-40.8%. Chad is highly dependent on foreign assistance. Its principal donors include the European Union, France, and the multilateral lending agencies. Primary markets for Chadian exports include neighboring Cameroon and Nigeria and France, Germany, and Portugal. Aside from oil, cotton remains a primary export, although exact figures are not available. Rehabilitation of CotonTchad, the major cotton company that suffered from a decline in world cotton prices, has been financed by France, the Netherlands, the European Economic Community (EC), and the International Bank for Reconstruction and Development (IBRD). The parastatal is now being privatized. The other major export is livestock, herded to neighboring countries. Herdsmen in the Sudanic and Sahelian zones raise cattle, sheep, goats, and, among the non-Muslims, a few pigs. In the Saharan region, only camels and a few hardy goats can survive. Chad also sells smoked and dried fish to its neighbors and exports several million dollars worth of gum arabic to Europe and the United States each year. Other food crops include millet, sorghum, peanuts, rice, sweet potatoes, manioc, cassava, and yams. After averaging 0.8% in 1999-2000, Chad's real GDP growth was estimated at 8.9% in 2001, and 10% in 2002 and 2003 as the Doba oil project accelerated. Inflation rose from 3.7% in 2000 to 12.4% in 2001, dropped to 5.2% in 2002, and was estimated to level out at 3% in 2004. These fluctuations were due in large part to increasing demand from the Doba project but also to fluctuations in agricultural production. After a disappointing agricultural campaign in 2000, increased production during the 2001-02 timeframe helped reduce inflation in 2002. In 2003, the contraction in investments, the 7% appreciation in the CFA Franc exchange rate, and bumper harvests combined to generate a 1% deflation in place of the projected 4.3% inflation. Chad's economic performance, at least until the onset of oil exports, continued to depend on fluctuations in rainfall and in prices of its principal export commodities, especially cotton. Since 1995, the Government of Chad has made incremental progress in implementing structural reforms and improving government finances under two successive structural adjustment programs. Most state enterprises have been partially or completely privatized, non-priority public spending has been lessened, and the government has gradually liberalized some key sectors of the economy. Liberalization of the telecommunications, cotton, and energy sectors is expected to proceed over the next several years. Chad reached the enhanced Heavily Indebted Poor Countries (HIPC) initiative completion point in May 2001. FOREIGN RELATIONS Chad is officially nonaligned but has close relations with France, the former colonial power, and other members of the Western community. It receives economic aid from countries of the European Union, the United States, and various international organizations. Libya supplies aid and has an ambassador resident in N'Djamena. Other resident diplomatic missions in N'Djamena include the embassies of Algeria, Cameroon, Central African Republic, China, Democratic Republic of the Congo, Egypt, France, Germany, Nigeria, Russia, Sovereign Military Order of Malta, South Africa, Sudan, Taiwan, the United States, and the European Economic Community. A number of other countries have nonresident ambassadors. In 1988, Chad recognized the State of Palestine, which maintains a mission in N'Djamena. Chad has not recognized the State of Israel. Although relations with Libya improved with the advent of the Deby government, strains persist. Chad has been an active champion of regional cooperation through the Central African Economic and Customs Union, the Lake Chad and Niger River Basin Commissions, and the Interstate Commission for the Fight Against the Drought in the Sahel. On February 8, 2006 the Tripoli Agreement, an attempt to end border related disputes between Chad and Sudan, was signed by Deby and Sudanese leader Al-Bashir at a summit hosted by Libyan leader Gaddafi. Following several violent confrontations between Chadian Government troops and rebels in the east, Deby broke off diplomatic ties with Al-Bashir, who he accused of backing Chadian rebels. Due to the gravity of the humanitarian crisis caused by these violent conflicts, the UN authorized the deployment of an EU peacekeeping force of 3,700 on September 25, 2007. On February 2, 2008 rebels infiltrated N'Djamena, surrounding the Presidential Palace, forcing the evacuation of U.S. Embassy personnel, and stalling the arrival of the peacekeeping presence. A cease-fire agreement was tentatively reached on February 5, 2008. Chad belongs to the following international organizations: UN and some of its specialized and related agencies; African Union; Central African Customs and Economic Union (UDEAC); African Financial Community (Franc Zone); Agency for the Francophone Community; African, Caribbean and Pacific Group of States; African Development Bank; Central African States Development Bank; Economic and Monetary Union of Central African (CEMAC); Economic Community of Central African States (CEEAC); Economic Commission for Africa; G-77; International Civil Aviation Organization; International Confederation of Free Trade Unions; International Red Cross and Red Crescent Movement; International Development Association; Islamic Development Bank; International Fund for Agricultural Development; International Finance Corporation; International Federation of the Red Cross and Red Crescent Societies; International Labor Organization; International Monetary Fund; Interpol; International Olympic Committee; International Telecommunication Union; NAM; Organization of the Islamic Conference; Organization for the Prohibition of Chemical Weapons; Universal Postal Union; World Confederation of Labor; World Intellectual Property Organization; World Meteorological Organization; World Tourism Organization; World Trade Organization. U.S.-CHAD RELATIONS Relations between the United States and Chad are good. The American embassy in N'Djamena, established at Chadian independence in 1960, was closed from the onset of the heavy fighting in the city in 1980 until the withdrawal of the Libyan forces at the end of 1981. It was reopened in January 1982. The U.S. Agency for International Development (USAID) and the U.S. Information Service (USIS) offices resumed activities in Chad in September 1983. The United States enjoys cordial relations with the Deby government. Chad has proved a valuable partner in the global war on terror, and in providing shelter to approximately 200,000 refugees of Sudan's Darfur crisis along its eastern border. Before permanently closing its Chad mission in 1995 because of declining funds and security concerns, USAID's development program in Chad concentrated on the agricultural, health, and infrastructure sectors. It also included projects in road repair and maintenance, maternal and child health, famine early warning systems, and agricultural marketing. A number of American voluntary agencies (notably AFRICARE and VITA) continue to operate in Chad. Peace Corps has traditionally had a large presence in Chad, with volunteers arriving during the postwar period in September 1987, then withdrawing in 1998. Peace Corps operations resumed in September 2003, with a group of 20 new volunteers. The second class of 17 volunteers arrived in September 2004. Both groups focused on teaching English; expansion into other areas was planned for 2005. Currently the Peace Corps presence in Chad is inactive. Principal U.S. Officials Ambassador-Louis Nigro Deputy Chief of Mission-Lucy Tamlyn Political/Economic Officer-Rebecca Daley Consular/ Officer-Franklin Garcia Management Officer-Brad Palmer Public Affairs Officer-Solomon Atayi Regional Security Officer-David Richeson Defense Attache-Lt. Col. Nicholas Lovelace The U.S. Embassy in Chad is located on Avenue Felix Eboue, N'Djamena, (tel: 235-51-70-09, 235-51-90-52, or 235-51-92-33; fax 235-51-56-54). TRAVEL AND BUSINESS INFORMATION The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable. For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov , where the current Worldwide Caution, Travel Alerts, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov . For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml . The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions. Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada. The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays. Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800. HTS anak 080225-1402565 E-KumarAna Document INDFED0020080302e4210004u
STATE DEPARTMENT ISSUES BACKGROUND NOTE ON GAMBIA 3,561 words