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#CARD:Czechoslovakia:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES:  CZECHOSLOVAKIA

February 1990
Official Name:  Czechoslovak Socialist Republic

PROFILE
Geography
Area:  127,896 sq. km. (49,381 sq. mi.); about the size of New York.
Cities:  Capital-Prague (pop. 1.2 million).  Other cities-Bratislava
(413,000), Brno (385,000), Ostrava (327,000), Kosice (220,000), Plzen
(Pilsen-175,000).  Terrain:  Rolling area in wet, low mountains to the
north and south, hills in the center, rugged mountains in the east.
Climate:  Temperate.

People
Nationality:  Noun and adjective-Czechoslovak(s).  Population (1988):
15.6 million.  Annual growth rate:  0.25%.  Ethnic groups:  Czech (64%),
Slovak (31%), Hungarian, Polish, Ukrainian, German.  Religions:  Roman
Catholic, Protestant, Orthodox, Jewish.  Languages:  Czech, Slovak,
Hungarian.  Education:  Literacy-99%.  Health:  Life
expectancy-males-67.5 yrs; females-75 yrs.  Work force (7.8 million):
Agriculture-14%. Industry, construction, and commerce-64%. Services and
government-22%.

Government
Type:  socialist republic.  Independence:  Czechoslovak state
established 1918. Constitution:  July 11, 1960 (being redrafted during
1990).
Branches:  Executive-president (chief of state), prime minister (head of
government), cabinet.  Legislative-bicameral Federal Assembly.
Judicial-Supreme Court (1960), Constitutional Court (1968).
Political parties:  With free parliamentary elections set for 1990, many
new parties are emerging to challenge the Czechoslovak Communist Party
for power.  Suffrage:  Universal over 18.
Administrative subdivisions:  Two semiautonomous "republics"-Czech
Socialist Republic (Bohemia, Moravia), Slovak Socialist Republic
(Slovakia); 10 administrative districts and 2 city administrations.
Defense:  7% of 1987 state budget.
Flag:  A blue triangle extending the length of the staff side, with its
apex toward the center, a white band on the upper half of the remaining
space, and a red band on the lower half.

Economy
GNP (1987):  $107 billion.  Annual growth rate (1987 est.):  2.6%.  Per
capita income (1987): $6,900.
Natural resources:  Coal, coke, timber, lignite, uranium, magnesite.
Agriculture (7% of GNP):  Products-wheat, rye, oats, corn, barley,
potatoes, sugar beets, hogs, cattle, horses.
Industry (60% of GNP):  Types-iron and steel, machinery and equipment,
cement, sheet glass, motor vehicles, armaments, chemicals, ceramics,
wood, paper products.
Trade (1987):  Exports-$8.4 billion:  machinery, iron and steel,
chemicals, raw materials, consumer goods.  Imports-$8.4 billion:
machinery, equipment, raw materials, consumer goods.  Partners-Austria,
Bulgaria, East Germany, West Germany, Hungary, Romania, Soviet Union,
Yugoslavia.
Exchange rates (January 1990):  38 crowns=U.S. $1.

Membership in International Organizations
 UN and its specialized agencies, Council for Mutual Economic Assistance
(CMEA), Warsaw Pact.

GEOGRAPHY
 Czechoslovakia borders on Poland and East Germany to the north, the
Soviet Union to the east, Hungary and Austria to the south, and West
Germany to the west.
 Czechoslovakia's three principal regions are Bohemia, Moravia, and
Slovakia.  Bohemia, the westernmost region, is politically and
economically the most important part of the country.  Its largest city,
Prague, is Czechoslovakia's capital.  The landscape consists of rolling
plains, hills, and plateaus surrounded by low mountains to the north,
west, and south.
  Moravia, the central region, has important coal and steel industries
in the north and agricultural areas in the south.  It is bordered on the
north by mountains and generally has more hills than Bohemia.  Bohemia
and Moravia make up the historic Czech lands, now forming the Czech
Republic.
  Slovakia, in the east, has rugged mountains in the central and
northern part and lowlands in the south that are important for
agriculture.  Traditionally less developed politically, economically,
and culturally, Slovakia has become more important since
Czechoslovakia's independence; it now forms the country's second
republic.
   Before World War II, Czechoslovakia encompassed a fourth region,
Ruthenia, in the Transcarpathian Ukraine.  The Soviet Union annexed that
section after the war under a treaty between Prague and Moscow.
 The climate in most of Bohemia and Moravia is temperate.  Lush springs
and pleasant autumns alternate with cool summers (average July
highs-lows: 740-580F) and cold, overcast winters (average January
highs-lows: 340-250F).  Slovakia is characterized by wider
extremes-warmer summers in the south and colder, more severe winters in
the mountains in the north.  Precipitation in Prague is low-about 51
centimeters (20 in.) annually.

PEOPLE
 The 15.6 million people of Czechoslovakia include about 65% Czechs and
30% Slovaks.  Although the Slovaks are a nationality distinct from the
Czechs, most favor working with the Czechs in a common federal state
with extensive autonomy for Slovakia.
 Other ethnic groups include about 600,000 Hungarians in Slovakia,
smaller numbers of Ukrainians, Germans, and Poles, and about 250,000
gypsies, the fastest growing ethnic element in the population, who live
mainly in Slovakia.
 Although the government has a regulatory role in religious
organizations, laws promulgating religious freedom were passed in late
1989.  The major denominations and estimated memberships are the Roman
Catholic Church (10.5 million), the Czechoslovak Hussite Church
(400,000), the Slovak Lutheran (Evangelical) Church (400,000), the
Evangelical Church of the Czech Brethren (265,000), the Greek Catholic
Church (450,000), and the Eastern Orthodox Church (150,000). About
10,000 Jews remain of the prewar population of 360,000.

HISTORY
 The Czechs lost their national independence to Austria in 1620 at the
Battle of White Mountain and, for the next 300 years, were ruled by the
Austrian monarchy.  With the collapse of the monarchy at the end of
World War I, an independent country of Czechoslovakia was formed with
the assistance of President Woodrow Wilson.  The Slovaks, ruled by the
Hungarians for 1,000 years, joined in the common country with the
Czechs.  The Slovaks were not at the same level of economic and
technological development as the Czechs, but the freedom and opportunity
found in the new Czechoslovak Republic enabled them to make rapid
strides toward overcoming these differences.
 Although Czechoslovakia was the only East European country  that
remained an effective parliamentary democracy throughout 1918-38, it was
plagued with minority problems, the most important stemming from the
country's large German population. Constituting more than 22% of the
population and largely concentrated in the Bohemian and Moravian border
regions (the Sudetenland), this minority was encouraged to reject
Czech-German reconciliation in the new Czechoslovak country by
nationalistic elements urged on in large part by Nazi Germany.  Internal
and external pressures culminated in September 1938, when, at Munich,
France, Italy, and the United Kingdom acceded to Nazi pressure and
agreed to force Czechoslovakia to cede the Sudetenland to Germany.
Fulfilling Hitler's aggressive designs on all of Czechoslovakia, Germany
invaded what remained of Bohemia and Moravia in March 1939, established
a German "protectorate," and created a puppet state out of Slovakia.
 With the support of Slovak communists, Slovak democratic forces
engineered a revolt in the summer of 1944.  It failed because of German
military action and the Soviet refusal to intervene or to permit more
than token U.S. and British help (including a U.S. Air Force airlift of
supplies and an Office of Strategic Services mission).  Soviet troops
overran all of Slovakia and Moravia and much of Bohemia, including
Prague, were overrun in the winter and spring of 1944-45.  U.S. forces
liberated the city of Plzen and most of western Bohemia in May 1945.  In
Prague, a civilian uprising against the German garrison had taken place
in early May 1945.  Following Germany's surrender, some 2.5 million
ethnic Germans were expelled from Czechoslovakia.
 From May 1945 until the spring elections of 1946, the country was ruled
by a coalition government that included Communist Party members. The
democratic elements, led by President Eduard Benes, hoped the Soviet
Union would allow Czechoslovakia freedom to choose its own form of
government, and aspired to a Czechoslovakia that would act as a bridge
between East and West. This objective was sustained by Czechoslovakia's
highly developed economy, its strong democratic traditions, and its
readiness to accept considerable socialization of the economic system.
The Communist Party, however, which won 38% of the vote in the 1946
election, held most of the key positions and gradually managed to
neutralize or silence anticommunist forces. Although the Benes
government initially hoped to participate in the Marshall Plan, it was
forced by Moscow to back out. Under the cover of superficial legality,
the communists seized power in February 1948.
 After extensive purges modeled on the Stalinist pattern in other East
European states, the Communist Party tried 14 of its former leaders in
November 1952 and sentenced 11 to death.  For more than a decade
thereafter, the Czechoslovak communist leadership was characterized by
its stability of tenure under the leadership of party chief Antonin
Novotny.
 The 1968 Soviet Invasion The communist leadership allowed only a little
relaxation in the early 1960s.  However, in the mid-1960s, discontent
arose within the ranks of the Communist Party Central Committee because
of the slow pace of economic reform, resistance to cultural
liberalization, and the desire of Slovaks within the leadership for a
larger share of the country's investment resources.
 The discontent culminated with the removal of Novotny from party
leadership in January 1968 and from the presidency of the republic in
March.  He was replaced as party leader by a longtime, Soviet-educated
party activist of Slovak origin, Alexander Dubcek, and as president by
Gen. Ludvik Svoboda, a military hero of both world wars.  In addition to
Novotny, many other orthodox communists were subsequently forced from
party and government positions.
 After January 1968, the Dubcek leadership began practical steps toward
political, economic, and social reforms that promised a better life for
the Czechoslovak people.  In addition, it called for politico-military
changes in the Soviet-dominated Warsaw Pact and Council for Mutual
Economic Assistance (CEMA).  The leadership affirmed its loyalty to
socialism and the Warsaw Pact but also expressed  the desire to improve
relations with all countries of the world regardless of their social
systems.
 A program adopted in April 1968 set guidelines for a modern,
humanistic-socialist democracy that would guarantee freedom of religion,
speech, press, assembly, and travel; insulate the government from the
Communist Party; create independent courts; introduce multiple-choice,
secret-ballot elections; and effect economic reforms.  After 20 years of
little participation, the public gradually began to take an interest in
the government and leadership.  Dubcek became a popular national figure
and the first Czechoslovak communist leader to enjoy broad public
support.
 Internal reforms and foreign policy statements of the Dubcek leadership
created great concern among some of the other Warsaw Pact communist
governments and parties.  On the night of August 20, 1968, Soviet,
Bulgarian, Hungarian, Polish, and East German troops invaded and
occupied Czechoslovakia.  The Czechoslovak Party and Government
immediately declared that the invading troops had not been invited into
the country and that their invasion was in violation of socialist
principles, international law, and the UN Charter.
 The principal Czechoslovak leaders were forcibly and secretly taken to
the Soviet Union.  Under obvious Soviet duress, the Czechoslovaks
engaged in a series of negotiations at Moscow on August 23-26, again on
October 2-3, and finally at Prague on October 16. On that day, Soviet
Premier Aleksei Kosygin, acting on behalf of all the invading countries,
and Czechoslovak Premier Oldrich Cernik signed a treaty that provided
for the "temporary" stationing of an unspecified number of Soviet troops
in Czechoslovakia.
 In November, the troops of the other countries and some of the Soviet
forces were withdrawn. In addition to accepting the "legalization" of
stationing Soviet troops in Czechoslovakia, Czechoslovak leaders were
forced to censor the media and to curb virtually all of the reforms that
Dubcek had promoted.
 Dubcek was removed as party First Secretary on April 17, 1969, and was
replaced by another Slovak, Gustav Husak.  Later, Dubcek and many allies
within the party were stripped of their other party positions in a purge
of the Communist Party that lasted until 1971 and that reduced party
membership by almost one-third.
 By October 27, 1969, the Soviets had achieved their basic objectives:
the Czechoslovak liberalization movement was dismantled; elements of the
orthodox Communist Party were back in control; and Soviet troops
remained stationed in Czechoslovakia.  On that date, General Secretary
Husak, Prime Minister Cernik, and President Svoboda signed a joint
communique with the Soviets at Moscow that justified the invasion,
accepted the Brezhnev doctrine of limited sovereignty, avowed that
stationing Soviet troops in Czechoslovakia was essential to the security
of Czechoslovakia's western borders, and opened the way for the further
integration of Czechoslovakia's economy with that of the Soviet Union.
This relationship was further formalized in a 20-year
Soviet-Czechoslovak Treaty of Friendship, Cooperation, and Mutual
Assistance signed on May 6, 1970. In May 1975, Gustav Husak replaced the
ailing Svoboda as president, retaining at the same time his position as
Communist Party General Secretary.  Milos Jakes, who presided over the
purge of party members after the 1968 invasion, succeeded Husak as party
general secretary in December 1987.

POLITICAL CONDITIONS
 In November 1989, student protests of police brutality ushered in a
period of rapid changes that culminated, by year's end, in a new,
noncommunist government and the election of dissident playwright Vaclav
Havel as president.  The new government ended the Communist Party's
leading role in political life, eliminated restrictions on travel
abroad, and passed legislation guaranteeing freedom of speech, freedom
of assembly, and freedom of conscience.  All political prisoners were
freed, and work began in earnest on democratic political reform.
 After Husak had consolidated the "normalization" of the post-1968
period, Czecholslovaks generally had retreated from political life.  The
roots of 1989's Civic Forum movement that effected the "gentle
revolution" can be found in human rights activism.  On January 1, 1977,
more than 250 people signed a manifesto called Charter 77 criticizing

the government for failure to implement human rights provisions of
documents it had signed, among which are the constitution; the
International Covenants on Political and Civil and Economic, Social, and
Cultural Rights; and the Final Act of the Conference on Security and
Cooperation in Europe.  Although not organized in any real sense,
Charter 77 constituted something of a citizens' initiative aimed at
inducing the Czechoslovak Government to observe its formal obligations
to respect the human rights of its citizens.
 To stifle opposition, Husak subjected Charter 77 signatories and other
"dissident" groups to periodic harassment and persecution.  This
included both judicial and nonjudicial measures, ranging from loss of
job or denial of educational opportunities for children to detention,
trial, and imprisonment. The government also induced or forced human
rights activists into exile abroad and deprived them of their
citizenship.
 In October 1979, the government staged a "subversion" trial of six
leading activists of the Committee for the Defense of the Unjustly
Persecuted as a warning to other "dissidents." As political tension in
neighboring Poland mounted during 1980-81, the government, perhaps
fearing a "spillover" effect, became increasingly repressive in its
treatment of Charter 77 and other activists.  In March 1987, government
efforts to neutralize the Jazz Section of the Czech Musicians' Union,
which sought to promote freedom of cultural expression, resulted in the
trial of several of the section's leaders after months of detention.
 Despite persecution, Charter 77 had grown to at least 1,500 signatories
in 1989. More important, the charter had become only one of many
independent initiatives critical of the government.  These new groups
helped launch a series of peaceful demonstrations by thousands of
citizens in Prague in late 1988 and early 1989 that drew worldwide
attention and a strong government response. The regime forcibly
dispersed a series of demonstrations in January 1989 and subsequently
imprisoned several prominent human rights activists, including Havel who
served 4 months in prison on charges of incitement.
 In the events of November 1989, these disparate groups united to become
Civic Forum, an umbrella group championing bureaucratic reform and civil
liberties.  Civic Forum quickly gained the support of millions of
Czechs, as did its Slovak counterpart, Public Without Violence.  Faced
with overwhelming repudiation by the population, the Communist Party all
but collapsed.  Its leaders, Husak and party chief Milos Jakes, resigned
in December 1989.

GOVERNMENT
 A coalition government in which the Communist Party has a minority of
ministerial portfolios was formed in December 1989.  The government is
drafting a new constitution to replace the one promulgated on July 11,
1960.   A 1968 law revised some sections to establish more equitable
representation between Czechs and Slovaks in federal bodies and in
economic development.  The law canceled the historic preferential
treatment of Czech lands by increasing the autonomy of national (Czech
and Slovak) organizations in the formation, administration, and
operation of the economy.  In practice, however, exercise of political
power resembles a unitary system more than a federal one.
 In Czechoslovakia, a distinction is made between the federal government
and the national government.  Czechoslovakia has two national
governments-the Czech and the Slovak-and one federal government for the
entire country.
 The bicameral Federal Assembly, which was reconstituted from a
unicameral legislature on January 1, 1969, is nominally the highest
organ of state authority.  The Chamber of the People consists of 200
deputies elected by districts based on population; the Chamber of the
Nations consists of 150 deputies, of whom 75 are elected by the Czech
National Council and 75 by the Slovak National Council.  The two bodies
are bridged by the chairman of the Federal Assembly and two deputies who
chair the chambers.  The consent of both chambers is required to pass a
law. The number of majority votes needed to pass a bill depends on the
kind of bill under consideration and on the chamber voting.
 The election law of July 1971 lengthened the terms of the deputies from
4 to 5 years.  Legislative reforms under way in 1990 are likely to
produce parliamentary representation similar to Western democracies.
Until that time, the Chamber of the People will continue to represent
the National Front, a coalition of political parties and mass
organizations controlled by the Communist Party.  Apart from the
Czechoslovak and the Slovak communist parties, four others are, in
theory, noncommunist.  In the second chamber, the Chamber of Nations,
members currently are selected by the National Councils, the legislative
bodies of the Czech and Slovak Republics.
 Administrative and executive powers are vested in the cabinet and the
president of the republic.  The president is elected by the Federal
Assembly for a 5-year term. With the approval of the Federal Assembly,
the president appoints a cabinet including a prime minister as head of
government.
 The country's highest court is the Supreme Court, elected by and
responsible to the Federal Assembly. The lower courts are elected by the
districts and counties.  In 1990, Czechoslovakia will reform its
judicial system to introduce Western-style legal rights for individuals.

Principal Government Officials
President-Vaclav Havel
Prime Minister-Marian Calfa
Deputy Prime Ministers-Valtr Komarek, Jan Carnogursky, Vladimir Dlouhy

Ministers
Foreign Affairs-Jiri Dienstbier
National Defense-Gen. Miloslav Vacek
Finance-Vaclav Klaus
Foreign Trade-Andrej Barcak
Interior-Richard Sacher Premier,
Czech Socialist Republic-Frantisek Pitra
Premier, Slovak Socialist Republic-Milan Cic
Ambassador to the United States-Rita Klimova

 Czechoslovakia maintains an embassy in the United States at 3900
Linnean Avenue, NW, Washington, D.C. 20008 (tel. [phone]).

DEFENSE
 A major overhaul of Czechoslovak defense forces is underway in 1990.
At the end of 1989, regular forces totaled about 200,000 and included:
 --  The army, with 145,000 members organized into 5 tank divisions, 5
motorized rifle divisions, 1 airborne regiment, and 1 artillery
division; and
 --  The air force, with 55,000 members organized into air defense, and
a tactical air army, each with two air divisions.
 --  Border guard and interior guards, with 35,000 members, and the
people's militia, with 120,000 members.
 Compulsory military training for men required service of 2 years in the
army, 3 years in the air force, or 27 months in the border and interior
guards.
 As a charter member of the Warsaw Pact (May 1955), Czechoslovak forces
are subject to the command and direction of the Warsaw Pact commander,
always a Soviet officer.  At the end of 1989, about 80,000 Soviet
troops, including 5,000 air force personnel, were stationed in
Czechoslovakia.  Czechoslovak-Soviet discussions on Soviet troop
withdrawals began in January 1990.

ECONOMY
 Czechoslovakia has a developed, but gradually deteriorating,
industrialized economy.  Its strong industrial tradition dates to the
period when Bohemia and Moravia were the industrial heartland of the
Austro-Hungarian empire.  Today, this heritage is an asset and a
liability.  Czechoslovakia has a well-educated population and a
developed transport system, but much of its plant and equipment,
inadequately modernized in almost 40 years of communist rule, is among
the oldest in Europe.  The country's centrally planned economy is
tightly linked with the Soviet Union and other East European countries,
although the coalition government challenged traditional ties with its
East Bloc neighbors at the January 1990 CEMA conference in Sofia.  The
economy is characterized by low growth, low technological
sophistication, and structural imbalances caused by inappropriate
investment decisions over the last 40 years.
 Czechoslovakia is deficient in energy resources and many raw materials.
Its major natural resources are coal (brown and hard), timber, and
uranium. Its main agricultural products include sugar beets, fodder
roots, potatoes, wheat, and hops.
 Principal industries are heavy and general machine-building, iron and
steel production, metalworking, chemicals, electronics, transport
equipment, textiles, glass, beer brewing, china, ceramics, and
pharmaceuticals.
 The gross national product (GNP) was approximately $107 billion in
1987, amounting to about $6,900 per capita. GNP grew steadily during the
early and mid-1970s, stagnated during the years 1978-82, and resumed
modest growth of about 2.5%-3% a year in 1983.
 At the time of the 1948 communist takeover, Czechoslovakia had a
balanced economy and one of the higher levels of industrialization in
Europe. In 1948, the government began to stress heavy industry over
agriculture and consumer goods and services. Many basic industries and
foreign trade, as well as all domestic wholesale trade, had been
nationalized before the communists took power.  Nationalization of most
retail trade was completed in 1950-51.  Exceptions to private ownership
in these sectors are negligible and consist mainly a few artisans.
Collectivization of agriculture began in 1949.  Today, all but about
7%-8% of the agricultural land is in the "socialist sector," either in
state farms or in state-run cooperatives.
 Heavy industry received major economic support during the 1950s, but
waste and inefficient use of resources resulted from the adaptation of
centralized planning techniques to the complex industrial sector.
Although the labor force was traditionally skilled and efficient,
inadequate incentives for labor and management contributed to a high
labor turnover, low productivity, and unsatisfactory quality.  Economic
failures reached a critical stage in 1963.
 A period of de-Stalinization and economic reform was launched during
1963-67.  Proposed reforms involved decentralized decisionmaking,
including greater freedom for managers to set prices, production levels,
investments, and wages.  The new mechanisms were invoked with
insufficient preparation and failed to receive support from some
important elements in the Communist Party and from many economic
officials and planners.  Inflationary pressures began to develop, and
wholesale prices were permitted to rise rapidly in 1967.  Firms were
making substantial profit without having to improve productivity or
quality of output.
 Hope for more wide-ranging economic reform came with Dubcek's rise in
January 1968.  Under his leadership, Czechoslovakia could not
immediately come to grips with inflationary forces, much less begin the
immense task of correcting the economy's basic
problems-overconcentration on heavy industry, low productivity, lack of
modern equipment, and inferior quality.
 Any opportunity the Dubcek leadership might have had to place economic
reform on a sounder footing was cut short by the 1968 invasion, which
brought renewed strains on the balance of payments.  Although industrial
production improved during the immediate period after the invasion,
inflationary panic-buying continued, and worker productivity fell as
demoralization spread.
 Price increases and wage controls implemented under Husak's leadership
reduced inflationary pressures and, to some extent, increased
productivity.  Unfulfilled targets in housing construction and
inadequate supplies of fuels and power continued.  High rates of
absenteeism continued to reveal the attitude of workers.
 The economy grew during the 1970s but stagnated between 1978 and 1982.
The Czechoslovak approach to its economic problems has been to continue
to uphold central planning.  After a 3-year (1978-80) experiment
involving about 15% of the economy, in January 1981 the regime
introduced a "Set of Measures" to improve management of the production
process.  Its general goals were to improve export performance and the
quality of production, with particular emphasis on economizing on labor,
materials, and energy.  The new measures, in addition to reinforcing
central planning and controls, included a system of rewards and
penalties intended to distinguish the performance of enterprises and
workers. Ideological campaigns were maintained to diminish apathy and
aversion to the incentive system.  The leadership later acknowledged
that the "Set of Measures" failed to stimulate exports, achieve
efficiency, or promote technological innovation.
 The economy grew after 1982, achieving annual average output growth of
more than 3% in 1983-85.  Imports from the West were curtailed, exports
boosted, and hard currency debt reduced substantially.  New investment
was made in electronics, chemicals, and pharmaceuticals, and these
sectors were industry leaders by 1986.  But the economy remains troubled
by central planning and stifling bureaucracy, which produced low exports
and productivity, and overreliance on the Soviet Union and other CEMA
countries as sources of raw materials and as markets for goods.  A
recent decline in imports from the Soviet Union and problems in trade
with some other CEMA members, caused in part by their unwillingness to
accept poor-quality products, may foreshadow a gradual change in the
pattern of trade.
 Economic reform is the greatest hurdle facing the post-1989 government.
 Although sweeping structural changes that would increase the role of
market forces are being prepared, introduction of those changes is
proceeding slowly and cautiously.
 About 80% of Czechoslovakia's trade is with other communist countries.
The Soviet Union alone accounts for about 45% of Czechoslovak trade and
supplies the country with almost all of its oil, natural gas and iron
ore, as well as many other key raw materials.  To secure these
resources, Czechoslovakia is investing large amounts in natural gas, and
iron ore extraction projects in the U.S.S.R.  In return, Czechoslovakia
supplies machines and other industrial products to the U.S.S.R.  After
the Soviet Union, Czechoslovakia's major trading partners are East
Germany, Hungary, and Poland.  Among Western countries, Austria, West
Germany, and Switzerland account for the largest share.  In 1987, U.S.
imports from Czechoslovakia totaled $86 million, and U.S. exports
totaled $47 million at the official rate of exchange.
 Post-1989 Czechoslovakia had made  expanded trade with the West an
explicit policy in an effort to join the global economy.  Austrian and
West German firms already have increased activities in Czechoslovakia,
and U.S. businesses have revived their interest.
 The government has justified itself largely by its efforts to improve
the material welfare of the population.  The standard of living is
difficult to measure, but it is certainly high in comparison to other
Eastern bloc countries.   Unemployment has been virtually nonexistent,
the result of inefficient use of labor.  About 7.8 million people, or

half the population, are employed.  Women make up about 47% of the labor
force.  Workers receive ample fringe benefits and an extensive social
security program.  Food and consumer goods, although by no means
abundant, are in good supply, and the level of automobile ownership is
the highest in Eastern Europe.
 In January 1990, the government introduced a series of  legislative
changes designed to increase enterprise autonomy, efficiency and
productivity.  These changes could improve economic performance, but
government experts agree that more substantial reform on private
property, currency, investment, and financial institutions is needed.

FOREIGN RELATIONS
 The foreign policy of Czechoslovakia had, until 1989, followed that of
the Soviet Union, the result of the Soviet presence in Czechoslovakia,
and the country's economic and military ties to the Soviet bloc.  Since
the beginning of 1990, Czechoslovakia has sought to carve a niche as a
small power serving as a bridge among its neighbors.
 Czechoslovakia is a member of the United Nations and participates in
its specialized agencies.  It also is a member of the General Agreement
on Tariffs and Trade (GATT).  Czechoslovakia maintains diplomatic
relations with more than 100 countries, of which 63 have permanent
representation in Prague.

U.S.-CZECHOSLOVAK RELATIONS
 President Woodrow Wilson and the United States played a major role in
the establishment of the state of Czechoslovakia on October 28, 1918.
President Wilson's 14 Points, including the right of ethnic groups to
form their own states, were the basis for the Czechs and Slovaks joining
to form the Czechoslovak state.  Tomas Masaryk, the father of the state
and its first president, visited the United States during World War I
and worked with U.S. officials in developing the basis of the new
country.  He used the U.S. Constitution as a model for the first
Czechoslovak Constitution.
 Since before the founding of the Czechoslovak state, the U.S.
Government and people have maintained a friendly and sympathetic
attitude toward the Czech and Slovak people.  Millions of Americans have
their roots in the Czech lands and Slovakia, and a large community in
the United States has strong cultural and family ties with
Czechoslovakia.
 After World War II and the return of the Czechoslovak
government-in-exile, normal relations were continued until 1948, when
the communists seized power.  Relations cooled rapidly.
 The Soviet-led invasion of Czechoslovakia in August 1968 further
complicated U.S.-Czechoslovak relations.  The United States referred the
matter to the UN Security Council as a violation of the UN Charter.  In
a report to Congress, Secretary of State William P. Rogers condemned the
invasion as an infringement of Czechoslovakia's sovereignty and stressed
that improvement in East-West relations must be based on respect for the
principles of sovereign equality, political independence, and the
territorial integrity of each European state, regardless of its
political or social system.
 Despite cool relations, both sides decided in the fall of 1972 on
limited steps aimed at solving some problems. Negotiations were begun on
a consular convention, a trade agreement, an accord on financial issues
dating back to World War II, an exchanges agreement, and an accord to
open consulates in Bratislava and Chicago.  The discussions failed to
produce results.
 The 1980s saw modest improvement in U.S.-Czechoslovak relations at the
official level.  In 1982, agreement was reached to resolve outstanding
financial issues, including compensation from Czechoslovakia for the
U.S. citizens and corporations whose properties were nationalized after
World War II and the delivery to Czechoslovakia of its share of the gold
recovered from Germany and other countries by the Allies at the end of
the war.  The gold was in the custody of a tripartite (United States,
United Kingdom, and France) commission established by international
agreement to allocate the pool of recovered gold among the countries
from which gold was stolen by the Nazis.  The United States blocked the
gold identified by the commission for delivery to Czechoslovakia pending
a settlement of the nationalization claims.
 Another lengthy negotiation was concluded in 1986 when the United
States and Czechoslovakia signed the first exchanges between the two
countries. The agreement provides for exchanges in culture, education,
science, technology, and other fields.  In addition, the
U.S.-Czechoslovak Consular Convention, signed in 1973, was finally
brought into force by an exchange of instruments of ratification in
October 1987.
 With the "gentle revolution" of 1989, bilateral relations have improved
markedly.  Dissidents once sustained by U.S. encouragement and human
rights policies reached high levels of government.  In 1990, both
governments are moving rapidly to forge close ties.
 U.S.-Czechoslovak trade, hindered by Czechoslovakia's failure to
qualify for most-favored-nation tariff status and its trade orientation
toward the Soviet Union and other CEMA countries, was stagnant until the
events of 1989.  Of $47 million in U.S. exports to Czechoslovakia in
1987, cattle hides and fertilizers accounted for almost half.  The
United States purchased $11 million in glassware from Czechoslovakia in
1987.  Other leading imports included leather footwear, hops and beer,
and small tractors.  In 1990, as part of the general development of
warmer relations, prospects for improved trade relations and mutual
economic cooperation increased rapidly.

Principal U.S. Officials
Ambassador-Shirley Temple Black
Deputy Chief of Mission-Theodore E. Russell
Counselor for Political and Economic Affairs-Clifford G. Bond
Press and Cultural Affairs Officer (USIA)-Thomas Hull
Economic Affairs Officer-Harvey D. Lampert
Commercial Officer-Janet G. Speck
Consul-Richele Keller
Defense Attache-Col. Edwin Motyka
Administrative Officer-Steven J. White

 The U.S. Embassy is located at Trziste 15, Prague (tel. [phone]).

Travel Notes
 Climate and clothing:  The climate is most pleasant during May-August;
smog and dampness prevail in November-March.  Bring rainwear and
lightweight or heavy woolens depending on the season.
 Customs and currency: U.S. citizens must have visas. Tourist visas,
valid for one entry, usually can be obtained within 2 weeks.  Visas
require the tourist, upon entry, to purchase 30 West German marks (about
$17 at the exchange rate of early 1990) a day in Czechoslovak crowns.
Crowns may not be imported or exported.
  Health:  No unusual health precautions need be taken in Prague;
however, visitors coming from areas where yellow fever or cholera are
endemic must have proper inoculations.  Tapwater is usually safe.  Bring
any needed medications.
 Telecommunications:  Telephone and cable service is adequate.
Czechoslovakia is six standard time zones ahead of eastern standard
time.  Because of higher Czechoslovak rates, phone calls to the United
States should be made collect, if possible.
  Transportation:  Czechoslovakia has a wide network of bus, rail, and
air services.  Prague has a subway and streetcars, and trolley buses
serve cities and suburbs.  Taxis and rental cars are available. Main
roads are adequate.

 Published by the United States Department of State --  Bureau of Public
Affairs  -- Office of Public Communication --  Editorial Division --
Washington, D.C.-- February 1990 Editor:  Jim Pinkelman
 Department of State Publication 7758 Background Notes Series  -- This
material is in the public domain and may  be reprinted without
permission; citation of this source is appreciated. For sale by the
Superintendent of Documents, U.S. Government Printing Office,
Washington, D.C.  20402.  (###)


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