Wayzata World Factbook 1994/World Factbook - 1994 Edition - Wayzata Technology (1994).iso/pc/text/txtfiles/spain.bkg

Text File | 1994-04-07 | 39KB | 649 lines

#CARD:Spain:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES:  SPAIN

April 1991
Official Name:  Kingdom of Spain

PROFILE
Geography
Area:  504,750 sq. km. (194,884 sq. mi.) including the Balearic and
Canary Islands; about the size of Arizona and Utah combined.  Cities:
Capital-Madrid (pop. 3.1 million in 1987, the most recent official
Spanish estimate).  Other cities-Barcelona (1.7 million, 1987), Valencia
(732,491, 1987), Seville (655,435, 1987), Zaragoza (575,317, 1987),
Bilbao (382,413, 1987), Malaga (566,330, 1987). Terrain: High plateaus
and mountains.  Climate:  Seasonably variable, dry; temperate in
northwest.

People
Nationality:  Noun-Spaniard(s).  Adjective-Spanish.  Population: 39
million (1990 est.).  Annual growth rate:  0.3%.  Density:  202/sq. mi.
Ethnic group:  Mediterranean and Germanic composite.  Religion:
Predominantly Roman Catholic.  Languages:  Spanish (official), Catalan
17%, Galician 7%, Basque 2%.  Education:  Compulsory to age 16;
literacy-97%.  Work force (14.8 million, 1989):  Agriculture-16.7%;
industry-24.8%; construction-7.4%; services-51.1%.

Government
Type:  Constitutional monarchy (Juan Carlos I proclaimed king November
22, 1975).
Branches:  Executive-prime minister nominated by monarch, subject to
approval by democratically elected Congress of Deputies.
Legislative-bicameral Cortes:  Congress of Deputies, 350 seats elected
by the d'Hondt system of proportional representation; Senate, 4 senators
elected in each of 47 peninsular provinces and 16 from the 3 island
provinces; Ceuta and Melilla elect 2 each (total 208).  The 17
autonomous regions also appoint 1 senator and 1 additional senator for
each 1 million inhabitants within their territory (about 20).
Judicial-Constitutional Tribunal has jurisdiction over constitutional
issues.  Supreme Tribunal heads system comprising territorial,
provincial, regional, and municipal courts.
Subdivisions:  47 peninsular, 3 island provinces; 2 enclaves on the
Mediterranean coast of Morocco (Ceuta and Melilla); and 3 island groups
along that coast-Alhucemas, Pelon de Velez de la Gomera, and the
Chafarinas Islands.
Political parties:  Spanish Socialist Workers Party (PSOE), Popular
Party (PP), Social and Democratic Center (CDS), and three communist
parties, the largest of which is the Spanish Communist Party (PCE)
grouped in the United Left coalition (IU).  Key regional parties are the
Convergence and Union (CIU) in Catalonia and the Basque National Party
(PNV) in the Basque country.
Central government budget (1988):  Revenues-$67.9 billion.
Expenditures-$77.5 billion.
Defense:  9.1% of FY 1988 budget.
Flag:  Two red horizontal bands separated by a wider yellow band; the
national coat of arms, centered, shows the royal seal framed by the
Pillars of Hercules (the two promontories on either side of the eastern
end of the Strait of Gibraltar).

Economy
GDP (1989):  $380 billion.  1990 projected:  $489 billion.  Annual
growth rate (1989):  4.9%.  Per capita GDP (1989):  $9,708.  1990
projected:  $12,442.
Natural resources:  Coal, lignite, iron ore, uranium, mercury, pyrites,
fluorspar, gypsum, zinc, lead, tungsten, copper, kaolin, hydroelectric
power.
Agriculture (5.3% of GDP):  Products-grains, vegetables, citrus and
deciduous fruits, wine, olives and olive oil, sunflowers, livestock.
Industry (30.3% of GNP):  Types-processed foods, textiles, footwear,
petrochemicals, steel, automobiles, consumer goods, electronics.
Trade (1989):  Exports-$45 billion:  automobiles, fruits, minerals,
metals, clothing, footwear, textiles.  Major markets-EC 67%, US 7%.
Imports-$71 billion:  petroleum, oilseeds, aircraft, grains, chemicals,
machinery, transportation equipment, fish.  Major sources-EC 57%, US 9%.

Official exchange rate (as of 9/90):  98 pesetas = US $1.
Fiscal year:  Calendar year.

Membership in International Organizations
 UN and its specialized agencies, North Atlantic Treaty Organization
(NATO), Western European Union (WEU), European Community (EC), European
Organization for Economic Cooperation and Development (OECD), Conference
on Security and Cooperation in Europe (CSCE), INTELSAT, World Tourism
Organization (WTO-headquartered in Madrid), and the Council of Europe.

PEOPLE
 Spain's population density, lower than that of most European countries,
is roughly equivalent to New England.  In recent years, following a
long-standing pattern in the rest of Europe, rural populations are
moving to cities.
 Spain has no official religion.  The constitution of 1978
disestablished the Roman Catholic Church, while recognizing the role it
plays in Spanish society.  More than 90% of the population are nominally
Catholic.

Educational System
 Spain's overall student population in 1986-87 was 10,746,172.  Of
these, 70% attended public schools or universities.  The remainder
(3,205,314) attended private schools or universities (35,545), the great
majority of which are operated by the Catholic Church.
 Compulsory education begins with primary school or general basic
education (EGB) for ages 6-14 and is free in public schools and in many
private schools, most of which receive government subsidies.  Following
EGB graduation, students attend either a secondary school offering a
general high school diploma or a School of Professional Education
(corresponding to grades 9-11 in the United States) offering a
vocational training program.  The Spanish university system offers
degree programs in law, sciences, humanities, and medicine, and the
Superior Technical Schools offer programs in engineering and
architecture.

Regional and Municipal Government
 The 1978 constitution authorized the creation of regional autonomous
governments.  By 1985, 17 regions covering all of peninsular Spain, the
Canaries, and the Balearic Islands had negotiated autonomy statutes with
the central government.  In 1979, the first autonomous elections were
held in the Basque and Catalan regions, which have the strongest
regional traditions by virtue of their history and separate languages.
Since then, autonomous governments have been created in the remainder of
the 17 regions.

HISTORY
 From the ninth century BC to 700 AD, Phoenicians, Greeks,
Carthaginians, and Celts entered the Iberian peninsula, followed by the
Romans, who arrived in the second century BC.   Spain's present
language, religion, and laws stem from the Roman period.  Although the
Visigoths arrived in the fifth century AD, the last Roman strongholds
along the southern coast did not fall until the seventh century.  In 711
AD, North African Moors sailed across the straits, swept into Andalusia,
and, within a few years, pushed the Visigoths up the peninsula to the
Cantabrian Mountains.  The Reconquest-efforts to drive out the
Moors-lasted until 1492, the year Columbus made his voyage to the New
World.  By 1512 the unification of present-day Spain was complete.
 In the 16th century, Spain became the most powerful nation in Europe,
due to the immense wealth derived from the Americas.  Subsequently, a
series of long, costly wars and revolts, capped by the defeat by the
English of the "Invincible Armada" in 1588, caused the steady decline of
Spanish power in Europe.  Controversy over succession to the throne
consumed the country during the 18th and 19th centuries leading to
occupation by France in the early 1800s.
 The 19th century saw the revolt and independence of most of the
American colonies; three wars over the succession issue; the brief
ousting of the monarchy and establishment of the First Republic
(1873-74); and, finally, the Spanish-American War (1898), in which Spain
lost Cuba, Puerto Rico, and the Philippines to the United States.  A
period of dictatorial rule (1923-31) ended with the establishment of the
Second Republic.  It was dominated by increasing political polarization,
culminating in the leftist Popular Front electoral victory in 1936.
Pressures from all sides, coupled with growing and unchecked violence,
led to the outbreak of the Spanish Civil War in July 1936.
 Following the victory of his nationalist forces in 1939, Gen. Francisco
Franco ruled a nation exhausted politically and economically.  Spain was
officially neutral during World War II but followed a pro-Axis policy.
The victorious Allies isolated Spain at the beginning of the postwar
period, and the country did not join the United Nations until 1955.
 Spain's economy began to recover in the 1950s, but large-scale
modernization and development did not occur until the 1960s.

GOVERNMENT AND POLITICAL CONDITIONS
 Upon the death of Gen. Francisco Franco in November 1975, Prince Juan
Carlos de Borbon y Borbon, Franco's personally designated heir, assumed
the titles of king and chief of state.  Dissatisfied with the slow pace
of post-Franco liberalization, in July 1976, the King replaced Franco's
last prime minister with Adolfo Suarez.  Suarez entered office promising
that elections would be held within one year, and his government moved
to enact a series of decree laws to liberalize the new regime.
 Spain's first elections to the Cortes (parliament) since 1936 were held
on June 15, 1977.  Prime Minister Suarez's Union of the Democratic
Center (UCD), a moderate center-right coalition, won 34% of the vote and
the largest bloc of seats in the Cortes.
 Under Suarez, the new Cortes set about drafting a democratic
constitution which was overwhelmingly approved by voters in a December
1978 national referendum.
 The democratic constitution established Spain as a parliamentary
monarchy, with the prime minister responsible to the bicameral Cortes
elected every 4 years.  After the constitution entered into force at the
end of 1978, Prime Minister Suarez called for new national elections.
The elections of March 1979 gave Suarez's UCD a large plurality but the
coalition of parties backing Suarez soon began to disintegrate.  In
January 1981, Suarez resigned, and the King nominated Leopoldo Calvo
Sotelo to replace him.  On February 23, while the Congress of Deputies
was voting on the Calvo Sotelo nomination, rebel elements among the
security forces seized the congress and tried to impose a
military-backed government.  However, the great majority of the military
forces remained loyal to King Juan Carlos, who used his personal
authority to put down the coup.  The bloodless coup attempt was over in
18 hours.  On February 25, the Congress of Deputies reconvened to
approve Calvo Sotelo's nomination as prime minister.
 In October 1982, the Spanish Socialist Worker's Party (PSOE), led by
Felipe Gonzalez Marquez swept both the Congress of Deputies and Senate,
winning an absolute majority; the government was reelected in June 1986.

 On December 14, 1988, the two largest labor union confederations, the
Socialist-affiliated General Workers Union and the communist-led
Confederation of Workers Commissions, sponsored a successful 1-day
nationwide work stoppage.   The general strike was seen as an expression
of labor union dissatisfaction with the governing PSOE's leadership as
well as a move to highlight specific union grievances.  It marked a
widening split between the labor unions and the Socialist government.
The strike was interpreted as a sign that the government had lost some
support, especially among blue-collar workers, a sector of the
electorate traditionally pro-socialist.
 Prime Minister Gonzalez again called for a general election in October
1989.  Although the PSOE retained control of the Senate the party lost
ground, both to the Popular Party on the right and the Communist-led
United Left.  On December 4, 1989, the Spanish parliament approved King
Juan Carlos' nomination of Felipe Gonzalez as prime minister for a third
term.
 The year 1992 promises to be a banner year in Spain.  The summer
Olympics are scheduled for Barcelona.  A world's fair, Expo 92, will be
held in Seville.  There will be nationwide celebrations to mark the
500th anniversary of Columbus' discovery of America and to celebrate the
contribution of Jewish and Arab cultures to Spain.  Also, Madrid has
been designated the cultural capital of Europe for 1992.

Terrorism
 The government of Spain is involved in a long-running campaign against
Basque Fatherland and Liberty (ETA), a terrorist organization founded in
1959 and dedicated to promoting Basque independence.  ETA regularly
targets Spanish government officials, members of the military and
security forces, and moderate Basques for assassination.  The group has
carried out numerous bombings against Spanish government facilities and
economic targets.  In recent years, the Spanish government has had more
success in controlling ETA due in part to increased security cooperation
with French authorities.
 In early 1989, the Spanish government held a series of meetings in
Algeria with ETA representatives in an attempt to reach an agreement
ending the campaign of terrorism.  However, the talks broke down and ETA
resumed its terrorist operations with a series of bombings on April 7,
1989, effectively ending a 3-month cease-fire.  The spring and summer of
1990 saw another significant wave of terrorist operations, with ETA and
the radical leftist group GRAPO claiming responsibility for bombings
against various public installations throughout the country.

ECONOMY
 The late 1950s marked an important turning point in Spain's modern
economic history.  Beginning in 1959, under an IMF stabilization plan,
the country liberalized trade and capital flows, particularly foreign
direct investment.  In the 3 years following implementation of the plan,
real growth in gross domestic product exceeded 10%, and from 1965-1974
Spain's 7% average annual real growth was the second fastest in the
industrialized world.  Spain was transformed into a modern industrial
economy with a thriving tourism sector.  The economic expansion led to
improved income distribution, and helped develop a large middle class.
Social changes brought about by economic prosperity and the inflow of
new ideas helped set the stage for Spain's transition to democracy
during the latter half of the 1970s.
 Despite the success of economic liberalization, Spain remained the most
closed economy in Western Europe, judged by the small measure of foreign
trade to economic activity.  Moreover, the pace of reform slackened
during the 1960s as the state remained committed to "guiding" the
economy.  Considerable public investments were made in heavy industries
such as shipbuilding and steel.  As one of the industrial world's most
energy import-dependent economies, Spain was hard hit by the oil price
shocks of 1973 and 1979.  During the mid-1970s Spain was also undergoing
a political transition to democracy.  Political uncertainties associated
with the transition kept the country from implementing policies to
adjust to the oil price shocks.  From 1975-79 foreign borrowing doubled,
and the peseta was allowed to appreciate 35% to offset the impact of the
oil price rise on domestic prices and incomes.  At a time when economic

conditions warranted a moderation of labor costs because of trade loss,
labor conflicts proliferated and real wages climbed rapidly.
 After 1975, Spain suffered 9 years of double-digit inflation.  Real
economic growth slowed dramatically to an annual average of 1.6%.  In
the face of economic and political uncertainty investment fell.
Employment contracted by over 2 million jobs from 1975-1985, and the
unemployment rate rose from 4% to 22%.

Government Policy
 When the PSOE took office in late 1982, the Spanish economy was in deep
crisis.  Balance-of-payments problems were chronic, with the current
account deficit at 2.3% of GDP.  Inflation was 14% and the unemployment
rate 16.5%.  The government deficit reached 5.6% of GDP.  Perhaps as
serious, the economy suffered from structural rigidities in labor and
capital markets, which greatly exacerbated the crisis.
 The first priority of the socialist government was to reduce the
external imbalance and to control inflation.  Its methods were orthodox
stabilization measures:  a tightening of monetary policy, sharp
devaluation of the peseta, some reduction in the public deficit, and a
move toward wage moderation.  The adjustment program began to bear fruit
in terms of lower inflation and a current account surplus, so that
austerity measures were eased after 1984.
 At the same time, the government developed programs for significant
structural economic reforms leading to industrial restructuring, greater
labor market flexibility and changes in social security financing.
While the structural reform process is ongoing, especially since Spain
joined the European Community (EC) in 1986, the progress achieved has
gone a long way toward accommodating the economy to EC membership and to
sustain relatively strong economic growth over the long term.
  Industrial Reconversion.  Several inefficient and uncompetitive
industries were part of the structural problems afflicting the Spanish
economy.  A law on reconversion and reindustrialization was approved in
1984 to strengthen these industries.  The law provided public funds,
subsidized credits, and loan guarantees to help affected firms
rationalize employment and modernize capital in sectors including
appliances, certain machinery and capital equipment, electronics,
telecommunications, fertilizers, steel, shipbuilding and textiles, which
employed more than 280,000 workers.  Although the reconversion program
extends until 1991 in some sectors, by the end of 1988 over 90% of the
89,000 superfluous jobs targeted had been cut, and 83% of the projected
cost had been spent on the program.
 Labor.  Labor market rigidities are another serious structural problem.
 In particular, the Spanish system of job security, which makes it
difficult to lay off workers without substantial indemnities, tends to
discourage firms from hiring, exacerbating the unemployment problem.  In
1984, labor agreed to legal changes which permitted hiring for new
positions under temporary contracts.  Such contracts may extend up to 3
years before an employer incurs an indefinite commitment to the
employee.  Since 1984, the vast majority of new hirings have occurred
under the temporary hiring provision.  Unemployment in 1989 declined
more than 2% to 17.3%, but as the momentum of economic expansion slows,
job creation is expected to slow as well.

Current Performance
 By 1985, economic reforms and significant improvement in the terms of
trade associated with a fall in oil prices contributed to a rebound in
employment, investment, and economic growth.  Since then, the economy
has experienced a strong, investment-led expansion.  Investment,
averaging nearly 16% per annum in real terms in 1986-88, has been
stimulated by a sharp recovery in business profitability, growing
foreign investor interest in Spain, and rising domestic business
confidence.  GDP growth averaged 4.7% per annum over the same period,
rising to over 5% 1987-88 and 4.9% in 1989.  Following the slow down
which commenced in late 1989, projected growth for 1990 is 4.1%. The
expansion must continue with above average growth rates through the turn
of the century in order to achieve the government's primary economic
objectives of eliminating the serious problem of unemployment and
raising the Spanish standard of living to the level of more advanced
European economies.
 While Spain expects to grow moderately faster than the rest of Europe
over the longer term in order to catch up, the government considers the
current rate of growth, almost 5% in real terms in 1989, to be too
strong.  After initial success in the battle to lower inflation, strong
demand pressure contributed to an acceleration of inflation in 1988 and
1989, which the government attempted, unsuccessfully, to check with a
tighter monetary policy.  The subsequent rise in interest rates caused
an appreciation of the peseta, which exacerbated a growing trade
deficit.
 Spain's trade deficit was the industrial world's third largest in
1988-89, but it is not an immediate problem because economic growth is
investment-led, and rapid growth in foreign investment assures adequate
financing.  Nevertheless, the government has become concerned over the
speed of deterioration in the trade account, as well as the threat high
domestic inflation poses to Spain's international competitiveness.
Consequently, it tightened monetary policy further in mid-1989 and
slapped on credit controls in order to cool the "heated" pace of
economic activity and thereby assure a more moderate, but more
sustainable rate of growth over the long term.
 One of the current problems is that the political dialogue over
economic policy among government, business, and labor has weakened.
Reacting to the sharp increase in profits business has enjoyed during
the current expansion, labor has become impatient to share in the
benefits and is more critical of the official emphasis on economic
growth vs. redistribution.  The dispute has prevented renewal of an
economic and social agreement, such as those signed by government,
business, and labor prior to 1987, in order to establish guidelines for
wage moderation in collective bargaining.

Spain and the European Community
 The government's economic policies must also advance the process of
integration into the European Community.  Spain's decision to join the
EC  in 1986 represented a broadly supported political determination to
identify Spain with Western European democracy and free market policy.
The economic consequences mean that Spain must continue to open its
economy, upgrade infrastructure, and adapt economic legislation to EC
norms.  Spain has been successful in most cases.  Strong economic growth
has greatly eased this process of integration.  The coincidence of
Spain's transition period with the implementation of the EC single
market adds to the challenge of integration and increases the prospects
for long term economic advantages as a result of the decision to join
the EC.
 Since joining the EC, Spanish trading patterns have shifted
dramatically.  Imports from the EC increased to 58% of the total in
1990-from 37% in 1985.  The share of Spanish exports going to EC
countries rose to 67% in 1989, up from 52% in 1985.  The US share in
Spain's trade declined sharply.  The import share is recovering (9% for
1989, up from 8.3% in 1987).  The 1989 exports share was 7.4%, down from
8% in 1987.  The United States continues to maintain a large trade
surplus with Spain ($6.5 billion exports vs. $3.3 billion imports in
1989).  EC participation in foreign investment in Spain has climbed
significantly to 55% of registered new foreign direct investment, while
the US share has slipped even as US investment in absolute terms has
steadily increased.
 With Spain's economic future now closely linked to the European
Community and Spain's integration into the EC proceeding smoothly, the
Spanish government has become one of the community's most committed
advocates of deeper European integration.  In June 1989, at the end of a
successful 6 months in the EC presidency, the government agreed to
commit the peseta to stabilization within the European monetary system's
(EMS) exchange rate mechanism, as a first step toward eventual European
monetary integration.  The firm commitment to integration, however,
leaves the Spanish government little margin to diverge from an orthodox
mix of economic policies.  In particular, participation in the EMS
requires Spain to expand its range of economic policies by increasing
fiscal discipline and reducing reliance on monetary policy.

Industry
 Spain's leading industries are automobiles, steel, chemicals, shoes and
leather goods, clothing, and rubber products.  Tourism is also a major
industry as well as a vital source of foreign exchange.  With 50 million
foreign visitors per year, Spain is one of the world's leading tourist
countries.  Most visitors are Europeans attracted to Spain's
Mediterranean coast.  Tourism receipts were up slightly, from $16.2
billion to $18 billion in 1990, despite a 4% drop in tourist entries.
 Basic industries such as iron and steel, shipbuilding, machine tools,
and metalworking are located in the north on the Atlantic coast, in the
areas of Bilbao, Santander, Oviedo, and La Coruna/Ferrol, as well as in
the south near Cadiz.  Industries such as electronics, textiles, and
plastics have gravitated to the Catalonia region around Barcelona.
Madrid is the financial capital, the administrative center for corporate
headquarters, and a nexus for light industry and high technology.
Government coordinated efforts have dispersed some industry into
southern Spain and other less industrialized areas, in conjunction with
regional development and diversification programs which now benefit from
EC development funds.
 A long-term objective of the Spanish government is to increase the
efficiency of state commercial enterprises such as the national railroad
(RENFE) and the state-owned holding company, the Instituto Nacional de
Industria (INI), which suffer from heavy losses.  INI was responsible
for an earlier period of heavy industrialization in steel production,
shipbuilding, civil aviation, defense industries, and many other areas.
More recently, INI has been heavily involved in the process of
industrial reconversion.  Current plans for INI call for an end to
government subsidies after 1992.  The Spanish government has also moved
to privatize a number of unprofitable public enterprises and others not
essential to its commercial strategy.  In some cases minority
participation in public enterprises, such as the state petroleum
company, has been sold through shares to the public.

Foreign Investment
 Foreign investment has been important to Spain's industrialization.
This is especially so in the automotive sector, where the investments of
Ford in Valencia and General Motors in Zaragoza and Cadiz have
contributed to making Spain the world's sixth largest automobile
exporter.  Since Spain joined the EC, foreign investment regulations
have been liberalized to satisfy EC standards, and foreign investment in
new and established plants has increased dramatically.  Volkswagen's
purchase of the Spanish automobile manufacture SEAT from the government
was one of the most significant foreign investments.  Net foreign
investment rose 11% between 1989 and 1990 from $15 billion to $16.7
billion.  The United States accounted for 4% of the 1989 total, down
from 22% in 1985.

Agricultural Production and Trade
 Although it has declined in relative importance in the overall Spanish
economy in recent decades, agriculture still accounts for more than 6%
of GDP, 13% of total employment, and 17% of total export value. Harsh
terrain and limited rainfall have contributed to the traditionally low
productivity of Spanish agriculture.  However, the significant expansion
of irrigation and other technological advances in recent years has
resulted in considerable gains in productivity, although Spain still
lags behind most other European countries.
 Agricultural productivity and the ability to compete with other nations
has taken on renewed importance following Spain's accession to the EC.
After a transition period of up to 10 years, Spain will be fully
integrated into the EC's common agricultural policy, and agricultural
trade will be permitted to flow freely between Spain and other EC
countries.  The relatively inefficient Spanish livestock sector suffers
from competition from EC imports but Spanish fruit and vegetable
producers should benefit from greater access to northern European
markets.
 Crop growing comprises nearly 60% of the value of Spain's total
agricultural production.  Grains are the most important crop, accounting
for 7.8 million hectares of the 20.1 million cultivated.  Other major
crops are olives and winegrapes, with 2.1 and 1.5 million hectares,
respectively.  Livestock and poultry production account for the
remaining 40% of agricultural production value.  Per capita meat
consumption is about 86 kilograms per year, with pork comprising about
52% of the total.
 Spain is one of the most important markets for US agricultural
products, with imports in 1989 totaling $862 million.  Corn and sorghum
have been especially important US exports to Spain.  The EC's failure to
adequately compensate the United States for the loss of these exports as
a result of Spanish accession to the community precipitated a major
trade dispute.  A negotiated settlement obligates Spain to import 2
million tons of corn and 300,000 tons of sorghum from non-EC countries
per year through 1990.  Other important Spanish agricultural imports
from the United States are soybeans, tobacco, forest products, corn
gluten feed, and cotton.  Spain's principal agricultural exports are
citrus fruits, other fresh and processed fruits and vegetables, wines,
and olive oil.

FOREIGN RELATIONS
 After the return of democracy to Spain following the death of  Gen.
Franco in 1975, Spain's foreign policy priorities were to break out of
the diplomatic isolation of the Franco years and universalize its
diplomatic relations, to enter the EC, and to define its security
relations with the West.
 Important developments in all these areas took place in 1986.  With the
normalization of diplomatic relations with Israel and Albania, Spain
virtually completed the process of universalizing its diplomatic
relations.  The only country with which it now does not have diplomatic
relations is North Korea.  Spanish entry into the EC was officially
accomplished on January 1, 1986, completing a sometimes difficult
process of negotiations over several years.  With the March 1986
referendum on NATO membership, Spain reconfirmed its 1982 decision to
become the 16th member of the NATO alliance, under specified conditions.
 Spain's EC membership is now an important part of its foreign policy.
Even on many international issues beyond Western Europe, Spain prefers
to coordinate its efforts with its EC partners through the European
political cooperation mechanism.
 Spain has maintained its special identification with Latin America.
Its policy emphasizes the concept of Hispanidad, a mixture of

linguistic, religious, ethnic, cultural, and historical ties binding
Spanish-speaking America to Spain.  Spain has been an effective example
of transition from authoritarianism to democracy, as shown in the many
trips that the Spain's king and prime ministers have made to the region.
 Spain maintains economic and technical cooperation programs and
cultural exchanges with Latin America, both bilaterally and within  the
EC.
 Spain also continues to focus attention on North Africa, especially on
Morocco.  This concern is dictated by geographic proximity and long
historical contacts, as well as by the two Spanish enclave cities of
Ceuta and Melilla on the northern coast of Africa.  While Spain's
departure from its former colony of Western Sahara ended direct Spanish
participation, Spain maintains an interest in the peaceful resolution of
the conflict brought about by decolonization.  Spain has gradually begun
to broaden its contacts with sub-Saharan Africa and consistently speaks
out against apartheid in South Africa.  Spain has a particular interest
in its former colony of Equatorial Guinea, where it maintains a large
aid program.
 In its relations with the Arab world, Spain frequently supports Arab
positions on Middle East issues.  The Arab countries are a priority
interest for Spain because of oil and gas imports and because several
Arab nations have substantial investments in Spain.
 Spain has been successful in managing its relations with its two
European neighbors, France and Portugal.  The accession of Spain and
Portugal to the EC has helped ease some of their periodic trade
frictions by putting them into an EC context.  Bilateral cooperation
against Basque ETA terrorism has also given a boost to Franco-Spanish
relations.  Ties with the United Kingdom are generally good, although
the question of Gibraltar remains a sensitive issue.  The two countries
agreed in 1984 to discuss all subjects, including sovereignty, in their
talks on the future of the British colony.  This has led to a relaxation
of border controls and greater movement of people and goods.

US-SPANISH RELATIONS
 Spain and the United States have a long history of official relations
and are now closely associated in many fields.  This association has
been cemented in recent years by the exchange of high-level visitors.
President Reagan visited Spain in May 1985, and Spanish Prime Minister
Felipe Gonzalez visited Washington in June 1983 and October 1989.  The
King and Queen of Spain have visited the United States officially on
numerous occasions, most recently in 1987 when they visited the American
southwest.  Crown Prince Felipe visited the United States in September
1989.
 In addition to US and Spanish cooperation in NATO, defense and security
relations between the two countries are regulated by a 1988 agreement on
defense cooperation (ratified in May 1989).  Under this agreement, Spain
authorizes the United States to use certain facilities at Spanish
military installations.  The principal facilities used by the United
States under the agreement are at Spanish air force installations in
Zaragoza and Moron (near Seville), and at the naval base at Rota in
southern Spain.  By May 1992, the United States will transfer from Spain
its 401st Tactical Fighter Wing at Torrejon Air Base outside Madrid.
 In addition to the bilateral defense agreement, the two countries
cooperate in several other important areas.  Under an agreement which
will remain in force until 1994 (and is subject to renewal at that
time), the US National Aeronautics and Space Administration (NASA) and
the Spanish National Aerospace Institute (INTA) jointly operate tracking
stations in the Madrid area in support of earth orbital, lunar, and
planetary exploration missions.  The Madrid tracking station is one of
the three largest tracking and data acquisition complexes supporting
NASA operations.  A separate agreement on scientific and technological
cooperation is currently under negotiation.
 An agreement on cultural and educational cooperation was signed on June
7, 1989.  A new element, support from both the public and private
sectors, gives a different dimension to the programs carried out by the
joint committee for cultural and educational cooperation.  These joint
committee activities complement the binational Fulbright program for
graduate students, postdoctoral researchers,   and visiting professors,
which, in 1989, became the largest in the world.  Besides assisting in
these exchange endeavors, the US Embassy also conducts a program of
official visits between Spain and the United States.

Principal Government Officials
Chief of State, Commander in Chief of the Armed Forces-King Juan Carlos
I
President of the Government (Prime Minister)-Felipe Gonzalez Marquez
Minister of Foreign Affairs-Francisco Fernandez Ordonez
Ambassador to the United States-Jaime de Ojeda  y Eiseley

 Spain maintains an embassy in the United States at 2700 15th Street NW,
Washington, DC 20009 (tel. [phone]) and consulates in many larger
US cities.  In summer 1991, a new chancery will open at 2375
Pennsylvania Avenue, NW, Washington, DC  20037.

Principal US Officials
Ambassador - Joseph Zappala
Deputy Chief of Mission - Edward A. Casey, Jr.
Chief, Office of Defense Cooperation - Brig. Gen. Antonio Maldonado,
USAF
Counselor for Administrative Affairs - Perry W. Linder
Counselor for Agricultural Affairs - Richard T. McDonnell
Counselor for Commercial Affairs - Robert Kohn
Counselor for Consular Affairs - Michael L. Hancock
Counselor for Economic Affairs - Pierce K. Bullen
Counselor for Political Affairs - Walter S. Clarke
Counselor for Politico-Military Affairs - Martin McLean
Counselor for Public Affairs - Jacob Gillespie
Defense Attache - Capt. Carmine Tortora, USN
Drug Enforcement Agency Attache - David Herrera
Federal Aviation Agency Representative - Robert J. Bernard
Labor Attache - Robert Hare
NASA Representative - John F. South
Regional Security Officer - Stanley Bielinski, Jr.
Science Attache - Robert Morris
Consul General, Barcelona - Ruth A. Davis
Consul, Bilbao - Heather Hodges

 The US Embassy is located at Serrano, 75, 28006 Madrid (tel.
34-1-577-4000; fax [phone]). Consulate General, Barcelona, Via
Layetana, 33 (tel. [phone]; fax [phone]).  Consulate Bilbao,
Avenida del Ejercito, 11 - 3rd floor, Duesto, Bilbao, 12 (tel.
34-4-475-8300; fax [phone]).

TRAVEL NOTES
 Customs:  US citizens are permitted to enter Spain without visas as
temporary visitors for business, tourism, or transit.  Bearers of US
diplomatic and official passports must have appropriate visas regardless
of the nature of the visit.
 Climate and clothing:  Clothes suitable for the Washington, DC, climate
are recommended.  Slacks are worn in public, but not shorts.  Sweaters
and raincoats are advisable.
 Health:  Sanitary conditions and facilities meet European standards.
Health requirements change, check latest information.
 Telecommunications:  Local and long-distance telephone services are
readily available.  Government telegraph offices handle all telegrams.
Madrid is six time zones ahead of eastern standard time.
 Transportation:  Public transportation is inexpensive and widely used.
Taxis are numerous and fares are reasonable. Air and rail facilities
serve most cities in Spain, with connections to major cities in Europe.
Rental cars are available, with or without a driver.  Major highways are
good.  Gasoline prices are among the highest in Europe.


 Published by the United States Department of State --  Bureau of Public
Affairs  -- Office of  Public Communication  --  Washington, DC  --
April 1991  --  Editor:  Susan Holly
 Department of State Publication 7800 -- 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, US Government Printing
Office, Washington, DC  20402.(###)


#ENDCARD