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National Trade Data Bank
ITEM ID     : ST BNOTES EGYPT
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - EGYPT

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1994
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | EGYPT

BACKGROUND NOTES:  EGYPT
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
U.S. DEPARTMENT OF STATE

AUGUST 1994
Official Name:  Egypt

PROFILE

Geography
Area:  1 million sq. km. (386,000 sq. mi.); slightly
smaller than Texas, Oklahoma, and Arkansas combined.

Cities:  Capital--Cairo (pop. over 14 million).  Other
cities--Alexandria (6 million), Aswan, Asyut, Port Said,
Suez, Ismailia.

Terrain:  Desert, except Nile valley and delta.

Climate:  Dry, hot summers; moderate winters.


People
Nationality:  Noun and adjective--Egyptian(s).
Population (1993):  56.4 million.
Annual growth rate:  2.2%.
Ethnic groups:  Egyptian, Bedouin Arab, Nubian.
Religions:  Sunni Muslim 90%, Coptic Christian.
Languages:  Arabic (official), English, French.
Education:  Years compulsory--ages 6-12.  Literacy--48%.
Health:  Infant mortality rate (1992)--80/1,000.  Life
expectancy--58 yrs. male, 62 yrs. female.

Work force:  Agriculture--39%.  Government, public
services, and armed forces--32%.  Privately owned service
and manufacturing enterprises--29%.


Government
Type:  Republic.
Independence:   1922.  Constitution:  1971.

Branches:  Executive--president, prime minister, cabinet.
Legislative--People's Assembly (444 elected and 10
presidentially appointed members) and Shura
(consultative) Council (172 elected members, 86
presidentially appointed).  Judicial-- Supreme
Constitutional Court.

Administrative subdivisions:  26 governorates.

Political parties:  National Democratic Party (ruling),
New Wafd Party, Socialist Labor Party, Liberal Party,
National Progressive Unionist Grouping, Umma Party, Misr
Al-Fattah Party, Green Party, Democratic Nasserite Party,
and Unionist Democratic Party.

Suffrage:  Universal at 18.

Flag:  Three horizontal bands--red, white, and black--
with a golden hawk in the center band.


Economy
GDP (FY 1992-93):  $40.3 billion.
Annual growth rate:  2.4%.
Per capita GDP:  $715.

Natural resources:  Petroleum and natural gas, iron ore,
phosphates, manganese, limestone, gypsum, talc, asbestos,
lead, zinc.

Agriculture:  Products--cotton, rice, onions, beans,
citrus fruits, wheat, corn, barley, sugar.

Industry:  Types--food processing, textiles, chemicals,
petrochemicals, construction, light manufacturing, iron
and steel products, aluminum, cement, military equipment.

Trade (FY 1992-93):  Exports--$3.4 billion:  petroleum,
cotton, manufactured goods.  Major markets--Japan, Italy,
Germany, France, U.K.  Imports--$10.7 billion:
foodstuffs, machinery and transport equipment, paper and
wood products.  Major suppliers--U.S., Germany, France,
Japan, Netherlands, U.K., Italy.

Exchange rate (August 1994):  3.39 Egyptian pounds=U.S.
$1.



PEOPLE AND HISTORY
Egypt is the most populous country in the Arab world and
the second-most populous on the African Continent.
Nearly 100% of the country's 58 million people live in
Cairo and Alexandria; elsewhere on the banks of the Nile;
in the Nile delta, which fans out north of Cairo; and
along the Suez Canal.  These regions are among the
world's most densely populated, containing an average of
over 1,540 person per square kilometer (3,820 per sq.
mi.).

Small communities spread throughout the desert regions of
Egypt are clustered around oases and historic trade and
transportation routes.  The government has tried with
mixed success to encourage migration to newly irrigated
land reclaimed from the desert.  However, the proportion
of the population living in rural areas has continued to
decrease as people move to the cities in search of
employment and a higher standard of living.

The Egyptians are a fairly homogeneous people of Hamitic
origin.  Mediterranean and Arab influences appear in the
north, and there is some mixing in the south with the
Nubians of northern Sudan.  Ethnic minorities include a
small number of  Bedouin Arab nomads in the eastern and
western deserts and in the Sinai, as well as some 50,000-
100,000 Nubians clustered along the Nile in upper Egypt.

The literacy rate is about 48% of the adult population.
Education is free through university and compulsory from
ages six through 12.  About 87% of children enter primary
school; half drop out after their sixth year.  There are
20,000 primary and secondary schools with some 10 million
students, 12 major universities with about 500,000
students, and 67 teacher colleges.  Major universities
include Cairo University (100,000 students), Alexandria
University, and the 1,000-year-old Al-Azhar University,
one of the world's major centers of Islamic learning.

Egypt's vast and rich literature constitutes an important
cultural element in the life of the country and in the
Arab world as a whole.  Egyptian novelists and poets were
among the first to experiment with new styles of Arabic
literature, and the forms they developed have been widely
imitated.  Egyptian novelist Naguib Mahjfouz was the
first Arab to win the Nobel prize for literature.
Egyptian books and films are available through the Middle
East.

Egypt has endured as a unified state for more than 5,000
years, and archeological evidence indicates that a
developed Egyptian society has existed for much longer.
Egyptians take pride in their "pharaonic heritage" and in
their descent from what they consider mankind's earliest
civilization.  The Arabic word for Egypt is Misr, which
originally connotated "civilization" or "metropolis."

Archeological findings show that primitive tribes lived
along the Nile long before the dynastic history of the
pharaohs began.  By 6000 B.C., organized agriculture had
appeared.

In about 3100 B.C., Egypt was united under a ruler known
as Mena, or Menes, who inaugurated the 30 pharaonic
dynasties into which Egypt's ancient history is divided--
the Old and the Middle Kingdoms and the New Empire.  For
the first time, the use and managements of vital
resources of the Nile River came under one authority.

The pyramids at Giza (near Cairo) were built in the
fourth dynasty, showing the power of the pharaonic
religion and state. The Great Pyramid, the tomb of
Pharaoh Khufu (also known as Cheops), is the only
surviving example of the Seven Wonders of the Ancient
World.  Ancient Egypt reached the peak of its power,
wealth, and territorial extent in the period called the
New Empire (1567-1085 B.C.).  Authority was again
centralized, and a number of military campaigns brought
Palestine, Syria, and northern Iraq under Egyptian
control.

Persian, Greek, Roman, And Arab Conquerors
In 525 B.C., Cambyses, the son of Cyrus  the Great, led a
Persian invasion force that dethroned the last pharaoh of
the 26th Dynasty.  The country remained a Persian
province until Alexander the Great.  The Roman/Byzantine
rule of Egypt lasted for nearly 700 years.

Following a brief Persian reconquest, Egypt was invaded
and conquered by Arab forces in 642.  A process of
Arabization and Islamization ensued.  Although a Coptic
Christian minority remained--and remains today,
constituting about 10% of the population--the Arab
language inexorably supplanted the indigenous Coptic
tongue.  Ancient Egyptian ways--passed from pharaonic
times through the Persian, Greek, and Roman periods and
Egypt's Christian era--were gradually melded with or
supplanted by Islamic customs.  For the next 1,300 years,
a succession of Turkish, Arabic, Mameluke, and Ottoman
caliphs, beys, and sultans ruled the country.

European Influence
Napoleon Bonaparte arrived in Egypt in 1798.  The three-
year sojourn in Egypt (1798-1801) of his army and a
retinue of French scientists opened Egypt to direct
Western influence.  Napoleon's adventure awakened Great
Britain to the importance of Egypt as a vital link with
India and the Far East and launched a century-and-a-half
of Anglo-French rivalry over the region.

An Anglo-Ottoman invasion force drove out the French in
1801, and, following a period of chaos, the Albanian
Mohammed Ali obtain control of the country.  Ali ruled
until 1849, and his successors retained at least nominal
control of Egypt until 1952.  He imported European
culture and technology, introduced state organization of
Egypt's economic life, improved education, and fostered
training in engineering and medicine.  His authoritarian
rule was also marked by a series of foreign military
adventures.  Ali's successors granted to the French
Promoter, Ferdinand de Lesseps, a concession for
construction of the Suez Canal--begun in 1859 and opened
10 years later.

Their regimes were characterized by financial
mismanagement and personal extravagance that reduced
Egypt to bankruptcy.  These developments led to rapid
expansion of British and French financial oversight.
This produced popular resentment, which, in 1879, led to
revolt.

In 1882, British expeditionary forces crushed this
revolt, marking the beginning of British occupation and
the virtual inclusion of Egypt within the British Empire.
During the rule of three successive British High
Commissioners between 1883 and 1914, the British agency
was the real source of authority.  It established special
courts to enforce foreign laws for foreigners residing in
the country.  These privileges for foreigners generated
increasing Egyptian resentment.  To secure its interests
during World War I, Britain declared a formal
protectorate over Egypt on December 18, 1914.  This
lasted until 1922, when, in deference to growing
nationalism, the U.K. unilaterally declared Egyptian
independence.  British influence, however, continued to
dominate Egypt's political life and fostered fiscal,
administrative, and governmental reforms.

In the post-independence period, three political forces
competed with one another:  the Wafd, a broadly based
nationalist political organization strongly opposed to
British influence; King Fuad, whom the British had
installed in the throne during the war; and the British
themselves, who were determined to maintain control over
the canal.

Although both the Wafd and the King wanted to achieve
independence from the British, they competed for control
of Egypt.  Other political forces emerging in this period
included the communist party (1925) and the Muslim
Brotherhood (1928), which eventually became a potent
political and religious force.

During World War II, British troops used Egypt as a base
for Allied operations throughout the region.  British
troops were withdrawn to the Suez Canal area in 1947, but
nationalist, anti-British feelings continued to grow
after the war.  Violence broke out in early 1952 between
Egyptians and British in the canal area, and anti-Western
rioting  in Cairo followed.

On July 22-23, 1952, a group of disaffected army officers
led by Lt. Col. Gamal Abdel Nasser overthrew King Farouk,
whom the military blamed for Egypt's  poor performance in
the 1948 war with Israel.  Following a brief experiment
with civilian rule, they abrogated the 1923 constitution
and declared Egypt a republic on June 19, 1953.  Nasser
evolved into a charismatic leader, not only of Egypt but
of the Arab world.

Nasser and his "free officer" movement enjoyed almost
instant legitimacy as liberators who had ended 2,500
years of foreign rule.  They were motivated by numerous
grievances and  goals but wanted especially to break the
economic and political power of the land owning  elite,
to remove all vestiges of British control, and to improve
the lot of the people, especially the fellahin
(peasants).

A secular nationalist, Nasser developed a foreign policy
characterized by advocacy of pan-Arab socialism,
leadership of the "nonaligned" of the "Third World," and
close ties with the Soviet Union.  He sharply opposed the
Western-sponsored Baghdad Pact.  When the United States
held up military sales in reaction to Egyptian neutrality
vis-a-vis Moscow, Nasser concluded an arms deal with
Czechoslovakia in September 1955.

When the U.S. and the World Bank withdrew their offer to
help finance the Aswan High Dam in mid-1956, he
nationalized the privately owned Suez Canal Company.  The
crisis that followed, exacerbated by growing tensions
with Israel over guerrilla attacks from Gaza and Israeli
reprisals, resulted in the invasion of Egypt that October
by France, Britain, and Israel.

While Egypt was defeated, the invasion forces were
quickly withdrawn under heavy pressure from the U.S.  The
Suez war (or, as the Egyptians call it, the Tripartite
Aggression) instantly transformed Nasser into an Egyptian
and Arab hero.

He soon after came to terms with Moscow for the financing
of the Aswan High Dam--a step that enormously increased
Soviet involvement in Egypt and set Nasser's Government
on a policy of close ties with the Soviet Union.

In 1958, pursuant to his policy of pan-Arabism, Nasser
succeeded in uniting Egypt and Syria into the United Arab
Republic.  Although this union had failed by 1961, it was
not officially dissolved until 1984.

Nasser's domestic policies were arbitrary, frequently
oppressive, and yet generally popular.  All opposition
was stamped out, and opponents of the regime frequently
were imprisoned without trial.  Nasser's foreign
policies, among other things, helped provoke the Israeli
attack of June 1967 that virtually destroyed Egypt's
armed forces along with those of Jordan and Syria.
Israel also occupied the Sinai peninsula, the Gaza Strip,
the West Bank, and the Golan Heights.  Nasser,
nonetheless, was revered by the masses in Egypt and
elsewhere in the Arab world until his death in 1970.

After Nasser's death, another of the original "free
officers," Vice President Anwar el-Sadat, was elected
President.  In 1971, Sadat concluded a treaty of
friendship with the Soviet Union but, a year later,
ordered Soviet advisers to leave.  In 1973, he launched
the October war with Israel, in which Egypt's armed
forces  achieved initial successes but were defeated in
Israeli counterattacks.

Camp David and The Peace Process
In a momentous change from the Nasser era, President
Sadat shifted Egypt from a policy of confrontation with
Israel to one of peaceful accommodation through
negotiations.  Following the Sinai Disengagement
Agreements of 1974 and 1975, Sadat created a fresh
opening for progress by his dramatic visit to Jerusalem
in November 1977.  This led to President Jimmy Carter's
invitation to President Sadat and Prime Minister Begin to
join him in trilateral negotiations at Camp David.

The outcome was the historic Camp David accords, signed
by Egypt and Israel and witnessed by the U.S. on
September 17, 1978.  The accords led to the March 26,
1979, signing of the Egypt-Israel peace treaty, by which
Egypt regained control of the Sinai in May 1982.
Throughout this period, U.S.-Egyptian relations steadily
improved, but Sadat's willingness to break ranks by
making peace with Israel earned him the enmity of most
other Arab states.

In domestic policy, Sadat introduced greater political
freedom and a new economic policy, the most important
aspect of which was the infitah or "open door."  This
relaxed government controls over the economy and
encouraged private investment.  Sadat dismantled much of
the policy apparatus and brought to trial a number of
former government officials accused of criminal excesses
during the Nasser era.

Liberalization also included the reinstitution of due
process and the legal banning of torture.  Sadat tried to
expand participation in the political process in the mid-
1970s but later abandoned this effort.  In the last years
of his life, Egypt was racked by violence arising from
discontent with Sadat's rule and sectarian tensions, and
it experienced a renewed measure of repression.

On October 6, 1981, President Sadat was assassinated by
Islamic extremists.  Hosni Mubarak, Vice President since
1975 and air force  commander during the October 1973
war, was elected president later that month.  He was re-
elected to a second term in October 1987 and to a third
term in October 1993.  Mubarak has maintained Egypt's
commitment to the Camp David peace process, while at the
same time re-establishing Egypt's position as an Arab
leader.  Egypt was readmitted to the Arab League in 1989.
Egypt has also played a moderating role in such
international fora as the UN and the Nonaligned Movement.

Mubarak was elected chairman of the Organization of
African Unity in 1989, and again at the OAU summit in
Cairo in June 1993.  Domestically, since 1991, Mubarak
has undertaken an ambitious reform program to reduce the
size of the public sector and expand the role of the
private sector.  There has also been a democratic opening
and increased participation in the political process by
opposition groups.  The November 1990 National Assembly
elections saw 61 members of the opposition win seats in
the 454-seat assembly, despite a boycott  by several
opposition parties citing possible manipulation by
Mubarak's National Democratic Party (NDP).  The
opposition parties have been weak and divided and are not
yet credible alternatives to the NDP.

Freedom of the press has increased greatly.  While
concern remains that economic problems could promote
increasing dissatisfaction with the government, President
Mubarak enjoys broad support.

For several years, domestic political debate in Egypt has
been concerned with the phenomenon of "Political Islam,"
i.e., a movement which seeks to establish a state and
society governed strictly by Islamic doctrine.  The
Muslim Brotherhood, founded in Egypt in 1928, is legally
proscribed, but operates more or less openly.  Egyptian
law, however, prohibits the formation of religion-based
political parties.  Members of the Brotherhood have been
elected to the People's Assembly as independents and have
been elected to local councils as candidates on the
Socialist Labor Party ticket.


GOVERNMENT AND POLITICAL CONDITIONS
The Egyptian constitution provides for a strong
executive.  Authority is vested in an elected president
who can appoint one or more vice presidents, a prime
minister, and a cabinet.  The president's term runs for
six years.  Egypt's legislative body, the People's
Assembly, has 454 members--444 popularly elected and 10
appointed by the president.  The constitution reserves
50% of the assembly seats for "workers and peasants."
The assembly sits for a five-year term but can be
dissolved earlier by the president.  There is also a 258-
member National Shura (consultative) Council, in which 86
members are appointed and 172 elected for six-year terms.
Below the national level, authority is exercised by and
through governors and mayors appointed by the central
government and by popularly elected local councils.

Although power is concentrated in the hands of the
president and the National Democratic Party majority in
the People's Assembly, opposition party organizations
make their views public and represent their followers at
various levels in the political system.

In addition to the ruling National Democratic Party,
there are nine other recognized parties.  Since 1990, the
number of recognized parties has doubled from five to 10.
The law prohibits the formation of parties along class
lines, thereby making it illegal for communist groups to
organize formally as political parties.

The process of gradual political liberalization begun by
Sadat has continued under Mubarak.  Egyptians now enjoy
considerable freedom of the press, and recognized
opposition political parties operate freely.  Although
the November 1990 elections are generally considered to
have been fair and free, there are significant
restrictions on the political process and freedom of
association for non-governmental organizations.
Opposition parties continue to make credible complaints
about electoral manipulation by the government.  For
example, in the 1989 Shura Council elections, the ruling
NDP won 100% of the seats.

Egypt's judicial system is based on European (primarily
French) legal concepts and methods.  Under the Mubarak
Government, the courts have demonstrated increasing
independence, and the principles of due process and
judicial review have gained greater respect.  The legal
code is derived largely from the Napoleonic Code.
Marriage and personal status (family law) are primarily
based on the religious law of the individual concerned,
which for most Egyptians is Islamic Law (Sharia).

Principal Government Officials
President--Muhammad Hosni Mubarak Prime Minister--Atef
Sedky
Deputy Prime Minister and Minister of Foreign Affairs--
Amre Moussa
Ambassador to the United States--Ahmad Maher El-Sayyed
Ambassador to the United Nations--Nabil El-Araby

Egypt maintains an embassy in the United States at 3521
International Court NW, Washington, DC 20008 (tel. 202-
895-5400).  The Washington consulate has the same address
(tel. [phone]).  The Egyptian mission to the United
Nations is located at 36 East 67th Street, New York, NY
(tel. [phone]).  Egyptian consulates general are
located at:  1110 Second Avenue, New York, NY 10022 (tel.
212-759-7120); 2000 West Loop South, Suite 1750, Control
Data Building, Houston, TX  77027 (tel. [phone]);
505 N. Lake Shore Drive, Suite 4902, Chicago, IL 60611
(tel. [phone]); and 3001 Pacific Avenue, San
Francisco, CA 94115 (tel. [phone]).


ECONOMY
Under comprehensive economic reforms initiated in 1991,
Egypt has relaxed many price controls, reduced subsidies,
and partially liberalized trade and investment.
Manufacturing is still dominated by the public sector,
which controls virtually all heavy industry.  A process
of public sector reform and privatization has begun,
however, which could enhance opportunities for the
private sector.  Agriculture, mainly in private hands,
has been largely deregulated, with the exception of
cotton and sugar production.  Construction, non-financial
services, and domestic marketing are largely private.

Agriculture
More than one-third of Egyptian labor is engaged directly
in farming, and many others work in the processing or
trading of agricultural products.  Practically all
Egyptian agriculture takes place in some 2.5 million
hectares (6 million acres) of fertile soil in the Nile
Valley and Delta.  Some desert lands are being developed
for agriculture, but other fertile lands in the Nile
Valley and Delta are being lost to urbanization and
erosion.

Warm weather and plentiful water permit several crops a
year.  Further improvement is possible, but agricultural
productivity is  already high, considering the
traditional methods used.  Egypt has little subsistence
farming.  Cotton, rice, onions, and beans are the
principal crops.  Cotton is the largest agricultural
export earner.

The United States is a major supplier of wheat to Egypt,
through commercial sales and the PL 480 (Food for Peace)
program.  Other Western countries have also supplied food
on concessional terms.

"Egypt," wrote the Greek historian Herodotus 25 centuries
ago, "is the gift of the Nile."  The land's seemingly
inexhaustible resources of water and soil carried by this
mighty river created in the Nile Valley and Delta the
world's most extensive oasis.  Without the Nile, Egypt
would be little more than a desert wasteland.

The river carves a narrow, cultivated floodplain, never
more than 20 kilometers wide, as it travels northward
from Sudan to form Lake Nasser, behind the Aswan High
Dam.  Below the dam, just north of Cairo, the Nile
spreads out over what was once a broad estuary that has
been filled by riverine deposits to form a fertile delta
about 250 kilometers wide (150 mi.) at the seaward base
and about 160 kilometers (96 mi.) from south to north.

Before the construction of dams on the Nile, particularly
the Aswan High Dam, the fertility of the Nile Valley was
sustained by the water flow and the silt deposited by the
annual flood.  Sediment is now obstructed by the Aswan
High Dam and retained in Lake Nasser.  The interruption
of yearly, natural fertilization and the increasing
salinity of the soil have detracted somewhat from the
high dam's value.  Nevertheless, the benefits remain
impressive:  more intensive farming on millions of acres
of land made possible by improved irrigation, prevention
of flood damage, and the generation of billions of low-
cost kilowatt hours of electricity.

The Western Desert accounts for about two-thirds of the
country's land area.  For the most part, it is a massive
sandy plateau marked by seven major depressions.  One of
these, Fayoum, was connected about 3,600 years ago to the
Nile by canals.  Today, it is an important irrigated
agricultural area.

Natural Resources
In addition to the agricultural capacity of the Nile
Valley and delta, Egypt's natural resources include
petroleum, natural gas, phosphates, and iron ore.
Petroleum deposits are found primarily in the Gulf of
Suez, the Nile delta, and the Western Desert.  The
petroleum and natural gas sector accounted for
approximately 10% of GDP in FY 1991-92.

Petroleum products represented about 45% of export
earnings during that period.  The fall in world oil
prices after the 1991 Gulf war pushed Egypt's benchmark
"Suez Blend" to an average price of $15 per barrel in FY
1991-92, compared with $20 per barrel in FY 1990-91.
Thus, the value of Egyptian crude oil exports dropped to
$1.2 billion in FY 1991-92 versus $1.5 billion in FY
1990-91.

Petroleum production dropped slightly in FY 1991-92 to 44
million tons at 870,000 barrels per day.  To limit the
domestic consumption of oil, Egypt is encouraging the
production of natural gas.  Natural gas output continues
to increase, and reached 7.2 million metric tons
equivalent in FY 1991-92.

Twelve petroleum exploration agreements were signed in
1992, under which six companies are expected to spend
over $90 million to drill 24 wells.

Since 1991, the government has tried to attract enough
foreign investment to maintain existing exploration and
production and attract new investment.  In October 1991,
the government adopted a market-determined petroleum
export pricing formula.

Transport and Communication
Transportation facilities in Egypt are centered on Cairo
and largely follow the pattern of settlement along the
Nile.  The major line of the nation's 4,800-kilometer
(2,800-mi.) railway network runs from Alexandria to
Aswan.  The well-maintained road network has expanded
rapidly to over 21,000 miles, covering the Nile valley
and delta, Mediterranean and Red Sea coasts, the Sinai,
and the Western oases.

Egyptair provides reliable domestic air services to major
tourist destinations from its Cairo hub (in addition to
overseas routes).  The Nile River system (about  1,600
km. or 1,000 mi.) and the principal canals (1,600 km.)
are important locally for transportation.  The Suez Canal
is a major waterway of international commerce and
navigation, linking the Mediterranean and Red Seas.
Major ports are Alexandria, Port Said, and Damietta on
the Mediterranean, and Suez and Safraga on the Red Sea.

Egypt has long been the cultural and informational center
of the Arab world, and Cairo is the region's largest
publishing and broadcasting center.  There are eight
daily newspapers with a total circulation of more than 2
million, and a number of monthly newspapers, magazines,
and journals.  The majority of political parties have
their own newspapers, and these papers conduct a lively,
often highly partisan debate on public issues.

Radio and television are owned and controlled by the
government through the Egyptian Radio and Television
Federation.  The Federation operates two national
television networks and three regional stations in Cairo,
Alexandria, and Ismailia.  The government also beams
daily satellite programming to the rest of the Arab
world, the U.K., and the U.S.


DEFENSE
Egypt's armed forces are among the largest in the region,
and include the army (290,000), air defense (70,000), air
force (30,000), and navy (20,000).  The armed forces
inventory includes equipment from the United States,
France, Italy, the United Kingdom, the former Soviet
Union, and China.  Most of the equipment from the former
Soviet Union is being replaced by more modern American,
French, and British equipment, of which significant
amounts are being built under license in Egypt.  To
bolster stability and moderation in the region, Egypt has
provided military assistance and training to a number of
African and Arab states.


FOREIGN RELATIONS
Egypt was readmitted to the Arab League in May 1989, and
the Arab League headquarters has returned to Cairo from
Tunis.  Former Egyptian Foreign Minister Abdel Meguid is
the present Secretary General of the Arab League.
President Mubarak chaired the Organization of African
Unity from 1989 to 1990 and again in 1993.  In 1991,
Egyptian Deputy Prime Minister Boutros Boutros-Ghali was
elected Secretary General of the United Nations in a
tightly contested election.

Egypt played a key role during the 1990-91 Gulf crisis.
President Mubarak helped assemble the international
coalition and deployed 35,000 Egyptian troops against
Iraq to liberate Kuwait.  The Egyptian contingent was the
second largest in the  coalition forces.  In the
aftermath of the Gulf war, Egypt signed the Damascus
declaration with Syria and the Gulf states to strengthen
Gulf security.

Egypt also played an important role in the negotiations
leading to the Madrid Peace Conference in 1991, which,
under U.S. and Russian sponsorship, brought together all
parties in the region to discuss Middle East peace.
Since then, Egypt has been an active participant in the
peace process and has been a strong supporter of the
bilateral discussions.

Egyptian-Israeli relations improved after Labor's 1992
victory in Israeli national elections, and Egypt and
Israel are committed to improving their bilateral
relationship.  By mid-1993, President Mubarak and Prime
Minister Rabin had met twice, and other senior-level
bilateral contacts have increased.  There has also been
progress on the return of Sinai antiquities to Egypt and
on issues relating to military personnel missing in
action.  Agricultural cooperation continues to be the
most active area of Egyptian-Israeli technical
cooperation.


U.S.-EGYPTIAN RELATIONS
President Mubarak has long been a  supporter of a strong
U.S.-Egyptian relationship based on shared interests in
regional security and stability and the peaceful
resolution of international disputes.  President Mubarak
was the first Arab leader to visit the U.S. after
President Clinton's  inauguration.  The two countries
have worked closely together to promote a peaceful
settlement of the Arab-Israeli conflict and to resolve
conflicts in Africa--including most recently
participation by Egyptian soldiers in UN peace-keeping
efforts in Somalia.

An important pillar of the bilateral relationship remains
U.S. security and economic assistance to Egypt, which
expanded significantly in the wake of the Egyptian-
Israeli Peace Treaty in 1979.  In FY 1993, total U.S.
assistance levels to Egypt were $1.3 billion in Foreign
Military Sales (FMS) grants and $815 million in Economic
Support Fund grants.  The Egyptians have used FMS to
support their military modernization program.  PL 480
food aid in FY 1993 amounted to $50 million, down from
$150 million annually in previous years, due to Egypt's
increased commercial purchases.

U.S. assistance promotes Egypt's economic development,
supports U.S.-Egyptian cooperation, and enhances regional
stability.  U.S. economic aid stimulates economic growth
by funding major projects in electric power generation,
telecommunications, housing and transport, and the
financing of commodity imports such as raw materials and
capital equipment.  Power plants built with U.S.
assistance generate more electricity than the Aswan High
Dam.

Since 1975, the United States has provided $2.2 billion
to improve and expand water and sewage systems in Cairo,
Alexandria, and other Egyptian cities.  U.S. military
cooperation has helped Egypt modernize its armed forces
and strengthen regional security and stability.  Under
FMS programs, the U.S. has provided F-4 jet aircraft, F-
16 jet fighters, M-60A3 and M1A1 tanks, armored personnel
carriers, Apache helicopters, antiaircraft missile
batteries, aerial surveillance aircraft, and other
equipment.

The U.S. and Egypt also participate in combined military
exercises, including deployment of U.S. troops to Egypt.
Units of the U.S. 6th Fleet are regular visitors to
Egyptian ports.


Principal U.S. Officials
Ambassador--Edward S. Walker, Jr.
Deputy Chief of Mission--Edmund J. Hull
Minister-Counselor for Economic Affairs--Russell A.
Lamantia
Counselor for Political Affairs--Jeffrey Millington
Counselor for Commercial Affairs--Laron L. Jensen
Counselor for Public Affairs--Marjorie A. Ransom
Counselor for Agricultural Affairs--Franklin D. Lee
Counselor for Administrative Affairs--Warren E. Littrel,
Jr.
Consul General--Dona Sherman
Labor Affairs Officer--Barbara Leaf
Director, AID Mission--John Wesley
Defense Attache--Col. Joseph P. Engleheardt,
USA Chief, Office of Military Cooperation--MG Otto
Habedanke, USAF

The U.S. embassy in Cairo is located on Lazoughli Street,
Garden City, near downtown Cairo.  The mailing address
for the embassy from the U.S. is American Embassy, APO AE
09839-4900; from Egypt, it is 8 Sharia Kamal El-Din
Salah, Garden City, Cairo.  The telephone number is (20)
(2)355-7371; fax (20) (2)355-7375; telex 93773 Amemb UN.
The embassy is closed on all U.S. federal holidays and
some Egyptian holidays.



TRAVEL NOTES

Climate and clothing:  Clothing should be suitable for
hot summers and temperate winters.  Modest attire is
required.

Customs:  Visas are required.  Travelers are advised to
obtain visas through any Egyptian embassy or consulate
prior to travel, although visas can also usually be
obtained on arrival at Cairo Airport.  Shots are not
required for visitors coming from the United States or
Europe, but yellow fever immunizations are required of
travelers coming from infected areas.  The Department of
State Medical Division recommends that visitors to Egypt
obtain typhoid, tetanus, polio, meningitis, gamma
globulin, hepatitis B, measles-mumps-rubella, and rabies
immunizations; however, travelers should consult their
physicians.

Health:  Travelers should be aware of prevalent rabies
hazards, and, in some outlying areas, malaria.

Telecommunications:  Telephone service is good and
international direct dialing is available.  Telegrams can
be sent from the main post office and hotels, and telex
service is available.

Transportation:  Several international airlines serve
Cairo.  There is domestic air service between Cairo,
Alexandria, Aswan, Luxor, Hurghada, the Sinai, and the
New Valley.  Rail service is available from Cairo to
Aswan in the south and to Alexandria in the north.  Taxis
are often shared with other customers.  Settle on a price
before entering a taxi.




Published by the United States Department of State --
Bureau of Public Affairs -- Office of Public
Communication -- Washington, DC
August 1994 -- Managing Editor:  Peter A. Knecht  --
Editor:  Peter Freeman

Department of State Publication 8152  --  Background
Notes Series For sale by the Superintendent of Documents,
U.S. Government Printing Office, Washington, DC  20402.