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

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

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1992
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | GERMANY

BACKGROUND NOTES:  GERMANY
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
US DEPARTMENT OF STATE

JUNE 1991

Official Name:  Federal Republic of Germany

PROFILE

Geography
Area:  357,000 sq. km. (137,838 sq. mi.); about the size of
Montana.  Cities:  Capital--Berlin (population about 3.4
million). Seat of government--Bonn (pop. 287,000).  The permanent
seat of government for a unified Germany will be addressed by the
all-German Parliament elected on December 2, 1990.  Other
cities--Hamburg (1.6 million), Munich (1.2 million), Cologne
(946,000), Frankfurt (635,000).  (Dec. 1990 est.)  Terrain:  Low
plain in the north; high plains, hills, and basins in the center
and east; mountainous Alpine region in the south.  Climate:
Temperate; cooler and rainier than much of the US.

People
Nationality:  Noun and adjective--German(s).  Population:  About
79 million (Dec. 1990 est.).  Ethnic groups:  Primarily German;
Danish minority in the north, Serbian (Slavic) minority in the
east.
Religions:  Almost evenly divided between Protestant and Roman
Catholic.
Language:  German.
Education:  Years compulsory--10.  Attendance--100%.
Literacy--99%.
Health (in the original 11 states):  Infant mortality rate
(1990)--6/1,000.  Life expectancy  (1990)--women 81 yrs., men 73
yrs.  Work force: 39 million (1990 estimate).  Includes the 11
million workers in the former GDR.

Government
Type:  Federal republic.
Founded: 1949 (Basic Law, i.e., constitution, promulgated on May
23, 1949).  On October 3, 1990, the Federal Republic of Germany
and the German Democratic Republic unified in accordance with
Article 23 of the FRG Basic Law.
Branches:  Executive--president (titular chief of state),
chancellor (executive head of government).
Legislative--bicameral parliament.  Judicial--independent,
Federal Constitutional Court.
Subdivisions:  16 Laender (states)--Baden-Wuerttemberg, Bayern
(Bavaria), Berlin, Brandenburg*, Bremen, Hamburg, Hessen (Hesse),
Mecklenburg-Vorpommern*, Niedersachsen (Lower Saxony),
Nordrhein-Westfalen (North Rhine-Westphalia), Rheinland-Pfalz,
Saarland, Sachsen (Saxony)*, Sachsen-Anhalt*, Schleswig-Holstein,
Thueringen (Thuringia)*.
(* = formerly part of the GDR)
Major political parties:  Christian Democratic Union (CDU);
Christian Social Union (CSU); Social Democratic Party (SPD); Free
Democratic Party (FDP); Greens/Alliance 90; Party of Democratic
Socialism (PDS).  Suffrage:  Universal at 18.   Central
government budget (1990): $245 billion.  Defense budget (original
11 states, 1990):  2.2% of GNP.  Flag:  Three horizontal bands:
black, red, and gold, from top to bottom.

Economy (for original 11 states)
GNP (1989):  $1.2 trillion.  Annual growth rate (1989): 4%.  Per
capita income: $19,000.  Inflation rate (1988):  2.8%.   Natural
resources:  Iron, hard coal, lignite, potash, natural gas.
Agriculture (1.5% of GNP):  Products--corn, wheat, potatoes,
sugar beets, barley, hops, viniculture, forestry, fisheries.
Industry (40% of GNP):  Types--iron and steel, coal, chemicals,
electrical products, ships, vehicles, construction.  Trade
(1989):  Exports --$367 billion: chemicals, motor vehicles, iron
and steel products, manufactured goods, electrical products.
Major markets (1988)--European Community 54%, other European
countries 19%, US 8%, developing countries 7%, Soviet Union 2%.
Imports--$269 billion:  food, petroleum products, manufactured
goods, electrical products, automobiles, apparel.  Major
suppliers (1988)--European Community countries 52%, other
European countries 16%, US 7%, developing countries 10%, Soviet
Union 2%.  Exchange rate (November 1990):  1.50 Deutsche marks=US
$1.

Membership in International Organizations
Council of Europe, North Atlantic Treaty Organization (NATO),
INTELSAT, European Community (EC), Western European Union (WEU),
Organization for Economic Cooperation and Development (OECD), and
the United Nations and UN-related agencies, including the General
Agreement on Tariffs and Trade (GATT), International Atomic
Energy Agency (IAEA), International Bank for Reconstruction and
Development (World Bank), and International Monetary Fund (IMF).

PEOPLE
The population of the unified FRG is primarily German; however,
there are a substantial number of foreign guest workers and their
dependents.  An ethnic Danish minority lives in the north, and a
small Slavic minority known as the Sorbs lives in eastern
Germany.  Renowned for their economic productivity, Germans are
well-educated.  Since the end of World War II, the number of
youths entering universities has nearly tripled, and the trade
and technical schools in the original 11 states of the FRG are
among the world's best.

German culture has produced some of the greatest artists and
intellectuals of all time.  Composers, artists, writers,
scholars, and scientists have always enjoyed prestige in Germany.

With per capita income levels approaching $20,000 in the original
11 states, postwar Germany has become a broadly middle class
society.  A generous social welfare system provides for universal
medical care, unemployment compensation, and other social needs.
Modern Germans also are mobile; millions travel abroad each year.

With unification on October 3, 1990, the FRG has started the
major task of bringing the standard of living of Germans in the
former GDR up to the levels of western Germany.  It appears that
this will be a lengthy and difficult process, due to the relative
inefficiency of the industrial enterprises in the former GDR, the
poor infrastructure in this area, the environmental damage in
eastern Germany brought on by years of mismanagement under
communist rule, and difficulty in resolving property ownership in
the former GDR.

HISTORY
Germanic tribes, migrating south and west, entered the present
territory of Germany nearly 4,000 years ago.  They pushed back
the Celts and were strongly established before encountering the
Romans moving north under Varus, one of Augustus' generals.  The
Germans annihilated the Roman forces and killed Varus in the
battle of the Teutoburg Forest in 9 AD, effectively stopping
Roman expansion on the Danube-Rhine line.

Thus, much of Germany did not experience Latin culture directly
and adopted Christianity later than did the Roman world.  The
baptism of Clovis in 496 AD opened the way for widespread
conversion of the Germanic tribes and culminated three centuries
later with the crowning of "Karl the Great" (Charlemagne) in 800
as Holy Roman Emperor.  For the next 1,000 years, decentralizing
forces dominated German politics, leaving power largely in the
hands of local princes, often with devastating consequences.  The
Thirty Years' War (1618-48), a series of conflicts between
Protestant and Catholic forces, decimated Germany's population.
After the war, an uneasy balance remained between Protestant and
Catholic states, which continued to war against each other
periodically.

The rise of Prussian power in the 19th century, supported by
growing German nationalism, eventually ended the inter-state
fighting and resulted in the formation of the German Empire in
1871 under the chancellorship of Otto von Bismarck.  Although
authoritarian in many respects, the empire eventually permitted
the development of political parties and Bismarck was credited
with passing the most advanced social welfare legislation of the
age.  Dynamic expansion of military power, however, contributed
to tension on the continent.  The fragile European balance of
power broke down in 1914, and World War I left millions dead and
led to the collapse of the empire.

The Weimar Republic
The postwar Weimar Republic (1919-33) sought to draw on Germany's
liberal traditions but was handicapped by terrible economic
problems--the inflation of the early 1920s and the post-1929
world depression--as well as the political legacy of the
Versailles Treaty, which imposed a heavy burden of reparations
and loss of territory.  The new experiment in republican,
parliamentary democracy was unable to harness the resulting surge
of political conflicts, and the republic suffered from a
succession of weak governments formed by multi-party coalitions.

The National Socialist (Nazi) Party, led by a demagogic
ex-corporal, Adolf Hitler, stressed nationalist themes, such as
the alleged betrayal of Germany by German republican
representatives at Versailles, promised to put the unemployed
back to work, and blamed many of Germany's ills on alleged Jewish
conspiracies.  Its electorate expanded rapidly in the early
1930s, but the Nazi party never achieved a majority prior to
coming to power.  Only after months of deadlock was Hitler asked
to form a government as Reich Chancellor in January 1933.  After
President Paul von Hindenburg died in 1934, Hitler assumed that
office as well.  Once in power, Hitler and his party first
undermined then abolished democratic institutions and opposition
parties and installed a program of racism that resulted in the
deliberate, widespread extermination of Jews and other minority
groups during World War II.  In the 1930s, Hitler also began to
restore Germany's economy and military strength.  His ambitions
led Germany into launching World War II and suffering
destruction, defeat, and loss of territory.

After Germany's unconditional surrender on May 8, 1945, the
United States, the United Kingdom, and the USSR occupied the
country and assumed responsibility for its administration.  The
commanders-in-chief exercised supreme authority in their
respective zones and, sitting as the Allied Control Council
(ACC), acted in concert on questions affecting the whole country.
France was later invited to join the ACC and was given a separate
zone of occupation.

At Potsdam in August 1945, the United States, the United Kingdom,
and the Soviet Union agreed to a broad program of
decentralization, treating Germany as a single economic unit with
some central administrative departments.  These plans failed,
primarily because of inter-Allied conflict.  The turning point
came in 1948 when the Soviets withdrew from the Four Power
governing bodies and blockaded Berlin.

Political Developments in West Germany
The United States and the United Kingdom moved to establish a
nucleus for a future German government by expanding the size and
powers of the German Economic Council in their two zones.  The
program provided for a West German constituent assembly, an
occupation statute governing relations between the Allies and the
German authorities, and the economic merger of the French with
the British and American zones.

On May 23, 1949, the Basic Law, or constitution, of the Federal
Republic of Germany was promulgated.  The first federal
government was formed by Konrad Adenauer on Sept. 20, 1949.  The
next day, the occupation statute came into force, granting full
powers of self-government with certain exceptions.

The FRG quickly progressed toward fuller sovereignty and
association with European neighbors and the Atlantic community.
The London and Paris agreements of 1954 restored full sovereignty
to the FRG when they went into effect on May 5, 1955 and opened
the way for German membership in the North Atlantic Treaty
Organization (NATO) and the Western European Union (WEU).

The three Allies retained occupation powers in Berlin and certain
responsibilities for Germany as a whole.  Under the new
arrangements, the Allies stationed troops within the FRG for NATO
defense, pursuant to stationing and status-of-forces agreements.
With the exception of 45,000 French troops, Allied forces were
under NATO's joint defense command.

Political life in the FRG was remarkably stable and orderly.  The
Adenauer era (1949-63) was followed by a brief period under
Ludwig Erhard (1963-66) who, in turn, was replaced by Kurt Georg
Kiesinger (1966-69).  Kiesinger's 1966-69 "Grand Coalition"
included the CDU/CSU and the Social Democratic Party (SPD).
Governments between 1949 and 1966 were all formed by the united
caucus of the Christian Democratic Union (CDU) and Christian
Social Union (CSU), either alone or in coalition with the smaller
Free Democratic Party (FDP).

In the 1969 election, the Social Democratic Party (SPD), headed
by Willy Brandt, gained enough votes to form a coalition
government with the FDP.  Chancellor Brandt remained head of
government until May 1974, when he resigned after a senior member
of his staff was arrested and accused of being an officer in the
East German intelligence service.

Finance Minister Helmut Schmidt formed a government and received
the unanimous support of coalition members. Hans-Dietrich
Genscher, a leading FDP official, became the vice chancellor and
foreign minister.   Schmidt, a strong supporter of the European
Community (EC) and the Atlantic alliance, emphasized his
commitment to "the political unification of Europe in partnership
with the USA."

In October 1982, the SPD/FDP coalition fell apart and the FDP
joined forces with the CDU/CSU to elect CDU Chairman Helmut Kohl
as chancellor.  Following national elections in March 1983, Kohl
emerged in firm control of both the government and the CDU.  The
CDU/CSU fell just short of an absolute majority, due to the entry
into the Bundestag of the Greens, who received 5.6% of the vote.

In January 1987, the Kohl/Genscher government was returned to
office, but the FDP and the Greens gained at the expense of the
larger parties.  Kohl's CDU and its Bavarian sister party, the
CSU, slipped from 49% of the vote in 1983 to 44%.  The SPD fell
to 37%.  Long-time SPD Chairman Brandt subsequently resigned in
April 1987 and was succeeded by Hans-Jochen Vogel.  The FDP rose
from 7% to 9%, their best showing since 1980.  The Greens also
significantly strengthened their place in the Bundestag, rising
from 5.6% (1983) to 8.3% (1987).

Political Developments in East Germany
In the Soviet zone, the Social Democratic party was forced to
merge with the Communist party in 1946 to form a new party, the
Socialist Unity Party (SED).  The October 1946 elections resulted
in coalition governments in the five Land (state) parliaments
with the SED as the undisputed leader.

A series of people's congresses were called in 1948 and early
1949 by the SED.  Under Soviet direction, a constitution was
drafted on May 30, 1949, and adopted on October 7, which was
celebrated as the day when the German Democratic Republic was
proclaimed.  The People's Chamber (Volkskammer), the lower house
of the GDR parliament, and an upper house, the States Chamber
(Laenderkammer), were created.  (The Laenderkammer was abolished
in 1958.)  On October 11, 1949, the two houses elected Wilhelm
Pieck as president and an SED government was set up.  The Soviet
Union and its East European allies immediately recognized the
GDR, although it remained largely unrecognized by non-communist
countries until 1972-73.

The GDR established the structures of a single-party, centralized
communist state.  On July 23, 1952, the traditional Laender were
abolished and, in their place, 14 Bezirke (districts) were
established.  All effective government control was in the hands
of the SED and almost all important government positions were
held by SED members.

The National Front was an umbrella organization nominally
consisting of the SED, four other political parties controlled
and directed by the SED, and the four principal mass
organizations (youth, trade unions, women, and culture).
However, control was clearly and solely in the hands of the SED.
Balloting in GDR elections was not secret.  As in other Soviet
bloc countries, electoral participation was consistently high,
with nearly unanimous candidate approval.

Inter-German Relations
The constant stream of East Germans fleeing to West Germany
placed great strains on FRG-GDR relations in the 1950s.  On
August 13, 1961, the GDR began building a wall through the center
of Berlin, effectively dividing the city and slowing  the flood
of refugees to a trickle.  The Berlin Wall became the symbol of
the East's political debility and the division of Europe.

In 1969, FRG Chancellor Brandt announced that the FRG would
remain firmly rooted in the Atlantic alliance but would intensify
efforts to improve relations with Eastern Europe and the GDR.

The FRG commenced its Ostpolitik by negotiating non-aggression
treaties with the Soviet Union, Poland, Czechoslovakia, Bulgaria,
and Hungary.  The FRG's relations with the GDR posed particularly
difficult questions.  Though anxious to relieve serious hardships
for divided families and to reduce friction, the FRG under Brandt
was intent on holding to its concept of "two German states in one
German nation."

Relations improved, and, in September 1973, the FRG and the GDR
were admitted to the UN.  The two Germanys exchanged permanent
representatives in 1974, and, in 1987, GDR head of state Erich
Honecker paid an official visit to the FRG.

German Unification
During the summer of 1989, rapid change in the GDR ultimately led
to German unification.  Growing numbers of East Germans emigrated
to the FRG via Hungary after the Hungarians decided not to use
force to stop them.  Thousands of East Germans also tried to
reach the West by staging sit-ins at FRG diplomatic facilities in
other East European capitals.  The exodus generated demands
within the GDR for political change, and mass demonstrations in
several cities--particularly in Leipzig--continued to grow.  On
October 7, Soviet leader Mikhail Gorbachev visited Berlin to
celebrate the 40th anniversary of the establishment of the GDR
and urged the East German leadership to pursue reform.

On October 18, Erich Honecker resigned as head of the SED and
head of state and was replaced by Egon Krenz.  But the exodus
continued unabated, and pressure for political reform mounted.
On November 4, a demonstration in East Berlin drew an estimated
500,000--1 million East Germans.  Finally, on November 9, the
Berlin Wall was opened, and East Germans were allowed to travel
freely.  Thousands poured through the Wall into the western
sectors of Berlin, and on November 12, the GDR began dismantling
it.

On November 28, FRG Chancellor Kohl outlined a 10-point plan for
the peaceful unification of the two Germanys based on free
elections in the GDR and a unification of their two economies.
In December, the GDR Volkskammer eliminated the SED monopoly on
power, and the entire Politburo and Central Committee--including
Krenz--resigned.  The SED changed its name to the Party of
Democratic Socialism (PDS) and the formation and growth of
numerous political groups and parties marked the end of the
former communist system.  Prime Minister Hans Modrow headed a
caretaker government which shared power with the new
democratically oriented parties.  On December 7, 1989, agreement
was reached to hold free elections in May 1990 and rewrite the
GDR constitution.  On January 28, all the parties agreed to
advance the elections to March 18, primarily because of an
erosion of state authority and because the East German exodus
continued with over 117,000 leaving for the West in January and
February 1990.

In early February 1990, the Modrow government's proposal for a
unified, neutral German state was rejected by Chancellor Kohl,
who affirmed that a unified Germany must be a member of NATO.
Finally, on March 18, the first free elections were held in the
GDR, and a government led by Lothar de Maiziere (CDU) was formed
under a policy of expeditious unification with the FRG.  The
freely elected representatives of the Volkskammer held their
first session on April 5, and the GDR peacefully evolved from a
communist to a democratically elected government.  Free and
secret communal (local) elections were held in the GDR on May 6,
and the CDU again won.  On July 1, the two Germanys entered into
an economic and monetary union.

Four Power Control Ends
During 1990, in parallel with internal German developments, the
Four Powers--the United States, Britain, France, and the Soviet
Union--negotiated to end Four Power reserved rights for Berlin
and Germany as a whole.  These "Two-plus-Four" negotiations were
mandated at the Ottawa Open Skies conference on February 13,
1990.  The six foreign ministers met four times in the ensuing
months in Bonn (May 5) , Berlin (June 22), Paris (July 17), and
Moscow (September 12).  The Polish Foreign Minister participated
in that part of the Paris meeting that dealt with the
Polish-German borders.

Of key importance was overcoming Soviet objections to a united
Germany's membership in NATO.  This was accomplished in July when
the alliance--led by President Bush--issued the London
Declaration on a transformed NATO.  On July 16, President
Gorbachev and Chancellor Kohl announced agreement in principle on
a united Germany in NATO.  This cleared the way for signing the
"Treaty on the Final Settlement With Respect to Germany" in
Moscow on September 12.

In addition to terminating Four Power rights, the treaty mandates
the withdrawal of all Soviet forces from Germany by the end of
1994, makes clear that the current borders are final and
definitive, and specifies the right of a united Germany to belong
to NATO.  It also provides for the continued presence of British,
French, and American troops in Berlin during the interim period
of the Soviet withdrawal.  In the treaty, the Germans renounced
nuclear, biological, and chemical weapons and stated their
intention to reduce German armed forces to 370,000 within 3-4
years after the conventional armed forces in Europe (CFE)
agreement (signed in Paris on November 19, 1990) enters into
force.

Conclusion of the final settlement cleared the way for
unification of the FRG and GDR.  Formal political union occurred
on October 3, 1990, with the accession (in accordance with
Article 23 of the FRG's Basic Law) of the five Laender, which had
been reestablished in the GDR.  On December 2, 1990, all-German
elections were held for the first time since 1937.  The CDU/CSU
received 44% of the vote and the FDP received 11%, giving the
governing coalition 55% of the vote and 398 of 662 seats in the
Bundestag.  The SPD opposition won 34% of the vote and 239 seats.
Under the special provisions of the first all-German elections,
parties in the former GDR who received 5% of the vote in that
area were also able to receive representation.  The Party of
Democratic Socialism received 10% of the vote in the former GDR
and 17 seats in the Bundestag, and an alliance of the Greens and
several left-wing organizations (Alliance 90) won 6% of the vote
in East Germany and 8 Bundestag seats.  However, in West Germany,
since the Greens won only 4.7% of the vote, they did not receive
any Bundestag seats.

GOVERNMENT

The government is parliamentary and based on a democratic
constitution that emphasizes the protection of individual liberty
and divided power in a federal structure.  The chancellor (prime
minister) heads the executive branch of the federal government.
The president's duties (chief of state) are largely ceremonial;
power is exercised by the chancellor.  Although elected by and
responsible to the Bundestag (lower and principal chamber of the
parliament), the chancellor cannot be removed from office during
a 4-year term unless the Bundestag has agreed on a successor.

The Bundestag, also elected for a 4-year term, consists of 662
deputies.  The first elections for an all-German Bundestag were
held on December 2, 1990.  The Bundesrat (upper chamber or
Federal Council) consists of 68 members who are delegates of the
16 Laender.  The legislature has powers of exclusive jurisdiction
and concurrent jurisdiction (with the Laender) in fields
specifically enumerated by the Basic Law.  The Bundestag bears
the major responsibility, and the role of the Bundesrat is
limited except in matters concerning Laender interests, where it
can exercise substantial veto power.

The FRG has an independent federal judiciary consisting of a
constitutional court, a high court of justice, and courts with
jurisdiction in administrative, financial, labor, and social
matters.  The highest court is the Federal Constitutional Court
which ensures a uniform interpretation of constitutional
provisions and protects the fundamental rights of the individual
citizen as defined in the Basic Law.

Principal Government Officials
President--Richard von Weizsaecker
President of the Bundestag--Rita Suessmuth (CDU)
Chancellor--Helmut Kohl (CDU)
Vice Chancellor--Hans-Dietrich Genscher (FDP)
Minister of Defense--Gerhard Stoltenberg (CDU)
Minister for Foreign Affairs--Hans-Dietrich Genscher (FDP)
Ambassador to the US--Dr. Juergen Ruhfus
Ambassador to the UN--Detlew Graf zu Rantzau

The FRG maintains an embassy in the United States at 4645
Reservoir Road NW, Washington, DC 20007 (tel. [phone]).

FRG consulates general are located in Atlanta, Boston, Chicago,
Detroit, Houston, Los Angeles, San Francisco, Seattle, and New
York. Consulates are located in Miami and New Orleans.

Political Parties
--  Christian Democratic Union/Christian Social Union (CDU/CSU):
An important aspect of postwar German politics has been the
emergence of a moderate Christian party, the Christian Democratic
Union, operating with a related Bavarian party, the Christian
Social Union.  Although each party maintains its own structure,
the two form a common caucus in the Bundestag and do not run
opposing campaigns.  The CDU/CSU is loosely organized, containing
Catholics, Protestants, rural interests, and members of all
economic classes.  It is generally conservative on economic and
social policy and more identified with the Roman Catholic and
Protestant churches than are the other major parties, although
its programs are pragmatic rather than ideological.  Helmut Kohl
has served as chairman of the CDU since 1973; Theo Waigel
succeeded the late Franz Josef Strauss as chairman of the CSU in
1988.

--  Social Democratic Party (SPD):  The SPD is the other major
party in the FRG and is one of the oldest organized political
parties in the world.  Historically, it advocated Marxist
principles, but in the "Godesberg Program," adopted in 1959, the
SPD abandoned the concept of a class party, while continuing to
stress social welfare programs.  Although the SPD originally
opposed West Germany's 1955 entry into NATO, it now emphasizes
German ties with the alliance.  However, the SPD often has
opposed specific NATO programs and has advanced its own proposals
under the banner of "security partnership" with the East.  The
SPD has a powerful base in the bigger cities and industrialized
Laender.  Bjoern Engholm became the SPD chairman in May 1991.

--  The Free Democratic Party (FDP):  The FDP has traditionally
been composed mainly of middle- and upper-class Protestants who
consider themselves "independents" and heirs to the European
liberal tradition.  Although the party is weak on the state
level, it has participated in all but three postwar governments
and has spent only 7 years out of government in the 40-year
history of the Federal Republic.  Otto Graf Lambsdorff was
elected chairman of the FDP in 1988.  A leading figure in the
party is Hans-Dietrich Genscher, who has served since 1974 as the
West German Vice Chancellor and Foreign Minister in coalition
governments with both the SPD and the CDU/CSU.

--  The Party of Democratic Socialism (PDS):  Under chairman
Gregor Gysi, the PDS is the successor party to the SED (communist
party).   Established in December 1989, it renounced most of the
extreme aspects of SED policy, but has retained much of the
ideology of the SED.   In the December 1990 all-German elections,
the PDS gained 10% of the vote in the territory of the former GDR
and 17 seats in the Bundestag. However, having won only 0.3% of
the vote in western Germany, it is questionable whether the PDS
will win representation in the next German election, when the 5%
hurdle will apply throughout all of Germany.

--  Greens:  In the 1970s, environmentalists organized
politically as the Greens.  Opposition to expanded use of nuclear
power, to NATO strategy, and to aspects of highly industrialized
society were the principle campaign issues.  The Greens received
8% of the vote in the January 1987 West German national election.
However, in the December 1990 all-German elections, the Greens in
western Germany were not able to clear the 5% hurdle required to
win seats in the Bundestag.  It was only in the territory of the
former GDR that the Greens, in an alliance with Alliance 90 (a
loose grouping of left-wing political entities with diverse
political views), were able to clear the 5% hurdle and win
Bundestag seats.

ECONOMY

Germany ranks among the world's most important economic powers.
From the 1948 currency reform until the early 1970s, it
experienced almost continuous economic expansion, but real growth
in gross national product (GNP) slowed and even declined from the
mid-1970s through the recession of the early 1980s.  Since then,
however, the FRG has experienced 8 consecutive years of economic
growth.  The German economy grew 4% in 1989 and should equal that
performance again in 1990.

Germans often describe their economic system as a "social market
economy."  Competition and free enterprise are fostered as a
matter of government policy.  However, the state also intervenes
in the economy through the provision of subsidies to selected
sectors and the ownership of some segments of the economy,
including such public services as railroad, airline, and
telephone systems.  The German government also provides an
extensive network of social services.

The FRG economy is heavily export oriented, with one-third of its
national output shipped abroad annually.  As a result, exports
have traditionally been a key element in German macro-economic
expansion.  Over the past 2 years, however, domestic demand has
been the main engine of economic growth.  The FRG has long been a
strong advocate of closer European economic integration, and its
economic and commercial policies are increasingly determined by
agreements among EC members.

Outside the EC, the United States, Austria, and Switzerland are
the FRG's major trading partners. The United States had sales of
about $20 billion (a 7.6% share of the FRG import market) in
1988.  In that year, the FRG exported goods valued at about $25
billion to the United States (an 8% share of the US import
market), including motor vehicles, machinery, chemicals, and
electrical equipment.  US sales to the FRG are concentrated in
chemicals, machinery, edible fats and oils, aircraft, electrical
equipment, and motor vehicles.

The FRG has followed a liberal policy toward foreign investment.
About 65% of US capital invested in the FRG is in
manufacturing--the largest share in the automobile industry--and
another 25% is in petroleum.  Total US assets in the FRG amounted
to $20 billion at the end of 1988.  German capital has come
increasingly to the United States. At the end of 1988, net FRG
direct investment amounted to $27 billion.

With the unification of the two German states, the FRG faces the
complex task of rapidly introducing a market economy in the East.
Since overall productivity in the former GDR was less than half
that in the FRG, closing the economic gap between East and West
will be a major undertaking.  The poor condition of basic
infrastructure and widespread environmental damage in the East
will further complicate the process of economic integration.
Private investment in eastern Germany has been slower than
expected, in large part since the issue of property ownership in
the former GDR has proven difficult to resolve.  But most
observers nevertheless continue to believe that after an initial
period of economic adjustment, eastern Germany will enter into an
era of rapid and sustained economic growth.

Principal US Officials
Ambassador--Vernon A. Walters
Deputy Chief of Mission--George F. Ward
Minister-Counselor for Political Affairs--Douglas H. Jones
Minister-Counselor for Economic Affairs--Donald B. Kursch
Minister-Counselor for Commercial Affairs-- John W. Bligh, Jr.
Minister-Counselor for Administrative Affairs--Harold W. Geisel
Minister-Counselor for Consular Affairs--Norman A. Singer
Minister-Counselor for Public Affairs--Cynthia J. Miller

The US embassy is located at Deichmanns Aue 29, 5300 Bonn 2 (tel.
0228-3391).  A US embassy office is in Berlin, and consulates
general are at Frankfurt, Hamburg, Munich, and Stuttgart.  A
consulate general is scheduled to open in 1991 in Leipzig.

FOREIGN RELATIONS

The unified Germany continues to emphasize close ties with the
United States, membership in NATO, progress toward further West
European integration, and improved relations with Eastern Europe.
The FRG took part in all of the joint postwar efforts aimed at
closer political, economic, and defense cooperation among the
countries of Western Europe.  The FRG is also a strong supporter
of the Conference on Security and Cooperation in Europe (CSCE),
which seeks to reduce tensions and improve
relations among the European nations, the US, and Canada.

During the postwar era, the FRG sought to improve its
relationship with the countries of Eastern Europe, initially
establishing trade agreements and, subsequently, diplomatic
relations.  With unification, German relations with Eastern
Europe have intensified.  The FRG and Poland signed a treaty
confirming the Oder-Neisse border on November 14, 1990, and are
negotiating a broader agreement to cover bilateral relations.
The FRG has also concluded four treaties with the Soviet Union
covering the overall bilateral relationship, economic relations,
the withdrawal of Soviet troops in the territory of the former
GDR, and FRG support for these troops.

US-GERMAN RELATIONS

US-German relations have been a focal point of American
involvement in Europe since the end of World War II.  The FRG
stands at the center of East-West relations, as well as of US
relations with the West Europeans in NATO and the European
Community.

But German-American ties extend back to the colonial era.  More
than 7 million Germans have immigrated over the last three
centuries, and today nearly 25% of all US citizens can claim
German ancestry.  In recognition of this heritage and the
importance of modern-day US-German ties, Congress has declared
October 6 to be "German-American Day."

The US objective in Germany remains the preservation and
consolidation of a close and vital relationship with the FRG not
only as friends and trading partners but also as allies sharing
common institutions.  During the 45 years in which Germany was
divided, the US role in Berlin and the large American military
presence in West Germany served as symbols of US commitment to
the preservation of peace and security in Europe.  Since German
unification, the US commitment to these goals has not changed.
American policies continue to be shaped by the awareness that the
security and prosperity of the United States and Germany
depend--to a major degree--on each other.

As allies in NATO, the United States and Germany work side by
side to maintain peace and freedom.  This unity and resolve made
possible the successful conclusion of the 1987 US-USSR
Intermediate-Range Nuclear Forces Treaty (INF), the Two-plus-Four
process which led to the Final Settlement Treaty, and the
November 1990 conventional armed forces in Europe (CFE)
agreement.

As two of the world's leading trading nations, the United States
and the FRG share a common, deep-seated commitment to an open and
expanding world economy.  After the United States, Germany is the
world's second leading trading nation.  It is the fourth largest
trading partner of the United States.

Personal ties between the United States and the FRG extend beyond
immigration to include lively foreign exchange programs, booming
tourism in both directions, and the presence in the FRG of large
numbers of American military personnel and their dependents.

The United States and the FRG have built a solid foundation of
bilateral cooperation in a relationship that has changed
significantly over four decades.  The historic unification of
Germany and the role played by the United States in that process
has served to strengthen ties between the two countries.  The
relationship now constitutes a mature partnership but remains
subject to occasional misunderstandings and differences.  These
strains tend to reflect the importance, variety, and intensity of
US-FRG ties and respective interests rather than fundamental
differences.

German-American political, economic, and security relationships
continue to be based on close consultation and coordination at
the most senior levels.  High-level visits take place frequently,
and the United States and the FRG cooperate actively in
international forums.

BERLIN

The Final Settlement Treaty ends Berlin's special status since
1945 as a separate area under Four Power control.  By the terms
of the treaty between the FRG and the GDR, Berlin becomes the
capital of a unified Germany, but a decision on the seat of
government has been left to the Bundestag elected in December
1990.  Berlin is also one of the Federal Republic's 16 Laender.
Its first united government since 1948 also was elected on
December 2, 1990.

The opening of the Berlin Wall on November 9, 1989, was a
watershed in the developments which culminated in German unity on
October 3, 1990.  The infamous 165-kilometer (103 mi.) wall
surrounding the Western sectors of the city has been torn down,
and the city is being physically reunited as streets, subways,
and rail lines are rejoined.

Shortly after World War II, Berlin became the seat of the Allied
Control Council, which was to govern Germany as a whole until the
conclusion of a peace settlement.  In 1948, however, the Soviets
refused to participate any longer in the quadripartite
administration of Germany.  At the same time, they also refused
to continue to cooperate in the joint administration of Berlin,
drove the government elected by the people of Berlin out of its
seat in the Soviet sector, and installed a communist regime in
its place.

Between then and unification, the Western Allies continued to
exercise supreme authority (effectively only in their sectors)
through the Allied Kommandatura.  To the degree compatible with
the city's special status, however, they turned over control and
management of city affairs to the Berlin Senat (executive) and
House of Representatives, governing bodies established by
constitutional process and chosen on the basis of free elections.
The Allies and the German authorities in the FRG and West Berlin
never recognized the communist city regime in East Berlin or GDR
authority there.

During the years of Berlin's isolation 176 kilometers (110 mi.)
inside the former GDR, the Western allies encouraged a close
relationship between the government of West Berlin and that of
the FRG.  Representatives of the city participated as non-voting
members in the FRG parliament; appropriate West German agencies,
such as the supreme administrative court, had their permanent
seats in the city; and the governing mayor of Berlin took his or
her turn as president of the Bundesrat.   In addition, the Allies
carefully consulted with the FRG and Berlin governments on
foreign policy questions involving unification and the status of
Berlin.

The Quadripartite Agreement on Berlin in 1971 also provided for
practical improvements in the life of Berliners.  It made
possible unhindered civilian access to Berlin and greater freedom
of movement between the eastern and western sectors for a period
of 20 years, in addition to containing a Soviet acknowledgment of
the ties that had grown between West Berlin and the FRG,
including the latter's right to represent Berlin abroad.

Between 1948 and 1990, major events such as fairs and festivals
were sponsored in West Berlin, and investment in commerce and
industry was encouraged by special concessionary tax legislation.
The results of such efforts, combined with effective city
administration and the Berliners' energy and spirit, have been
encouraging.  Berlin's morale has been sustained, and its
industrial production has considerably surpassed the prewar
level.  Although the Allies' responsibility has ended, they have
been asked to maintain a military presence in the city until the
Soviets have withdrawn completely.

Travel Notes
Climate and clothing:  Germany is in the temperate zone but is
cooler than much of the United States, especially in summer.
Lightweight summer clothing is seldom needed.

Customs and immigrations:  No visa is required of US citizens.
Innoculations are not required.

Health:  Community sanitation and cleanliness standards are high.
Drinking water, dairy products, and other foods are under strict
government control and generally meet or exceed US standards.

Telecommunications:  Telephone and telegraph services, domestic
and international, are efficient, although it is still difficult
to telephone from the territory of the former GDR.   Bonn is 6
hours ahead of eastern standard time.

Transportation:  Frankfurt's international airport is a center of
European air traffic.  Most airlines operate services to the FRG.
Express trains are available.  An extensive network of highways
(Autobahnen) connects most major cities.  Car rentals are
expensive but widely available.  Third-party liability insurance
is mandatory.  Mass transportation facilities (trains,
streetcars, subways) are crowded but efficient.  Taxis are
available in all cities.

Published by the United States Department of State --  Bureau of
Public Affairs  -- Office of  Public Communication -- Washington,
DC -- June 1991  -- Editor: Susan Holly

Department of State Publication 7834
Background Notes Series -- This material is in the public domain
and may  be reprinted without permission; citation of this source
is appreciated.

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