Chapter LXXVI: Section 3: , Taipei, Taiwan, telephone: 886 (2) 2162-2000, FAX (7)

India
The Indus Valley civilization, one of the oldest in the world,
dates back at least 5,000 years. Aryan tribes from the northwest
infiltrated onto Indian lands about 1500 B.C.; their merger with the
earlier Dravidian inhabitants created the classical Indian culture.
Arab incursions starting in the 8th century and Turkish in the 12th
were followed by those of European traders, beginning in the late
15th century. By the 19th century, Britain had assumed political
control of virtually all Indian lands. Indian armed forces in the
British army played a vital role in both World Wars. Nonviolent
resistance to British colonialism led by Mohandas GANDHI and
Jawaharlal NEHRU brought independence in 1947. The subcontinent was
divided into the secular state of India and the smaller Muslim state
of Pakistan. A third war between the two countries in 1971 resulted
in East Pakistan becoming the separate nation of Bangladesh. Despite
impressive gains in economic investment and output, India faces
pressing problems such as the ongoing dispute with Pakistan over
Kashmir, massive overpopulation, environmental degradation,
extensive poverty, and ethnic and religious strife.

Indian Ocean
The Indian Ocean is the third largest of the world's
five oceans (after the Pacific Ocean and Atlantic Ocean, but larger
than the Southern Ocean and Arctic Ocean). Four critically important
access waterways are the Suez Canal (Egypt), Bab el Mandeb
(Djibouti-Yemen), Strait of Hormuz (Iran-Oman), and Strait of
Malacca (Indonesia-Malaysia). The decision by the International
Hydrographic Organization in the spring of 2000 to delimit a fifth
ocean, the Southern Ocean, removed the portion of the Indian Ocean
south of 60 degrees south latitude.

Indonesia
The Dutch began to colonize Indonesia in the early 17th
century; the islands were occupied by Japan from 1942 to 1945.
Indonesia declared its independence after Japan's surrender, but it
required four years of intermittent negotiations, recurring
hostilities, and UN mediation before the Netherlands agreed to
relinquish its colony. Indonesia is the world's largest archipelagic
state and home to the world's largest Muslim population. Current
issues include: alleviating poverty, preventing terrorism,
consolidating democracy after four decades of authoritarianism,
implementing financial sector reforms, stemming corruption, and
holding the military and police accountable for human rights
violations. Indonesia was the nation worst hit by the December 2004
tsunami, which particularly affected Aceh province causing over
100,000 deaths and over $4 billion in damage. An additional
earthquake in March 2005 created heavy destruction on the island of
Nias. Reconstruction in these areas may take up to a decade. In
2005, Indonesia reached a historic peace agreement with armed
separatists in Aceh, but it continues to face a low intensity
separatist guerilla movement in Papua.

Iran
Known as Persia until 1935, Iran became an Islamic republic in
1979 after the ruling monarchy was overthrown and the shah was
forced into exile. Conservative clerical forces established a
theocratic system of government with ultimate political authority
nominally vested in a learned religious scholar. Iranian-US
relations have been strained since a group of Iranian students
seized the US Embassy in Tehran on 4 November 1979 and held it until
20 January 1981. During 1980-88, Iran fought a bloody, indecisive
war with Iraq that eventually expanded into the Persian Gulf and led
to clashes between US Navy and Iranian military forces between
1987-1988. Iran has been designated a state sponsor of terrorism for
its activities in Lebanon and elsewhere in the world and remains
subject to US economic sanctions and export controls because of its
continued involvement. Following the elections of a reformist
president and Majlis in the late 1990s, attempts to foster political
reform in response to popular dissatisfaction floundered as
conservative politicians prevented reform measures from being
enacted, increased repressive measures, and made electoral gains
against reformers. Parliamentary elections in 2004 and the August
2005 inauguration of a conservative stalwart as president, completed
the reconsolidation of conservative power in Iran's government.

Iraq
Formerly part of the Ottoman Empire, Iraq was occupied by
Britain during the course of World War I; in 1920, it was declared a
League of Nations mandate under UK administration. In stages over
the next dozen years, Iraq attained its independence as a kingdom in
1932. A "republic" was proclaimed in 1958, but in actuality a series
of military strongmen ruled the country until 2003, the last was
SADDAM Husayn. Territorial disputes with Iran led to an inconclusive
and costly eight-year war (1980-88). In August 1990, Iraq seized
Kuwait, but was expelled by US-led, UN coalition forces during the
Gulf War of January-February 1991. Following Kuwait's liberation,
the UN Security Council (UNSC) required Iraq to scrap all weapons of
mass destruction and long-range missiles and to allow UN
verification inspections. Continued Iraqi noncompliance with UNSC
resolutions over a period of 12 years led to the US-led invasion of
Iraq in March 2003 and the ouster of the SADDAM Husayn regime.
Coalition forces remain in Iraq under a UNSC mandate, helping to
provide security and to support the freely elected government. The
Coalition Provisional Authority, which temporarily administered Iraq
after the invasion, transferred full governmental authority on 28
June 2004 to the Iraqi Interim Government, which governed under the
Transitional Administrative Law for Iraq (TAL). Under the TAL,
elections for a 275-member Transitional National Assembly (TNA) were
held in Iraq on 30 January 2005. Following these elections, the
Iraqi Transitional Government (ITG) assumed office. The TNA was
charged with drafting Iraq's permanent constitution, which was
approved in a 15 October 2005 constitutional referendum. An election
under the constitution for a 275-member Council of Representatives
(CoR) was held on 15 December 2005. The CoR approval in the
selection of most of the cabinet ministers on 20 May 2006 marked the
transition from the ITG to Iraq's first constitutional government in
nearly a half-century.

Ireland
Celtic tribes arrived on the island between 600-150 B.C.
Invasions by Norsemen that began in the late 8th century were
finally ended when King Brian BORU defeated the Danes in 1014.
English invasions began in the 12th century and set off more than
seven centuries of Anglo-Irish struggle marked by fierce rebellions
and harsh repressions. A failed 1916 Easter Monday Rebellion touched
off several years of guerrilla warfare that in 1921 resulted in
independence from the UK for 26 southern counties; six northern
(Ulster) counties remained part of the UK. In 1948 Ireland withdrew
from the British Commonwealth; it joined the European Community in
1973. Irish governments have sought the peaceful unification of
Ireland and have cooperated with Britain against terrorist groups. A
peace settlement for Northern Ireland is being implemented with some
difficulties. In 2006, the Irish and British governments developed
and began working to implement the St. Andrew's Agreement, building
on the Good Friday Agreement approved in 1998.

Isle of Man
Part of the Norwegian Kingdom of the Hebrides until the
13th century when it was ceded to Scotland, the isle came under the
British crown in 1765. Current concerns include reviving the almost
extinct Manx Gaelic language. Isle of Man is a British crown
dependency, but is not part of the UK. However, the UK Government
remains constitutionally responsible for defense and international
representation.

Israel
Following World War II, the British withdrew from their
mandate of Palestine, and the UN partitioned the area into Arab and
Jewish states, an arrangement rejected by the Arabs. Subsequently,
the Israelis defeated the Arabs in a series of wars without ending
the deep tensions between the two sides. The territories Israel
occupied since the 1967 war are not included in the Israel country
profile, unless otherwise noted. On 25 April 1982, Israel withdrew
from the Sinai pursuant to the 1979 Israel-Egypt Peace Treaty.
Israel and Palestinian officials signed on 13 September 1993 a
Declaration of Principles (also known as the "Oslo Accords") guiding
an interim period of Palestinian self-rule. Outstanding territorial
and other disputes with Jordan were resolved in the 26 October 1994
Israel-Jordan Treaty of Peace. In addition, on 25 May 2000, Israel
withdrew unilaterally from southern Lebanon, which it had occupied
since 1982. In keeping with the framework established at the Madrid
Conference in October 1991, bilateral negotiations were conducted
between Israel and Palestinian representatives and Syria to achieve
a permanent settlement. In April 2003, US President BUSH, working in
conjunction with the EU, UN, and Russia - the "Quartet" - took the
lead in laying out a roadmap to a final settlement of the conflict
by 2005, based on reciprocal steps by the two parties leading to two
states, Israel and a democratic Palestine. However, progress toward
a permanent status agreement was undermined by Israeli-Palestinian
violence between September 2003 and February 2005. An
Israeli-Palestinian agreement reached at Sharm al-Sheikh in February
2005, along with an internally-brokered Palestinian ceasefire,
significantly reduced the violence. In the summer of 2005, Israel
unilaterally disengaged from the Gaza Strip, evacuating settlers and
its military. The election of HAMAS in January 2006 to head the
Palestinian Legislative Council froze relations between Israel and
the Palestinian Authority. Ehud OLMERT became prime minister in
March 2006; following an Israeli military operation in Gaza in
June-July 2006, he shelved plans to unilaterally evacuate from most
of the West Bank. The kidnapping of two Israeli soldiers by Lebanese
Hizballah led to a 34-day conflict in Lebanon in June-August 2006.

Italy
Italy became a nation-state in 1861 when the regional states
of the peninsula, along with Sardinia and Sicily, were united under
King Victor EMMANUEL II. An era of parliamentary government came to
a close in the early 1920s when Benito MUSSOLINI established a
Fascist dictatorship. His disastrous alliance with Nazi Germany led
to Italy's defeat in World War II. A democratic republic replaced
the monarchy in 1946 and economic revival followed. Italy was a
charter member of NATO and the European Economic Community (EEC). It
has been at the forefront of European economic and political
unification, joining the Economic and Monetary Union in 1999.
Persistent problems include illegal immigration, organized crime,
corruption, high unemployment, sluggish economic growth, and the low
incomes and technical standards of southern Italy compared with the
prosperous north.

Jamaica
The island - discovered by Christopher COLUMBUS in 1494 -
was settled by the Spanish early in the 16th century. The native
Taino Indians, who had inhabited Jamaica for centuries, were
gradually exterminated, replaced by African slaves. England siezed
the island in 1655 and a plantation economy - based on sugar, cocoa,
and coffee - was established. The abolition of slavery in 1834 freed
a quarter million slaves, many of which became small farmers.
Jamaica gradually obtained increasing independence from Britain, and
in 1958 it joined other British Caribbean colonies in forming the
Federation of the West Indies. Jamaica gained full independence when
it withdrew from the federation in 1962. Deteriorating economic
conditions during the 1970s led to recurrent violence as rival gangs
created by the major political parties evolved into powerful
organized crime networks involved in international drug smuggling
and money laundering. The cycle of violence, drugs, and poverty has
served to impoverish large sectors of the populace. Nonetheless,
many rural and resort areas remain relatively safe and contribute
substantially to the economy.

Jan Mayen
This desolate, mountainous island was named after a Dutch
whaling captain who indisputably discovered it in 1614 (earlier
claims are inconclusive). Visited only occasionally by seal hunters
and trappers over the following centuries, the island came under
Norwegian sovereignty in 1929. The long dormant Haakon VII
Toppen/Beerenberg volcano resumed activity in 1970; it is the
northernmost active volcano on earth.

Japan
In 1603, a Tokugawa shogunate (military dictatorship) ushered
in a long period of isolation from foreign influence in order to
secure its power. For 250 years this policy enabled Japan to enjoy
stability and a flowering of its indigenous culture. Following the
Treaty of Kanagawa with the US in 1854, Japan opened its ports and
began to intensively modernize and industrialize. During the late
19th and early 20th centuries, Japan became a regional power that
was able to defeat the forces of both China and Russia. It occupied
Korea, Formosa (Taiwan), and southern Sakhalin Island. In 1931-32
Japan occupied Manchuria, and in 1937 it launched a full-scale
invasion of China. Japan attacked US forces in 1941 - triggering
America's entry into World War II - and soon occupied much of East
and Southeast Asia. After its defeat in World War II, Japan
recovered to become an economic power and a staunch ally of the US.
While the emperor retains his throne as a symbol of national unity,
actual power rests in networks of powerful politicians, bureaucrats,
and business executives. The economy experienced a major slowdown
starting in the 1990s following three decades of unprecedented
growth, but Japan still remains a major economic power, both in Asia
and globally.

Jarvis Island
First discovered by the British in 1821, the
uninhabited island was annexed by the US in 1858, but abandoned in
1879 after tons of guano had been removed. The UK annexed the island
in 1889, but never carried out plans for further exploitation. The
US occupied and reclaimed the island in 1935. Abandoned after World
War II, the island is currently a National Wildlife Refuge
administered by the US Department of the Interior.

Jersey
Jersey and the other Channel Islands represent the last
remnants of the medieval Dukedom of Normandy that held sway in both
France and England. These islands were the only British soil
occupied by German troops in World War II. Jersey is a British crown
dependency, but is not part of the UK. However, the UK Government is
constitutionally responsible for defense and international
representation.

Johnston Atoll
Both the US and the Kingdom of Hawaii annexed
Johnston Atoll in 1858, but it was the US that mined the guano
deposits until the late 1880s. Johnston and Sand Islands were
designated wildlife refuges in 1926. The US Navy took over the atoll
in 1934, and subsequently the US Air Force assumed control in 1948.
The site was used for high-altitude nuclear tests in the 1950s and
1960s, and until late in 2000 the atoll was maintained as a storage
and disposal site for chemical weapons. Munitions destruction is now
complete. Cleanup and closure of the facility was completed by May
2005.

Jordan
Following World War I and the dissolution of the Ottoman
Empire, the UK received a mandate to govern much of the Middle East.
Britain separated out a semi-autonomous region of Transjordan from
Palestine in the early 1920s, and the area gained its independence
in 1946; it adopted the name of Jordan in 1950. The country's
long-time ruler was King HUSSEIN (1953-99). A pragmatic leader, he
successfully navigated competing pressures from the major powers
(US, USSR, and UK), various Arab states, Israel, and a large
internal Palestinian population, despite several wars and coup
attempts. In 1989 he reinstituted parliamentary elections and
gradual political liberalization; in 1994 he signed a peace treaty
with Israel. King ABDALLAH II, the son of King HUSSEIN, assumed the
throne following his father's death in February 1999. Since then, he
has consolidated his power and undertaken an aggressive economic
reform program. Jordan acceded to the World Trade Organization in
2000, and began to participate in the European Free Trade
Association in 2001. After a two-year delay, parliamentary and
municipal elections took place in the summer of 2003. The prime
minister appointed in November 2005 stated the government would
focus on political reforms, improving conditions for the poor, and
fighting corruption.

Juan de Nova Island
Named after a famous 15th century Spanish
navigator and explorer, the island has been a French possession
since 1897. It has been exploited for its guano and phosphate.
Presently a small military garrison oversees a meteorological
station.

Kazakhstan
Native Kazakhs, a mix of Turkic and Mongol nomadic tribes
who migrated into the region in the 13th century, were rarely united
as a single nation. The area was conquered by Russia in the 18th
century, and Kazakhstan became a Soviet Republic in 1936. During the
1950s and 1960s agricultural "Virgin Lands" program, Soviet citizens
were encouraged to help cultivate Kazakhstan's northern pastures.
This influx of immigrants (mostly Russians, but also some other
deported nationalities) skewed the ethnic mixture and enabled
non-Kazakhs to outnumber natives. Independence in 1991 caused many
of these newcomers to emigrate. Current issues include: developing a
cohesive national identity; expanding the development of the
country's vast energy resources and exporting them to world markets;
achieving a sustainable economic growth outside the oil, gas, and
mining sectors; and strengthening relations with neighboring states
and other foreign powers.

Kenya
Founding president and liberation struggle icon Jomo KENYATTA
led Kenya from independence in 1963 until his death in 1978, when
President Daniel Toroitich arap MOI took power in a constitutional
succession. The country was a de facto one-party state from 1969
until 1982 when the ruling Kenya African National Union (KANU) made
itself the sole legal party in Kenya. MOI acceded to internal and
external pressure for political liberalization in late 1991. The
ethnically fractured opposition failed to dislodge KANU from power
in elections in 1992 and 1997, which were marred by violence and
fraud, but were viewed as having generally reflected the will of the
Kenyan people. President MOI stepped down in December 2002 following
fair and peaceful elections. Mwai KIBAKI, running as the candidate
of the multiethnic, united opposition group, the National Rainbow
Coalition (NARC), defeated KANU candidate Uhuru KENYATTA and assumed
the presidency following a campaign centered on an anticorruption
platform. KIBAKI's NARC coalition splintered in 2005 over the
constitutional review process. Government defectors joined with KANU
to form a new opposition coalition, the Orange Democratic Movement,
which defeated the government's draft constitution in a popular
referendum in November 2005.

Kingman Reef
The US annexed the reef in 1922. Its sheltered lagoon
served as a way station for flying boats on Hawaii-to-American Samoa
flights during the late 1930s. There are no terrestrial plants on
the reef, which is frequently awash, but it does support abundant
and diverse marine fauna and flora. In 2001, the waters surrounding
the reef out to 12 nm were designated a US National Wildlife Refuge.

Kiribati
The Gilbert Islands were granted self-rule by the UK in
1971 and complete independence in 1979 under the new name of
Kiribati. The US relinquished all claims to the sparsely inhabited
Phoenix and Line Island groups in a 1979 treaty of friendship with
Kiribati.

Korea, North
An independent kingdom for much of its long history,
Korea was occupied by Japan in 1905 following the Russo-Japanese
War. Five years later, Japan formally annexed the entire peninsula.
Following World War II, Korea was split with the northern half
coming under Soviet-sponsored Communist domination. After failing in
the Korean War (1950-53) to conquer the US-backed Republic of Korea
(ROK) in the southern portion by force, North Korea (DPRK), under
its founder President KIM Il-so'ng, adopted a policy of ostensible
diplomatic and economic "self-reliance" as a check against excessive
Soviet or Communist Chinese influence. The DPRK demonized the US as
the ultimate threat to its social system through state-funded
propaganda, and molded political, economic, and military policies
around the core ideological objective of eventual unification of
Korea under Pyongyang's control. KIM's son, the current ruler KIM
Jong Il, was officially designated as his father's successor in
1980, assuming a growing political and managerial role until the
elder KIM's death in 1994. After decades of economic mismanagement
and resource misallocation, the DPRK since the mid-1990s has relied
heavily on international aid to feed its population while continuing
to expend resources to maintain an army of 1 million. North Korea's
long-range missile development, as well as its nuclear, chemical,
and biological weapons programs and massive conventional armed
forces, are of major concern to the international community. In
December 2002, following revelations that the DPRK was pursuing a
nuclear weapons program based on enriched uranium in violation of a
1994 agreement with the US to freeze and ultimately dismantle its
existing plutonium-based program, North Korea expelled monitors from
the International Atomic Energy Agency (IAEA). In January 2003, it
declared its withdrawal from the international Non-Proliferation
Treaty. In mid-2003 Pyongyang announced it had completed the
reprocessing of spent nuclear fuel rods (to extract weapons-grade
plutonium) and was developing a "nuclear deterrent." Since August
2003, North Korea has participated in the Six-Party Talks with
China, Japan, Russia, South Korea, and the US designed to resolve
the stalemate over its nuclear programs. The fourth round of
Six-Party Talks were held in Beijing during July-September 2005. All
parties agreed to a Joint Statement of Principles in which, among
other things, the six parties unanimously reaffirmed the goal of
verifiable denuclearization of the Korean Peninsula in a peaceful
manner. In the Joint Statement, the DPRK committed to "abandoning
all nuclear weapons and existing nuclear programs and returning, at
an early date, to the Treaty on the Non-Proliferation of Nuclear
Weapons and to IAEA safeguards." The Joint Statement also commits
the US and other parties to certain actions as the DPRK
denuclearizes. The US offered a security assurance, specifying that
it had no nuclear weapons on ROK territory and no intention to
attack or invade the DPRK with nuclear or other weapons. The US and
DPRK will take steps to normalize relations, subject to the DPRK's
implementing its denuclearization pledge and resolving other
longstanding concerns. While the Joint Statement provides a vision
of the end-point of the Six-Party process, much work lies ahead to
implement the elements of the agreement.

Korea, South
An independent Korean state or collection of states has
existed almost continuously for several millennia. Between its
initial unification in the 7th century - from three predecessor
Korean states - until the 20th century, Korea existed as a single
independent country. In 1905, following the Russo-Japanese War,
Korea became a protectorate of imperial Japan, and in 1910 it was
annexed as a colony. Korea regained its independence following
Japan's surrender to the United States in 1945. After World War II,
a Republic of Korea (ROK) was set up in the southern half of the
Korean Peninsula while a Communist-style government was installed in
the north (the DPRK). During the Korean War (1950-53), US troops and
UN forces fought alongside soldiers from the ROK to defend South
Korea from DPRK attacks supported by China and the Soviet Union. An
armistice was signed in 1953, splitting the peninsula along a
demilitarized zone at about the 38th parallel. Thereafter, South
Korea achieved rapid economic growth with per capita income rising
to roughly 14 times the level of North Korea. In 1993, KIM Yo'ng-sam
became South Korea's first civilian president following 32 years of
military rule. South Korea today is a fully functioning modern
democracy. In June 2000, a historic first North-South summit took
place between the South's President KIM Tae-chung and the North's
leader KIM Jong Il.

Kuwait
Britain oversaw foreign relations and defense for the ruling
Kuwaiti AL-SABAH dynasty from 1899 until independence in 1961.
Kuwait was attacked and overrun by Iraq on 2 August 1990. Following
several weeks of aerial bombardment, a US-led, UN coalition began a
ground assault on 23 February 1991 that liberated Kuwait in four
days. Kuwait spent more than $5 billion to repair oil infrastructure
damaged during 1990-91. The AL-SABAH family has ruled since
returning to power in 1991, and reestablished an elected legislature
that in recent years has become increasingly assertive.

Kyrgyzstan
A Central Asian country of incredible natural beauty and
proud nomadic traditions, Kyrgyzstan was annexed by Russia in 1864;
it achieved independence from the Soviet Union in 1991. Nationwide
demonstrations in the spring of 2005 resulted in the ouster of
President Askar AKAYEV, who had run the country since 1990.
Subsequent presidential elections in July 2005 were won
overwhelmingly by former prime minister Kurmanbek BAKIYEV. The
political opposition organized demonstrations in Bishkek in in
April, May, and November 2006 resulting in the adoption of new
constitution that transfered some of the president's powers to
parliament and the government. Current concerns include:
privatization of state-owned enterprises, expansion of democracy and
political freedoms, reduction of corruption, improving interethnic
relations, and combating terrorism.

Laos
Modern-day Laos has its roots in the ancient Lao kingdom of Lan
Xang, established in the 14th Century under King FA NGUM. For three
hundred years Lan Xang included large parts of present-day Cambodia
and Thailand, as well as all of what is now Laos. After centuries of
gradual decline, Laos came under the control of Siam (Thailand) from
the late 18th century until the late 19th century when it became
part of French Indochina. The Franco-Siamese Treaty of 1907 defined
the current Lao border with Thailand. In 1975, the Communist Pathet
Lao took control of the government ending a six-century-old monarchy
and instituting a strict socialist regime closely aligned to
Vietnam. A gradual return to private enterprise and the
liberalization of foreign investment laws began in 1986. Laos became
a member of ASEAN in 1997.

Latvia
After a brief period of independence between the two World
Wars, Latvia was annexed by the USSR in 1940 - an action never
recognized by the US and many other countries. It reestablished its
independence in 1991 following the breakup of the Soviet Union.
Although the last Russian troops left in 1994, the status of the
Russian minority (some 30% of the population) remains of concern to
Moscow. Latvia joined both NATO and the EU in the spring of 2004.

Lebanon
Following the capture of Syria from the Ottoman Empire by
Anglo-French forces in 1918, France received a mandate over this
territory and separated out a region of Lebanon in 1920. France
granted this area independence in 1943. A 15-year civil war
(1976-1991) devastated the country, but Lebanon has since made
progress toward rebuilding its political institutions. Under the
Ta'if Accord - the blueprint for national reconciliation - the
Lebanese established a more equitable political system, particularly
by giving Muslims a greater voice in the political process while
institutionalizing sectarian divisions in the government. Since the
end of the war, Lebanon has conducted several successful elections,
most militias have been disbanded, and the Lebanese Armed Forces
(LAF) have extended authority over about two-thirds of the country.
Hizballah, a radical Shi'a organization listed by the US State
Department as a Foreign Terrorist Organization, retains its weapons.
During Lebanon's civil war, the Arab League legitimized in the Ta'if
Accord Syria's troop deployment, numbering about 16,000 based mainly
east of Beirut and in the Bekaa Valley. Damascus justified its
continued military presence in Lebanon by citing Beirut's requests
and the failure of the Lebanese Government to implement all of the
constitutional reforms in the Ta'if Accord. Israel's withdrawal from
southern Lebanon in May 2000, however, encouraged some Lebanese
groups to demand that Syria withdraw its forces as well. The passage
of UNSCR 1559 in early October 2004 - a resolution calling for Syria
to withdraw from Lebanon and end its interference in Lebanese
affairs - further emboldened Lebanese groups opposed to Syria's
presence in Lebanon. The assassination of former Prime Minister
Rafiq HARIRI and 20 others in February 2005 led to massive
demonstrations in Beirut against the Syrian presence ("the Cedar
Revolution"). Syria finally withdrew the remainder of its military
forces from Lebanon in April 2005. In May-June 2005, Lebanon held
its first legislative elections since the end of the civil war free
of foreign interference, handing a majority to the bloc led by Saad
HARIRI, the slain prime minister's son. Hizballah kidnapped two
Israeli soldiers in July 2006 leading to a 34-day conflict with
Israel. UNSCR 1701, which passed in August 2006, called for the
disarmament of Hizballah.

Lesotho
Basutoland was renamed the Kingdom of Lesotho upon
independence from the UK in 1966. The Basuto National Party ruled
for the first two decades. King MOSHOESHOE was exiled in 1990, but
returned to Lesotho in 1992 and reinstated in 1995. Constitutional
government was restored in 1993 after 7 years of military rule. In
1998, violent protests and a military mutiny following a contentious
election prompted a brief but bloody intervention by South African
and Botswanan military forces under the aegis of the Southern
African Development Community. Constitutional reforms have since
restored political stability; peaceful parliamentary elections were
held in 2002.

Liberia
Settlement of freed slaves from the US in what is today
Liberia began in 1822; by 1847, the Americo-Liberians were able to
establish a republic. William TUBMAN, president from 1944-71, did
much to promote foreign investment and to bridge the economic,
social, and political gaps between the descendents of the original
settlers and the inhabitants of the interior. In 1980, a military
coup led by Samuel DOE ushered in a decade of authoritarian rule. In
December 1989, Charles TAYLOR launched a rebellion against DOE's
regime that led to a prolonged civil war in which DOE himself was
killed. A period of relative peace in 1997 allowed for elections
that brought TAYLOR to power, but major fighting resumed in 2000. An
August 2003, peace agreement ended the war and prompted the
resignation of former president Charles TAYLOR, who was exiled to
Nigeria. After two years of rule by a transitional government,
democratic elections in late 2005 brought President Ellen JOHNSON
SIRLEAF to power. The UN Mission in Liberia (UNMIL), which maintains
a strong presence throughout the country, completed a disarmament
program for former combatants in late 2004, but the security
situation is still volatile and the process of rebuilding the social
and economic structure of this war-torn country remains sluggish.

Libya
The Italians supplanted the Ottoman Turks from the area around
Tripoli in 1911 and did not relinquish their hold until 1943 when
defeated in World War II. Libya then passed to UN administration and
achieved independence in 1951. Following a 1969 military coup, Col.
Muammar Abu Minyar al-QADHAFI began to espouse his own political
system, the Third Universal Theory. The system is a combination of
socialism and Islam derived in part from tribal practices and is
supposed to be implemented by the Libyan people themselves in a
unique form of "direct democracy." QADHAFI has always seen himself
as a revolutionary and visionary leader. He used oil funds during
the 1970s and 1980s to promote his ideology outside Libya,
supporting subversives and terrorists abroad to hasten the end of
Marxism and capitalism. In addition, beginning in 1973, he engaged
in military operations in northern Chad's Aozou Strip - to gain
access to minerals and to use as a base of influence in Chadian
politics - but was forced to retreat in 1987. UN sanctions in 1992
isolated QADHAFI politically following the downing of Pan AM Flight
103 over Lockerbie, Scotland. Libyan support for terrorism appeared
to have decreased after the imposition of sanctions. During the
1990s, QADHAFI also began to rebuild his relationships with Europe.
UN sanctions were suspended in April 1999 and finally lifted in
September 2003 after Libya resolved the Lockerbie case. In December
2003, Libya announced that it had agreed to reveal and end its
programs to develop weapons of mass destruction, and QADHAFI has
made significant strides in normalizing relations with western
nations since then. He has received various Western European leaders
as well as many working-level and commercial delegations, and made
his first trip to Western Europe in 15 years when he traveled to
Brussels in April 2004. QADHAFI also resolved in 2004 some of the
outstanding cases against his government for terrorist activities in
the 1980s by compensating some families of victims of the Pan Am
103, French airliner UTA, and La Belle disco bombings. The US
resumed full diplomatic relations with Libya in May 2006 and
rescinded Libya's designation as a state sponsor of terrorism in
June.

Liechtenstein
The Principality of Liechtenstein was established
within the Holy Roman Empire in 1719; it became a sovereign state in
1806. Until the end of World War I, it was closely tied to Austria,
but the economic devastation caused by that conflict forced
Liechtenstein to enter into a customs and monetary union with
Switzerland. Since World War II (in which Liechtenstein remained
neutral), the country's low taxes have spurred outstanding economic
growth. Shortcomings in banking regulatory oversight resulted in
concerns about the use of financial institutions for money
laundering. However, Liechtenstein implemented anti-money-laundering
legislation over the past several years and a Mutual Legal
Assistance Treaty with the US went into effect in 2003.

Lithuania
Independent between the two World Wars, Lithuania was
annexed by the USSR in 1940 - an action never recognized by the US.
On 11 March 1990, Lithuania became the first of the Soviet republics
to declare its independence, but Moscow did not recognize this
proclamation until September of 1991 (following the abortive coup in
Moscow). The last Russian troops withdrew in 1993. Lithuania
subsequently restructured its economy for integration into Western
European institutions; it joined both NATO and the EU in the spring
of 2004.

Luxembourg
Founded in 963, Luxembourg became a grand duchy in 1815
and an independent state under the Netherlands. It lost more than
half of its territory to Belgium in 1839, but gained a larger
measure of autonomy. Full independence was attained in 1867. Overrun
by Germany in both World Wars, it ended its neutrality in 1948 when
it entered into the Benelux Customs Union and when it joined NATO
the following year. In 1957, Luxembourg became one of the six
founding countries of the European Economic Community (later the
European Union), and in 1999 it joined the euro currency area.

Macau
Colonized by the Portuguese in the 16th century, Macau was the
first European settlement in the Far East. Pursuant to an agreement
signed by China and Portugal on 13 April 1987, Macau became the
Macau Special Administrative Region (SAR) of China on 20 December
1999. China has promised that, under its "one country, two systems"
formula, China's socialist economic system will not be practiced in
Macau, and that Macau will enjoy a high degree of autonomy in all
matters except foreign and defense affairs for the next 50 years.

Macedonia
Macedonia gained its independence peacefully from
Yugoslavia in 1991, but Greece's objection to the new state's use of
what it considered a Hellenic name and symbols delayed international
recognition, which occurred under the provisional designation of
"the Former Yugoslav Republic of Macedonia." In 1995, Greece lifted
a 20-month trade embargo and the two countries agreed to normalize
relations. The United States began referring to Macedonia by its
constitutional name, Republic of Macedonia, in 2004 and negotiations
continue between Greece and Macedonia to resolve the name issue.
Some ethnic Albanians, angered by perceived political and economic
inequities, launched an insurgency in 2001 that eventually won the
support of the majority of Macedonia's Albanian population and led
to the internationally-brokered Framework Agreement, which ended the
fighting by establishing a set of new laws enhancing the rights of
minorities. The undetermined status of neighboring Kosovo,
implementation of the Framework Agreement, and a weak economy
continue to be challenges for Macedonia.

Madagascar
Formerly an independent kingdom, Madagascar became a
French colony in 1896, but regained its independence in 1960. During
1992-93, free presidential and National Assembly elections were
held, ending 17 years of single-party rule. In 1997, in the second
presidential race, Didier RATSIRAKA, the leader during the 1970s and
1980s, was returned to the presidency. The 2001 presidential
election was contested between the followers of Didier RATSIRAKA and
Marc RAVALOMANANA, nearly causing secession of half of the country.
In April 2002, the High Constitutional Court announced RAVALOMANANA
the winner.

Malawi
Established in 1891, the British protectorate of Nyasaland
became the independent nation of Malawi in 1964. After three decades
of one-party rule under President Hastings Kamuzu BANDA the country
held multiparty elections in 1994, under a provisional constitution
which came into full effect the following year. Current President
Bingu wa MUTHARIKA, elected in May 2004 after a failed attempt by
the previous president to amend the constitution to permit another
term, has struggled to assert his authority against his predecessor,
who still leads their shared political party. MUTHARIKA's
anti-corruption efforts have led to several high-level arrests and
one prominent conviction. Increasing corruption, population growth,
increasing pressure on agricultural lands, and the spread of
HIV/AIDS pose major problems for the country.

Malaysia
During the late 18th and 19th centuries, Great Britain
established colonies and protectorates in the area of current
Malaysia; these were occupied by Japan from 1942 to 1945. In 1948,
the British-ruled territories on the Malay Peninsula formed the
Federation of Malaya, which became independent in 1957. Malaysia was
formed in 1963 when the former British colonies of Singapore and the
East Malaysian states of Sabah and Sarawak on the northern coast of
Borneo joined the Federation. The first several years of the
country's history were marred by Indonesian efforts to control
Malaysia, Philippine claims to Sabah, and Singapore's secession from
the Federation in 1965. During the 22-year term of Prime Minister
MAHATHIR bin Mohamad (1981-2003), Malaysia was successful in
diversifying its economy from dependence on exports of raw
materials, to expansion in manufacturing, services, and tourism.

Maldives
The Maldives was long a sultanate, first under Dutch and
then under British protection. It became a republic in 1968, three
years after independence. Since 1978, President Maumoon Abdul GAYOOM
- currently in his sixth term in office - has dominated the islands'
political scene. Following riots in the capital Male in August 2004,
the president and his government pledged to embark upon democratic
reforms, including a more representative political system and
expanded political freedoms. Progress has been slow, however, and
many promised reforms have been delayed indefinitely. Tourism and
fishing are being developed on the archipelago.

Mali
The Sudanese Republic and Senegal became independent of France
in 1960 as the Mali Federation. When Senegal withdrew after only a
few months, what formerly made up the Sudanese Republic was renamed
Mali. Rule by dictatorship was brought to a close in 1991 by a coup
that ushered in democratic government. President Alpha KONARE won
Mali's first democratic presidential election in 1992 and was
reelected in 1997. In keeping with Mali's two-term constitutional
limit, KONARE stepped down in 2002 and was succeeded by Amadou TOURE.

Malta
Great Britain formally acquired possession of Malta in 1814.
The island staunchly supported the UK through both World Wars and
remained in the Commonwealth when it became independent in 1964. A
decade later Malta became a republic. Since about the mid-1980s, the
island has transformed itself into a freight transshipment point, a
financial center, and a tourist destination. Malta became an EU
member in May 2004.

Marshall Islands
After almost four decades under US administration
as the easternmost part of the UN Trust Territory of the Pacific
Islands, the Marshall Islands attained independence in 1986 under a
Compact of Free Association. Compensation claims continue as a
result of US nuclear testing on some of the atolls between 1947 and
1962. The Marshall Islands hosts the US Army Kwajalein Atoll (USAKA)
Reagan Missile Test Site, a key installation in the US missile
defense network.

Mauritania
Independent from France in 1960, Mauritania annexed the
southern third of the former Spanish Sahara (now Western Sahara) in
1976, but relinquished it after three years of raids by the
Polisario guerrilla front seeking independence for the territory.
Maaouya Ould Sid Ahmed TAYA seized power in a coup in 1984.
Opposition parties were legalized and a new constitution approved in
1991. Two multiparty presidential elections since then were widely
seen as flawed, but October 2001 legislative and municipal elections
were generally free and open. A bloodless coup in August 2005
deposed President TAYA and ushered in a military council headed by
Col. Ely Ould Mohamed VALL, which declared it would remain in power
for up to two years while it created conditions for genuine
democratic institutions and organized elections. Accordingly,
parliamentary elections were held in December of 2006 and senatorial
and presidential elections will follow (January and March 2007
respectively). The newly-elected legislature is expected to assume
power following the inauguration of the new president. For now,
however, Mauritania remains an autocratic state, and the country
continues to experience ethnic tensions among its black population
and different Moor (Arab-Berber) communities.

Mauritius
Although known to Arab and Malay sailors as early as the
10th century, Mauritius was first explored by the Portuguese in
1505; it was subsequently held by the Dutch, French, and British
before independence was attained in 1968. A stable democracy with
regular free elections and a positive human rights record, the
country has attracted considerable foreign investment and has earned
one of Africa's highest per capita incomes. Recent poor weather and
declining sugar prices have slowed economic growth, leading to some
protests over standards of living in the Creole community.

Mayotte
Mayotte was ceded to France along with the other islands of
the Comoros group in 1843. It was the only island in the archipelago
that voted in 1974 to retain its link with France and forego
independence.

Mexico
The site of advanced Amerindian civilizations, Mexico came
under Spanish rule for three centuries before achieving independence
early in the 19th century. A devaluation of the peso in late 1994
threw Mexico into economic turmoil, triggering the worst recession
in over half a century. The nation continues to make an impressive
recovery. Ongoing economic and social concerns include low real
wages, underemployment for a large segment of the population,
inequitable income distribution, and few advancement opportunities
for the largely Amerindian population in the impoverished southern
states. Elections held in July 2000 marked the first time since the
1910 Mexican Revolution that the opposition defeated the party in
government, the Institutional Revolutionary Party (PRI). Vicente FOX
of the National Action Party (PAN) was sworn in on 1 December 2000
as the first chief executive elected in free and fair elections.

Micronesia, Federated States of
In 1979 the Federated States of
Micronesia, a UN Trust Territory under US administration, adopted a
constitution. In 1986 independence was attained under a Compact of
Free Association with the US, which was amended and renewed in 2004.
Present concerns include large-scale unemployment, overfishing, and
overdependence on US aid.

Midway Islands
The US took formal possession of the islands in 1867.
The laying of the trans-Pacific cable, which passed through the
islands, brought the first residents in 1903. Between 1935 and 1947,
Midway was used as a refueling stop for trans-Pacific flights. The
US naval victory over a Japanese fleet off Midway in 1942 was one of
the turning points of World War II. The islands continued to serve
as a naval station until closed in 1993. Today the islands are a
national wildlife refuge. From 1996 to 2001 the refuge was open to
the public; it is now temporarily closed.

Moldova
Formerly part of Romania, Moldova was incorporated into the
Soviet Union at the close of World War II. Although independent from
the USSR since 1991, Russian forces have remained on Moldovan
territory east of the Dniester River supporting the Slavic majority
population, mostly Ukrainians and Russians, who have proclaimed a
"Transnistria" republic. The poorest nation in Europe, Moldova
became the first former Soviet state to elect a Communist as its
president in 2001.

Monaco
The Genoese built a fortress on the site of present-day
Monaco in 1215. The current ruling Grimaldi family secured control
in the late 13th century, and a principality was established in
1338. Economic development was spurred in the late 19th century with
a railroad linkup to France and the opening of a casino. Since then,
the principality's mild climate, splendid scenery, and gambling
facilities have made Monaco world famous as a tourist and recreation
center.

Mongolia
The Mongols gained fame in the 13th century when under
Chinggis KHAN they conquered a huge Eurasian empire. After his death
the empire was divided into several powerful Mongol states, but
these broke apart in the 14th century. The Mongols eventually
retired to their original steppe homelands and later came under
Chinese rule. Mongolia won its independence in 1921 with Soviet
backing. A Communist regime was installed in 1924. The ex-Communist
Mongolian People's Revolutionary Party (MPRP) won elections in 1990
and 1992, but was defeated by the Democratic Union Coalition (DUC)
in the 1996 parliamentary election. Since then, parliamentary
elections returned the MPRP overwhelmingly to power in 2000 and
produced a coalition government in 2004.

Montenegro
The use of the name Montenegro began in the 15th century
when the Crnojevic dynasty began to rule the Serbian principality of
Zeta; over subsequent centuries Montenegro was able to maintain its
independence from the Ottoman Empire. From the 16th to 19th
centuries, Montenegro became a theocracy ruled by a series of bishop
princes; in 1852, it was transformed into a secular principality.
After World War I, Montenegro was absorbed by the Kingdom of Serbs,
Croats, and Slovenes, which became the Kingdom of Yugoslavia in
1929; at the conclusion of World War II, it became a constituent
republic of the Socialist Federal Republic of Yugoslavia. When the
latter dissolved in 1992, Montenegro federated with Serbia, first as
the Federal Republic of Yugoslavia and, after 2003, in a looser
union of Serbia and Montenegro. In May 2006, Montenegro invoked its
right under the Constitutional Charter of Serbia and Montenegro to
hold a referendum on independence from the state union. The vote for
severing ties with Serbia exceeded 55% - the threshold set by the EU
- allowing Montenegro to formally declare its independence on 3 June
2006.

Montserrat
English and Irish colonists from St. Kitts first settled
on Montserrat in 1632; the first African slaves arrived three
decades later. The British and French fought for possesion of the
island for most of the 18th century, but it finally was confirmed as
a British possession in 1783. The island's sugar plantation economy
was converted to small farm landholdings in the mid 19th century.
Much of this island was devastated and two-thirds of the population
fled abroad because of the eruption of the Soufriere Hills Volcano
that began on 18 July 1995. Montserrat has endured volcanic activity
since, with the last eruption occurring in July 2003.

Morocco
In 788, about a century after the Arab conquest of North
Africa, successive Moorish dynasties began to rule in Morocco. In
the 16th century, the Sa'adi monarchy, particularly under Ahmad
AL-MANSUR (1578-1603), repelled foreign invaders and inaugurated a
golden age. In 1860, Spain occupied northern Morocco and ushered in
a half century of trade rivalry among European powers that saw
Morocco's sovereignty steadily erode; in 1912, the French imposed a
protectorate over the country. A protracted independence struggle
with France ended successfully in 1956. The internationalized city
of Tangier and most Spanish possessions were turned over to the new
country that same year. Morocco virtually annexed Western Sahara
during the late 1970s, but final resolution on the status of the
territory remains unresolved. Gradual political reforms in the 1990s
resulted in the establishment of a bicameral legislature, which
first met in 1997. Lower house elections were last held held in
September 2002 and upper house elections were last held in September
2006.

Mozambique
Almost five centuries as a Portuguese colony came to a
close with independence in 1975. Large-scale emigration by whites,
economic dependence on South Africa, a severe drought, and a
prolonged civil war hindered the country's development. The ruling
Front for the Liberation of Mozambique (FRELIMO) party formally
abandoned Marxism in 1989, and a new constitution the following year
provided for multiparty elections and a free market economy. A
UN-negotiated peace agreement between FRELIMO and rebel Mozambique
National Resistance (RENAMO) forces ended the fighting in 1992. In
December 2004, Mozambique underwent a delicate transition as Joaquim
CHISSANO stepped down after 18 years in office. His newly elected
successor, Armando Emilio GUEBUZA, has promised to continue the
sound economic policies that have encouraged foreign investment.

Namibia
South Africa occupied the German colony of South-West Africa
during World War I and administered it as a mandate until after
World War II, when it annexed the territory. In 1966 the Marxist
South-West Africa People's Organization (SWAPO) guerrilla group
launched a war of independence for the area that was soon named
Namibia, but it was not until 1988 that South Africa agreed to end
its administration in accordance with a UN peace plan for the entire
region. Namibia won its independence in 1990 and has been governed
by SWAPO since. Hifikepunye POHAMBA was elected president in
November 2004 in a landslide victory replacing Sam NUJOMA who led
the country during its first 14 years of self rule.

Nauru
The exact origins of the Nauruans are unclear, since their
language does not resemble any other in the Pacific. The island was
annexed by Germany in 1888 and its phosphate deposits began to be
mined early in the 20th century by a German-British consortium.
Nauru was occupied by Australian forces in World War I and
subsequently became a League of Nations mandate. After the Second
World War - and a brutal occupation by Japan - Nauru became a UN
trust territory. It achieved its independence in 1968 and joined the
UN in 1999 as the world's smallest independent republic.

Navassa Island
This uninhabited island was claimed by the US in 1857
for its guano. Mining took place between 1865 and 1898. The
lighthouse, built in 1917, was shut down in 1996 and administration
of Navassa Island transferred from the Coast Guard to the Department
of the Interior. A 1998 scientific expedition to the island
described it as a unique preserve of Caribbean biodiversity; the
following year it became a National Wildlife Refuge and annual
scientific expeditions have continued.

Nepal
In 1951, the Nepalese monarch ended the century-old system of
rule by hereditary premiers and instituted a cabinet system of
government. Reforms in 1990 established a multiparty democracy
within the framework of a constitutional monarchy. A Maoist
insurgency, launched in 1996, gained traction and threatened to
bring down the regime, especially after a negotiated cease-fire
between the Maoists and government forces broke down in August 2003.
In 2001, the crown prince massacred ten members of the royal family,
including the king and queen, and then took his own life. In October
2002, the new king dismissed the prime minister and his cabinet for
"incompetence" after they dissolved the parliament and were
subsequently unable to hold elections because of the ongoing
insurgency. While stopping short of reestablishing parliament, the
king in June 2004 reinstated the most recently elected prime
minister who formed a four-party coalition government. Citing
dissatisfaction with the government's lack of progress in addressing
the Maoist insurgency and corruption, the king in February 2005
dissolved the government, declared a state of emergency, imprisoned
party leaders, and assumed power. The king's government subsequently
released party leaders and officially ended the state of emergency
in May 2005, but the monarch retained absolute power until April
2006. After nearly three weeks of mass protests organized by the
seven-party opposition and the Maoists, the king allowed parliament
to reconvene on 28 April 2006. In November 2006, the government and
Maoists signed the Comprehensive Peace Accord to end the ten-year
insurgency.

Netherlands
The Dutch United Provinces declared their independence
from Spain in 1579; during the 17th century, they became a leading
seafaring and commercial power, with settlements and colonies around
the world. After a 20-year French occupation, a Kingdom of the
Netherlands was formed in 1815. In 1830 Belgium seceded and formed a
separate kingdom. The Netherlands remained neutral in World War I,
but suffered invasion and occupation by Germany in World War II. A
modern, industrialized nation, the Netherlands is also a large
exporter of agricultural products. The country was a founding member
of NATO and the EEC (now the EU), and participated in the
introduction of the euro in 1999.

Netherlands Antilles
Once the center of the Caribbean slave trade,
the island of Curacao was hard hit by the abolition of slavery in
1863. Its prosperity (and that of neighboring Aruba) was restored in
the early 20th century with the construction of oil refineries to
service the newly discovered Venezuelan oil fields. The island of
Saint Martin is shared with France; its southern portion is named
Sint Maarten and is part of the Netherlands Antilles; its northern
portion is called Saint-Martin and is part of Guadeloupe (France).

New Caledonia
Settled by both Britain and France during the first
half of the 19th century, the island was made a French possession in
1853. It served as a penal colony for four decades after 1864.
Agitation for independence during the 1980s and early 1990s ended in
the 1998 Noumea Accord, which over a period of 15 to 20 years will
transfer an increasing amount of governing responsibility from
France to New Caledonia. The agreement also commits France to
conduct as many as three referenda between 2013 and 2018, to decide
whether New Caledonia should assume full sovereignty and
independence.

New Zealand
The Polynesian Maori reached New Zealand in about A.D.
800. In 1840, their chieftains entered into a compact with Britain,
the Treaty of Waitangi, in which they ceded sovereignty to Queen
Victoria while retaining territorial rights. In that same year, the
British began the first organized colonial settlement. A series of
land wars between 1843 and 1872 ended with the defeat of the native
peoples. The British colony of New Zealand became an independent
dominion in 1907 and supported the UK militarily in both World Wars.
New Zealand's full participation in a number of defense alliances
lapsed by the 1980s. In recent years, the government has sought to
address longstanding Maori grievances.