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CONFIDENTIAL 73 /GS /CP Ho nduras August 1973 NATIONAL INTELLIGINCL URVLY CONFIDENTIAL NO FOREIGN OI S SEM APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 NATIONAL iNTELLIGENCE SURVEY PUBLICATIONS The basic unit of the NIS is the General Survey, which is now published in a bound -by- chapter format so that topics of greater per- ishability can be updated on an individual basis. These chapters Country Profile, The Society, Government and Politics, The Economy, Military Geog- raphy, Transportation and Telecommunications, Armed Forces, Science, and Intelligence and Security, provide the primary NIS coverage. Some chapters, particularly Science and Intelligr nce and Security, that are not pertinent to all countries, are produced selectively. For small countries requiring only minimal NIS treatment, the General Survey coverage, may be bound into one volume. Supplementing the General Survey is the NIS Basic Intelligence Fact book, a ready reference publication that semiannually updates key sta- tistical data found in the Survey. An unclassified edition of the factbook omits some details on the economy, the defense forces, and the intelligence and security organizations. Although detailed sections on many topics were part of the NIS Progr n, production of these sections has been phased out. Those pre- viously produced will continue to he available as long as the major portion of the study is considered valid. A quarterly listing of all active NIS units is published in the Inventory of Available NIS Publications, which is also bound into the concurrent classified Factbook. The Inventory lists all NIS units by area name and number and, lhcludes classification and date of issue; it thus facilitates the ordering of NIS units as well as their filing, cataloging, and utilization. Initial dissemination, additional copies of NIS units, or separate chapters of the General Surveys can be obtained directly or through liais :,i channels from the Central Intelligence Agency. The General Survey is prepared for the NIS by the Central Intelligence Agency r-id 'he Defense Intelligence Agency under the general direction of the NIS Committee. It is coordinated, edited, published, and dissemi- nated by the Central Intelligence Agency. \VAR \I \C This document contains information affecting the national defense of the United States, within the meaning of title 18, se�_tions 793 and 794 of the US code, as amended. Its transmission or revelation of it, contents to or receipt by an unauthorized person is prohibited by law. CLASSIFIED BY 019641. EXEMPT FROM GENERIL DECLASSIFI- CATION SCHEDULE OF E. O. 11652 EXEMPT[ CATEGORIES 5B (1), (2), (3). DECLASSIFIED ONLY ON APPROVAL OF THE DIRECTOR OF CENTRAL INTELLIGENCE. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 WARNING The NIS is National Intelligence and may not be re- leased or shown to representatives of any foreign govern- ment or international body except by specific authorization of the Director of Central Intelligence in accordance with the provisions of National Security Council Intelligence Di- rective No. 1. For NIS containing unclassified material, however, the portions so marked may be made available for official pur- poses to foreign nationals and nongovernment personnel provided no attribution is made to National Intelligence or the National Intelligence Survey. Subsections and graphics are individually classified o according to content. Classification /control designa- tions are: (U /OU) Unclassified /For Official Use Only (C) Confideni ;a) (S) Secret APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 GENERAL SURVEY CHAPTERS COUNTRY PROFILE Integrated perspective of the subject country Chronology Area Brief Summary map THE SOCIETY Social structure Population Labor Health Living conditions Social problems Religion Education Public in- formation Artistic expression GOVERNMENT AND POLITICS Political evo- lution of the state Governmental strength and stability Structure and function Political dv- narnics National policies "Threats to stabilit% The police Intelligence: and security Coun- tersubversion and counterinsurgency capabilities THE ECONOMY Appraisal of the economy Its structure agriculture, fisheries, forestry, fuels and power, metals and minerals, manufacturing and construction Domestic trade Economic polio% and development International economic re- lations TRANSPORTATION AND TELECOMMUNICATIONS Appraisal of systems Strategic mobility Railroads Highways Inland waterways Pipelines Ports Merchant marine Civil air Airfields The telecorn system MILITARY GEOGRAPHY 'Topography and climate Military geographic regions Strategic areas Internal routes Approaches: land, sea, air ARMED FORCES The defense establishment joint activities Ground forces Naval forces Air forces Paramilitary SCIENCE level of scientific advancement Or- ganization, planning, and financing of rese a Scientific education, manpower, and facilities a Major research fields INTELLIGENCE. AND SECURITY Structure of organizations concerned with internal security and foreign intelligence, their responsibilities, profes- sional standards, and interrelationships Mission, organization, functions, effectiveness and methods of operation of each service Biogr of key officials APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 Y J ff t oq a .,t �L yr" Y r 7 l t s' t i< Taj J C f y ,ss S i APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 F 3 )2 r; 1 r A K R 1 S,. i J n 0. ij 3 o Honduras A Land with Few Blessings 1 The Legacy and the land 2 The People and Their Needs 3 The Rulers and Their Institutions 5 Bananas and the Peasant 7 Breaking the Barrier of Inertia 8 Chronology .............................10 Area Brief .............................11 Summary Map follows 12 This Country Profile was prepared for the NIS by the Central Intelligence Agency. Research was sub- stantially completed b y f une 1973. CONFIDENTIAL No Fo{ :EU:v DI5SEM APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 41 et 41 disk. FIB I -44 L:. tl 'A110 I is APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200070013-4 A Lind with Few Blessings Honduras has two main claims to fame. It was the scene of a landing by Columbus in 1502 �one of the few spots of the hemisphere to be so honored by the great navigator. The name Honduras (Spanish for "depths derives from Columbus, who reportedly found the coastal water almost unfathomable. Subse- quent commentators have pronounced it an apt title for a country so long sunk in backwardness and misery. In more recent decades, Honduras' renown has derived from its reputation as a typical "banana republic." It is the world's fourth largest producer and second only to Ecuador as an exporter of the fragile fruit. Other cash crops, forestry, mining, and manufacturing con- tribute to the economy, but the banana is the vital ele- ment. It is fair to say that without the investment and know -how introduced by the two giant fruit com- panies, United and Standard, Honduras would be an even poorer place. (C) The country is overwhelmingly mestizo, Spanish speaking, and Roman Catholic. Group an- tagonisms have been little more than local rivalries, and the homogeneous populace has tended to be a fellowship of the poor. The greater numLer lead close to a subsistance existence in dusty rural towns and growing urban slums, where even safe drinking water and other basic services are almost totally lacking. Having learned from experience to expect little, the Honduran seldom strives to improve his condition. His personal pride is undiminished by hardship, but he has only a slight sense of community, let alone of nationhood. This and the lack of a sizable population lend the country an air of solitude. (U /OU) Only rarely have Honduran governments promoted social or economic progress on a national basis. Most have indulged strictly in self preservation, certainly a necessary and yet seemingly a vain choice in view of the dozens of coups and revolutions that have wracked the country in its 150 years of independence (though only two have occurred since 1932, which places Hon- duras among the more stable countries of Latin America). Nevertheless, for Honduras, democracy is an ideal that more often than not has failed in practice, and time after time the country's experience has been that of Latin America as a whole. A "great leader" enchants the people, installs his regime through questionable means, dominates the government, uses or alters the constitution to stay in power, and finally succumbs to a coup by an opposition force. This awkward system appears to work, and most Hon- durans apparently tolerate it. But still, there seems to exist the realization that fl-ere is a better way, and so the quest for a government operating on constitutional principles has not been abandoned. (C) Even geography has conspired to make Honduras a poor place, handicapped in its ability to pursue a uni- fied purpose. Bordering on Guatemala, Nicaragua, and El Salvador, it night be termed the "keystone state" of Central America Yet, this facet has made Honduras important only as a base for regional political intrigue. The land itself is largely a jumble of mountains, valleys, and coastal plains� likened by some to a crumpled ball of paper �that separates the people into small localities and makes of them rivals more than friends. Even the swift streams that race from mountain to sea subdivide the land, and by being primarily unnavigable, leave much of the country un- tamed and isolated. (U /OU) If the story of Honduras has not been filled with great men and great events, the latent strengths of its people may yet head the country toward better days. Observers have found them tenacious under heavy trials, civil with each other, gracious in the presence of "superior" foreigners, and quick to learn, when taught. Their country still possesses untapped natural wealth- fertile valley soil, large forests, sizable oceanic fisheries, a considerable hydroelectric potential, and mineral deposits of undetermined proportions. A tropical beauty produces moods of enchantment. What has been lacking is simply development cause that has been pursued only sporadically in recent years, and then by a procession of leaders who have largely failed their country. (C) APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 The Legacy and the Land (u/ou) Honduras rests on one of the early sites of civiliza- tion in the Western Hemisphere. Centuries before the Spaniards arri cd, Honduras was inhabited by Indian tribes, the greatest of whom were the Mavas� astronomers, mathematicians, engineers, and sculptors extraordinary. Mysteriously this cultue died out in the region in the 9th century A.D., allowing the jungle to swallow up one of the greatest of Mayan monumental cities, Copan. Partially resurrected from ruins, it stands as something of a reproach to the Hon- duras of today. A little more than 20 years after the landing of Columbus, Hernan Cortes, the "conqueror of Mex- ico," visited Honduras to establish his authority there, but found it uninviting. Nonetheless; handfuls of settlers trickled in over the years, combating the irregular terrain, the unhealthy climate, and hostile natives, when they were not squabbling among themselves and murdering each other. Withal,Non- duras remained a minor province of the Spanish em- pire, ruled from Guatemala and attracting chiefly those adventurers who believed the exaggerated tales of mineral riches or missionaries who anticipated hordes of converts. It shortly became apparent that Honduras lacked the wealth of adjacent provinces, and so prospered lit- tle. The talented and influential gravitated elsewhere, leaving the area largely to small -scale farming. The peasants readily intermarried with the Indians, mak- ing Honduras the racially well- blended land it is to- day. Otherwise, history drew a blank, and the cen- turies passed uneventfully, as only the name of the latest Spanish governor changed. Taking advantage of the struggles of other Latin American states against Spain, Honduras joined Guatemala, El Salvador, Niea;ragua, and Costa Rica in a bloodless and successful independence move in 1821. After attempts by Mexico to rule the region collapsed, representatives of the five met in 1823 to form the United P.ovinces of Central America, the first of several futile attempts to build a single Central American nation. Even the enlightened leadership of Francisco Morazan �later to be named the national hero of Honduras �could not salvage the dream, and the federation collapsed in 1838 under the burden of nationalistic fevers and liberal- conservative feuds. In 1859 a strange interlude was provided by the celebrated American filibuster William Walker �a self proclaimed liberator �when he led a brief military campaign against Honduras on behalf of local dis- sidents, and subsequently died by the fiAng squad. Another significant year was 19'i, when Samuel "Lemurray, a shrewd. Alabama merchant, acquired banana- growing land; which was later merged with the United Fruit Company. The first three decades of the 20th century witnessed a jumble of crises as new presidents, rewritten con- stitutions, and recurring coups tumbled over each oth ,-r in kaleidoscopic fashion. Finally, in 1932 Gen. Tiburcio Carias Andino arrived as national leader and established the stability of strongman rule for a remarkable 16 years (Built on the scale of a pro -foot- ball fullback, Carias survived by such precautions as having machineguns posted inside the cathedral when he worshipped.) A hand ,picked successor, Juan Manuel Galvez led the nation for 6 years of semiprogressive government before giving way to wily, conservative dictator, Julio Lozano. In 195 7 Ramon Villeda Morales, something of a novelty by reason of his progressive outlook and legitimate claim to office, instituted a program of social and economic reform, the likes of which had not been seen before. A coup at the tail end of Villeda's term resulted in the installation of Oswaldo Lopez Arellano, who was fated to be President during the bloody, -day border war with El Salvador in July 1969 (during which Salvadoran troops pushed as far as 45 miles inside Honduras). In 1971 there momentarily arose the promise of a new era when the two major parties, nor- mally blood enemies, signed a coalition pact and Ramon Ernesto uruz became President. After a short period this weak experimental regime collapsed; a coup followed in which Cruz was replaced by Lopez, and the country reverted to its old politica'. ways as Lopez dissolved Congress and proceeded to govern by decree. Political upheavals in Honduras, quite fortunately, are not matched by comparable physical instabilities. Spanning the Central American isthmus from the Pacific to the Caribbean, Honduras is a muscular land� four fifths mountainous �with peaks up to 9,- 400 feet, numerous plateaus, deep valleys, narrow in- land plains, and a partially s\yampy coastal fringe. Its volcanoes are dormant making it the only regional state so favored -and earth tremors, though frequent, are mild. Danger lurks, however, in hurricanes that sweep across the Caribbean and lash the coast. Heavy rains and thick forests blend to produce a panorama of APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 I i I natural beauty. Particularly impressive are the air plants (epiphytes) that slowly engulf many of the giant trees and the quetzal, a tropical bird of crimson and blue -green hues that is generally regarded as the most beautiful bird of its kind in the world. Shaped roughly like a squatty mushroom, Honduras comprises 43,300 square miles, making it second in size only to Nicaragua in Central America or slightly smaller than the state of Pennsylvania. The population is estimated at 2,813,000, only about 64 persons per square mile but burgeoning at the rate of 3.5% per an- num� assuming that Honduran statistics are accurate. The great majority of Hondurans live in one of two areas, the central plateau or the low -lying banana land of the northwest. Each area is served by one of the two major cities. Tegucigalpa, the political capital and the larger, is slow- paced, semifeudal, and somewhat isolated. Its charm lies in its temperate climate "an eternal spring" say some) and its red tile roofed homes that climb narrow cobblestone streets up steep hillsides. By contrast, San Pedro Sula is a boomtown, the commercial industrial hub of the nation, a relatively modern city of torrid heat and bustling businessmen. In its way, San Pedro Sula is unique, however �a place apart from the many sleepy, dusty towns that lack even a decent road. And "San Pedro" is even further removed from the wild, swampy NMas- quitia region of the northeast, Honduras' last frontier. What helps to make Honduras so distinctive regionally is the fact that it is the only country on the isthmus without a workable land transportation network. Despite recent roadbuilding efforts, the highway system is sparse. The most important route �and one of the few that is paved �is the North Road, connecting Puerto Cortes (the major port), San Pedro Sula, Tegucigalpa, and the Inter- American Highway. Even on it, deterioration, washouts, and meandering burros and peasants are potential hazards. The railroads, run chiefly by the banana com- panies, extend no more than 65 miles inland, and the decades -old dream of an interocean railway seems to have been abandoned. Still, the more remote districts of the country are accessible, by and large. In a typical blend of the Honduran primitive- modern lifestyle, the intrepid traveler can reach them by way of a winding footpath or in a small aircraft. The People and Their Needs (c) Statistics indicating that the dark- complexioned mestizos outnumber all other racia! groups combined by a 9:1 ratio tell only part of the story of Honduran society. Other groups exist in numbers and are impor- tant, but their absence from the mainstream of daily life heightens the impression of a mestizo- dominated ]arid. Indians, for example, constitute i% of the pop- ulation, but often they prefer to live apart, speaking their own tongues, observing their own customs, and going to town only when necessity beckons. Likewise, Negros and, to a lesser extent, .whites frequently have opted for a semi exclusive existence on the Caribbean based Islas de la Bahia (Bay Islands) or the north coast, where sorne of their forebears were old -time buc- caneers and slaves under the British flag. On the mainland, whites and mestizos generally have held preferred positions, but discrimination against Negroes and Indians has never been strong. N9ore often than not, social status cuts across racial lines and depends more on achievement than genetic 3 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 f Mothers receiving instruction at a public health center. YJ rt' makeup or ancestral ties. In poor Honduras, however, social mobility has its severe limits. Only recently has a viable middle class begun to develop, and the ranks of the wealthy are thin indeed. Almost alone among Latin American nations, Honduras lacks a long established oligarchy. Aside from ability and affluence, another mark of standing is family stability. The higher class man is generally married and stays married, even though he may keep a mistress on the side. The lower class man, generally regarding sex as a casual matter, often ig- nores the marriage ritual, perhaps to drift from woman to woman and leave a string of illegitimate children behind. Though guaranteed equal rights under the law, women for the greater part are expected to hold to a submissive pattern of behavior. For the ordinary Honduran the vital concern of life is to obtain the basic necessities of food and shelter. For many this is not easy. Life expectancy falls several vears short of the Latin American average of 57. Hous- ing may consist of clumps of r.iral mud wattle huts or 4 S urban packing -crate sluins. Food is a monotony of corn- and bean -based dishes. Undernourished, the Honduran is easy prey for intestinal and respiraton diseases. With few doctors and hospitals avail. ble. the masses apply folk medicine in the uncertain hope of miracle cures. For many, life is at a bare subsistence level. Much of the average man's personal income estimated at over 40%�goes for food. Other essentials, clothing and home furnishings, are frequently beyond reach, when available. Only a tiny minority of town dwellers can afford a car or telephone. The peasant has little need to concern himself with a pocketbook since he fre- quently exists on the limited fruits of the l7:nd, outside the money economy. Public entertainment in Honduras is also spare. Few towns offer more than a moviehouse or billiard parlor for post- siesta diversion. Radiobroadcasts� picked up over the ubiquitous Japanese transistors blanket the nation, but television is restricted to the large urban areas. Daily newspapers amount to less than half a APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 dozen and are of low quality. (ht a higher plane, few artists or scholars of note have been produced. Attempt- ing to build on a Spanish cultural heritage that was exceedingly thin, 1- Ionduran intellectuals have had dif- ficulty finding their own way. The educational system, though improved in recent years, offers little outlet for the bright and ambitious. Theoretically, education is available to all persons age 7 to 15, but all too often adequate schools and trained teachers are simply not available. Lately, Honduras was given a functional literacy rate of 3W the second lowest (next to Haiti) in the Western Hemisphere. higher education is largely limited to the National University, where political activism often takes priority over learning. The Roman Catholic Church, legally separate from the state, wields little influence in Honduras. Its coffers are quite empty, and its priests are generally few and of low caliber. It rarely engages in social ac- tion. And, .while the man in the street calls himself it Catholic. more often than not he knows litile of the dolma of his church, or even of its inner physical dimensions. A number of Protestant missionary sects have encamped in Honduras, but have established lit- tle hold. The government is left to improve the well -being of the people. Unfortunately, it lacks financial resources, trained administrators, know -how, and, most impor- tantly, will. Honduran regimes often project goals for social- action programs but frequently fail to get theta off the ground. And when they do, graft often siphons off what money there is. A notable exception to this pattern was forged by the Villeda government (1957 -63). It made progress with a social security law, a labor code, and an agrarian reform law, and took prot,:essive steps in the areas of education, public health, and housing. Thereafter, matters went backward. As of 1973, there were definite indications that the Lopez regime was trying to effect change, par- ticularly in land redistribution, but it too face; an up- hill battle. The Rulers and Their Institutions (c) Politics in Honduras aims at control of a con- stitutionally defined structure that is elastic enough to allow the ruling force to make of it what it will. The present constitution, promulgated in 1965, is the 12th under which Honduras has operated. Generally, little change is effected by succeeding documents, but they do serve to cover the latest coup with a veneer of legari- to. Primary power to run the country is vested in a President, elected by popuiar ballot to a single 6 -year term. Normally a 6ominant figure, the President may expect little opposition from his Council of Ministers, or from the National Congress, which is made up of the elected representatives of the IS regional departments and which generally acts as a rubber stamp. The principal groups contesting power in Honduras are the Nationalists and Like -.:1s. Essential] feuding clans, they are made up of men who play a ruthless game to seize power both within their own ranks and against the opposition. The National Party, basically more conservative, has been more expert in recent years at manipulating the political processes. Three splinter Communist parties, one professing allegiance to Moscow and two to Peking, are capable of stirring unrest, but they represent little internal threat. Generally, the ballot on election day is restricted to the two major parties, who regularly accuse each other of theft, fraud, and intimidation. A low level of voter par- ticipation reflects a high degree of voter apathy, es- pecially among the rural poor who through experience have come to doubt the promises of city -bound politicians. 5 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 Any bare -hones description of the Honduran Go�,eroment hogs the question of who actually runs thcr country. Without doubt, the military establish- it ^nt is the final arbiter, for no government can stay in pov, or against its active opposition a principle that in essence is even sanctioned by the constitution. Other power centers include i, small but growing dF�mocratic labor movement and organized business. Radical students, operating� sometirnes in violent out- bursts �from the university, and the weak but relative IN. independent voice of the press also have an impact. But in the end there is only one arbiter. Sometimes the military acts in the public interest, but always in its own interest; and when the time comes for a change of gove rnment, it feels little constraint against acting. For Honduras external affairs normally focus only on its immediate neighbors and the United States. Honduras participates in regional and world bodies. including the Organization of American States and the United Nations, but exerts little influence. The foreign outlook of the Hondurans is still colored by the grim little war with Ell Salvador of July 1969. Fueled by it longstanding border dispute and the issue of illegal aliens from overcrowded El Salvador, hostilities ul- timately were sparked by a hotly contested soccer match (soccer in this region being more than simple it national pastinle). By the tinge hostilities were called off Hondurans clearly were the losers and even more clearly were embittered against the peacekeepers� Ilrincipall toward the regional organizations and to some degree the United States.:ks ;.a result, Honduras began to hack away from regional cooperation, including that with the Central American Common Nlarket (CACN1), an organization with which it was already disillusioned. Also it began to look for a time to European nations rather than tile: United States for military supplies. Momentary Honduran pique with Washington, however, belies the fact that ties with the United States over the years have been close. While sonle elements have berated the United States for its alleged domineering stance and econonlic imperialism, the more prevalent attitude has been to see the "colossus of the North" as a beneficial big brother that call funnel economic and military aid into the needy homeland. In return, Honduras has sided with the United States in both World Wars, in the Cuban mis- sile crisis, and in the 1965 Dominican crisis. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 Bananas and the Peasant (c) Honduras is one of the least developed countries of Latin America. In 1971, its per capita GDI' Nvas about half the Latin American average: $260 compared to $530. For years, Honduras has run a balance of payments deficit. It is burdened %with a sizable external debt, chiefly as a result of loans from the World Bank and the Central American Batik for Economic Integra- tion. Defense and public improvement expenditures have outpaced increased tax revenues in recent years and resulted in growing budgetary deficits. All is not completely sour, however. In particular, a conservative monetary policy has lent the country at least an air of economic stability. The monetary unit, the lempira �named after the Indian chief who resisted Spanish conquest in the 16th century �has been maintainer) at a rate of 2 lempiras to the U.S. dollar since 1926, the year of its creation. Moreover, inflation has been kept largely in check, at least by Latin American standards. Even so, Honduran needs are multitudinous: more jobs and more job skills; land redistribution and it greater use of good growing land; larger social benefits for the productive members of society; vastly improved transportation facilities; an influx of foreign capital; tax reform; and a redistribution of local revenues, recently devoted to the 1969 Nvar and its aftermath, to care for domestic needs. Badly handicapped by its several shortcomings, the economy has tended to move forward only by inches. The blame perhaps rests chief- ly with the government, which until recently had largely refused to play the role of the spurs of the economy. Honduras must export to live, selling abroad its agricultural products chiefly bananas, as well as some coffee, cotton, meat, and timber �and importing a broad range of raw materials and manufactured goods not available locally. The United States is easily Honduras' chief commercial partner, accounting for about half of its trade. West Germany and Japan are distant runners -up. Trade with the CACM has fallen drastically since ties were broken with El Salvador in 1969 and Honduras reintroduced duties on CACM im- ports in January 1971, thereby becoming in effect a nonparticipating member of the organization. The backbrn: of the economy is agriculture, which regularly accounts foi more than one -third of the country's national and 70o of its export earnings. Two of every three employed Hondurans work the land. Unhappily, only 14% of the land is arable and only about half of that is cultivated. Moreover, productivity per acre ranks among the lowest in Latin America. Typically, the small farmer clings to his tiny hillside plot, while the good valley land is trampled by the grazing herds of the large landholder. The odds are heavy that the peasant has heard little or nothing of chemical fertilizers, crop rotation, irrigation, and ero- sion prevention. In sharp contrast to the small farmers stand the mighty fruit companies. United Fruit is rivaled only by Standard Fruit in banana production, an enterprise that has proved to be a r:.ther risky and time -con- suming undertaking, what with crop diseasr, bad weather, and a fluctuating sales market taking a toll of profits. Undeniably, United Fruit wields con- siderable influence in Honduras, as its critics are quick to point out. But it is also true that the firm has made a significant social as well as economic contribution in providing for its workers markedly better homes, stores, schools, and clinics than are normally available. The chief bane of the Honduran economy has been the failure to exploit .what natura' resources this small nation has. Huge stands of pine and hardwood trees including perhaps the greatest number of mahoghany trees in the world �have until recently either been ignored or harvested so poorly as to bring little profit. Some small -scale miring of precious and base: metals occurs sporadically, but in toga the nation's mineral supply has yet to be accurately es- timated. Only within the past few years has the fishing indus}ry, centered on the shrimp catch, attained com- mercial importance. Nor until recently has much been clone to promote tourism despite such attractions as Copan, the Islas de la Bahia beaches, and reasonably accessible hunting, hiking, and fishing. (Lago de Yo- joa, the country's largest, is reported to be so bursting with bass that these fish have turned cannibalistic.) Some effort has been put into manufacturing, but such enterprise remains something of a novelty in this least industrialized Central American state. Most of what exists, including a small steel mill, is located in San Pedro Sula or its environs. Food processing for ex- port and the manufacture of consumer items for the domestic market are undertaken there, though not ex- tensively. Such factors as inefficient labor and an- tiquated equipment result frequently in poor- quality, over- priced goods. Exceptions are found in American- sponsored efforts, such as shirt making, and in such native crafts as woodcarving. 7 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 Breaking the Barrier of Inertia (c) In recent times some progress has been ac- complished in making Honduras into a stable and viable national state. Yet forward movement has not been so great as to assure the country's future direc- tion. And if there is to be better future, what will bring it about? Various remedies have been offered. None is the panacea that some Hondurans have been prone to seek; there appear to be no easy remedies for national retardation. In the first instance, Hon- duras still requires certain basics that more ad- vanced societies take for grantea� better transportation, more electric powerplants, a decent telephone system, and a good Pacific port. In sum, Honduras simply lacks a solid takeoff poiit. Honduras seemingly must seek to improve on its nature in order to move forward economically. The na- tion apparently needs hope to spark a dormant work ethic �a profound belief that effort will create a better society. A greater sense of individual dedication to national efforts would be helpful, too. As it is, the real- ly talented Hondurans frequently opt out of con- tributing to their country's progress. Politicians may sit on their hands or leave the country during a rival regime, and frequently the wealthy may export their capital rather than risk investing in their own nation. The rather talented cabinet of the new Lopez regime may, however, prove a refreshing exception and begin a new trend. 0 It may be, too, that Honduras simply cannot copy, by itself, given its condition, but needs ouside help. Many Honduran politicians have bemoaned the lack of foreign im although at iimes doing little themselves to encourage it. Nlany Latin American ex- onomists have reasoned that all %would be well if the U.S. housewife would pay a few cents more a pound for bananas and coffee. Some have seen free trade within the CACM as a promising solution, but in prac- tice this concept has yet to materialize. As the Hondurans come increasingly to believe that they are their own best friends, as they now seem to be doing, they have the opportunity to reassess their capacities for growth. Again, it should be noted that Honduras has untapped natural resources capable of being exploited. Only about 15Si of the country's waterpower potential� estimated to be more than one -third of the total for Central America �has been used, for example. Agricultural production could be boosted by fairly simple methods �wider use of the steel plow, greater supplies of four wheeled carts, and the increased bulldozing of basic farm -to- market roads. The expenditure of greater sums on education could produce the sort of literate, skilled personnel that constitute one of the primary strengths of a modern society. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 9 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 Chronology (u/ou) 1502 Coluutbus macho: coast of llonduras during; fourth .�o.%�ag;e 1539 IlonduruS and four other provinces of Central America are ineorporatcd into captuincp general of Guatemala, adtninis- trative division of the X'icero}alty of New Spain, in the Spanish Indies. 1521 September Independence from Spain is gained and Honduras oveonles part of Mexican Empire. 1823 Honduras, Guatemala, 1 ?1 Salvador, Nicaragua, and Costa Rica form United Provinces of Central America. Francisco Moraza n of Honduras serves as President froru 1530 to collapse of federation ill late I83S. 1838 November Honduras declares independence from federation. 1932 -4S Dictatorship of Gen. 'I'iburcio arias Andino provides first per ;od of prolonged domestic peace. 19.15 October Juan M:1nUPl (;.tl.�ez (handpicked successor of Gen. ('arias) is elected President on National Party ticket. 1919 January President Gal.ez and Vice President Julio Lozano a e inaugurated for 6 -year term. 1951 May General strike paralyzes entire north coast area November Pmsident Galvez leaves country for "medical treatment" following indecisive elections; Vice President Lozano becomes Acting; President. December Newly elected Congress with mandate for settling; presidential election fails to convene: Lozano deelares himself dr f'orha Chief of State. 1956 August Revolt lguil)St Lozano's authoritarian tactics is quickly Suppressed: Liberal Party leaders are exiled. 10 October fraudulent election of Lozano's hatrlpic'ked Constituent Assembly results in bloodless military ct.ap; interiw utilirary junta assumes poker. 1951 July Defense Mini4er Col. Osvaldo Lopez Arellano enu�rg;es as strong; militari leader with ouster of Gen. Roque .l. Rodriguez froth interim junta. September Constituent Assembly is elected; Liberals will control b. .tide margin. November Dr. Ramon Cilleda Morales, liberal leader, is named con- stitutional President -eleet bY Constituent Assembly: ('ol. Os.caldo Lopez Arellauo becomes member of junta. December Cilleda Morales is inaug;ur :tcd President for 6 -Year term. Constituent Assembly becomes National Congress: ne.c con- stitution is promulgated: Lopez is appointed ('bief of the Armed forces. 1960 November Longstanding border dispute -vith Nicaragua is settled bY the International Court of .Illstic( disputed territory :nrarded to Honduras. 1963 October .\IiIitary coup by Lopez overthrows Cilleda, thus preventing: elections scheduled for 1:3 October. 1965 February Constituent Assembly elections are held: Nationalists ".vin" 35 seats to Liberals' 21) March. Constituent Assembly elects Lopez President of Honduras. Constituent Assembly changes states to National Congress. June Lopez is inattgur:ted for 6 -year term. 1967 May Honduran and Salvadoran troops clash in unclenr.,rcated border area. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 1968 1971 March January Gox �ernment part% rein�" 2.11 of the- 271; municipalities Major interest groups Ag;u units� pact governing; March through extensive fraud and coercion. election anti government that %eill follote. July June Honduras and EI Salvador exchange prisoners captured Manton Ernt.sto Cruz, elected on 26 March. is inaugurated during: the border clash in 1967. for 6 -year term. 1969 June 1972 December Itonduras and t�:1 *Saleador break relations over mistreatment of one another's nationals. Lopez ousts Cruz in bloodless milit:jrY coup; dissolves July congress and governs h d: tree. Hostilities erupt between EI Salvador and Honduras. The Organization of American States obtains cease -fire with great difficulty. s Area Brief LAND (UIOU): Size: 13,:300 sq. nti. (27.i million acres) Use: 7'%, cropland, 27 "o forested, 30'i� pasture, :36";, ceastc- land and built -up areas Land boundaries: 950 mi. WATER (UIOU): Limits of territorial waters (claimed): 12 n. vJ. Coastline: 510 tni. PEOPLE (UIOU): Population: 2,81:3,000, average annual growth rate :3.5' (1970) Ethnic divisions: m% mestizo. 7 Indian, 2 'i, Negro, and I' %o white Religer Ab!xtt 97%. nominally Roman Catholic Language: Spanish Literacy: 57.4%, of persons 10 tears of age and over (est. 1970) Labor force: 900,000 (est. mi(I- 1972); approximately I5%. agriculture, 12 financial and housing services, 8 manu- facturing;, 5 commerce, 9'%, other; S unemplo }�ed Organized labor: 7 1 U to 10%, of labor force (mid -1972) GOVERNMENT (UIOU): Legal name: Republic of Ilonduras Type: Republic Capi,al: Teguciga'^ I Political subdivision* 18 departments, 275 municipalities, I central district ('I'egtcigulpa`Comuaguela area) Legal system: 13used on Roman and Spanish civil law; some influence of English conenurtt Iaa�; constitution adopted 1965; judicial review' of acts in Supreme Court; legal education at t'niversitY of Honduras in Tegucigalpa: accepts compulsory IC-1 jurisdiction, with reservations Branches: Constitution provides for elected President, uni- cameral Icg;ishtture, and national judicial brunch Government leader: Gen. Osa�aldo Lopez Arellano, chief of state Suffrage: Universal and eotupulsory over age IN Elections: NI;LV 1971, Nationalist Part candidate won elec- tion; removed by coup in December 1972; next election February 1977; municipal elections March 197.1 Political parties and leaders: Liberal I'artY (Pg,il), Carlos Roberto Reina Idiaquez, Andres Alvarado Puerto, Jorge Russo Arias, Modesto Rodas Alvarado, and Max Velasquez 11 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 Diaz; National Party (PNII), Alejandro Lopoz Cantart-ro, Ricardo'' /.uniga Augustinus, General Oswaldo Lopez Arellano, Armando VvIasquez Cerrato; Popular Progressive Party (1 uninscribed), Gonzalo (':trial Castillo: Orthodox Re- publican Party (I'RO- uninseribed), Roque Jacinto Rivera: National Innovation and Unity Part\ (PIN('- uninscribod Miguel Andonie Fernandez; Conkinunist P:u�t.\� of Ilonclur:tS Soviet (PC'II /S- outla\vcd), Dionisio Ramos Bejarano; Com- munist Party of Ilonduras!C'hina (P('IU('- outhtued Tomas Erazo Pena; Workers' Party of Honduras (P�I'II- illegah, Roque Ochoa Communists: 1011 -SOO: 3,1)(111 sYntpathizers Member of: IADB, 1('A0, ILO, OAS, CAUM. t'.N. ECONOMY (UIOU): GDP: t'SS741 million ('1971 current prices): 5260 1wr capita Food: Self- sufficient in corn, beans, sugar, and (neat; de- pendent upon imports for wheat and dairy products Main industries: Agricultural processing, textiles, clothing'. (rood products Electric power: 1972 installed capacity, 170,0011 ku.: produc- tion, :380 million kw. -hr. Exports: Bananas, coffee, tobacco, frozru nwat, corn. brans. cotton, gold, and Silver Imports: Machinery, equipmew. vehicles, consunwr durables, fuels Monetary conversion rate: 2 lonlpimS t"SS1 Fiscal year: C'alvndar Year 12 COMMUNICATIONS (UIOU): !railroads: 3.5; route miles: 202 rout: miles :0;` gage, 155 route wiles 3 gar "e ::tll siuglr track Highways: 3,500 wiles, 750 bituminous surfaced, I,850 miles gracrl surfaved or iurproved earth, 1100 miles unimproved vart Inland walerways: 750 wiles n:tvigablo bY small craft Porls::3 major (Puerto Cortes, Tela, La Ceiba) and :1 minor Merchant marine: 12 refrigerator ships of 1.000 g.r.t. and over, totaling :515.792 g.r.l, or 53,5111 d.w.1. Civil air: 2.1 major transports Airfields: 120 usable; 4 have runwa'�s �1,000 7,1144 feet long; I have prrm:uuvtt- Surface runW:tys: 1115 airfield sit::, seaplam. stations Telecommunications: Improvod but in:ulrquatf.; cow', retions to international ('eatral American ndvrowace notwork: 15,20 telephones; 300,000 radio and 3:5,(1111) �I'1' recrivrts; 102 A \I, 10 F.M. and i TV stations DEFENSE FORCES (C): Military: 111,1411 Major ground units: I infantr brigade, 9 ,vp:uat� baltali,ms 7 infanta�. I trti. ery, :utd 1 engineer Aircraft: I5, the utajoril.v propeller- driven Supply: For militar\� materiel dependent on foreign sources, rhieC tilt. ('sited States. Domestic production includes feud, clothing, shoes, and a few other quartrrtnaSter itemS APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 ib: Places and features referred to this General Survey (U /OU) 50135 r i APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 COORDINATES (1)(M III N.%TEK o o 1 11 o l l'. Agalt ca 11 21 87 16 1A IIIU it 15 52 45 33 Agua Sala (la I 1 02 S7 12 Los Plane 1.i :37 S6 21 A littlls 15 �Ill 8.1 28 MaOagua, Nicaragua................... 12 09 ,Sli 17 III tpalit 1:3 17 57 -11) Mare ala 1.1 07 SS 00 Bahia tie Tela (bay 15 dS S7 all Monulfta Cerro Amil (ridyc)............ lei 0S AS 53 Baracoa 15 -13 81 52 N1 011tallaR lit' C0l1la Gag Ua (ImatU11Y1r,IR).... 1.1 23 S7 :.Ili Belize City, British flonduras........... 17 30 SS 12 Nacaome 1:3 :31 S? :3C I36falo 15 2:3 SS 00 Nueva Ocotepeyue.................... 1.1 2.1 %it 13 Ce( leno 1:3 08 87 25 Ocotepeque ldepurtntrrltl............... 1.1 :30 Olt Canaveral I.1 57 SS 0:3 Olanchito...................... 15 30 Sti 35 Chamelecon 15 26 SS Of Olancho (department) 1.1 .1.5 Sti it() Choluteca 1 :3 IS 87 12 Pot rerillos....................... 15 11 S7 51% Colnayaqua 1.1 25 87 37 Puerto Barrio. Guatemala............. 15 13 S :311 Comay aqua 15 :38 SS 17 Puerto Castilla....................... 1(i (11 1 0i 01 Comayagiiela 1-1 05 87 13 Puerto Cortf-s.................... I.i IS x7 ;,ti Copan 11 50 Sl) 00 Puerto Lenlpir:l 15 13 1%:3 .17 Cort6s n ^pt :rtmertt 15 :30 SS 00 Rio Agu:in (streupw.................... 15 57 1.5 .1.1 Danli 1.1 00 tiff 35 It iu Chaneleetin stream 15 51 ii -14 El Ant:tti11 1.1 30 SS .IS Rio Choluteca (strram.................. 1:3 07 S7 IN El Jaral 1.1 5.1 SS 0:3 liio Coeo (slreom..................... 15 00 S3 In EI I. lino 1.i 08 S7 51 Rio Goascor:in txtr um) 1:3 25 1, P El Mochito 11 .11) 13 07 Rio Levin (stream)......... 15 47 S7 20 LI Ojo (l(- Agua 1.1 0:3 tiff 5:3 13io Lindo 5 II_I 514 EI Paraiso I' S1 Sti 3.1 Rio Motagua, Guatemala .strta in 15 11 SS 11 El Paraiso department) 1.1 10 Sfi 30 Riu Negro islrr.rnr!.................... 13 02 S7 17 El Progreso 15 21 S7 I1) Itio Pa[uea (.�trralni.. 15 :ill ,1 1; El Salitre it :31 Sll 12 Rio Sulavo (stream..................... 1.1 5S S7 15 E Socorro 1.1 12 S7 ,,0 Rio Chia (stream)..................... 15 -5:3 S7 -it El '1'riunf 1:3 06 S7 00 San Lorenzo........ 15 26 ti 55 E anlomoo 1.1 00 87 02 S:ul Marcos d-- Collin.................. 1:3 26 Sfi to Esteli, Nicaragua 13 0.5 Sli 23 Sae, Miguel. F.L Salvmlor............... 13 29 SS 11 Goaseor :in 13 :36 S7 15 San Pedro Sul:i........................ 15 27 SS 02 Golfo de Fonseca 1:3 10 S7 .10 San Pedro %aeapa..................... 1.1 t2 SS 07 Gracias 1.1 :35 SS 35 San Salvador. 1 ?1 Salvador.............. 1:3 12 Sit 12 Grasias a Dios (department) 15 10 81 20 Sul ,IJ BArbara........................ 11 53 SS 11 Greelaeo 15 (Ifi Sfi 07 Santa Rita........................... 15 1111 S7 5:3 Guanaeastales 15 10 S7 .il Santa Rita........................... 11 13 7 lit Guanaja Ifi 27 85 .i1 Sania Rosa de Cop:in.................. 11 17 Ili Gulf of Ilon(Iuras (yIfli) Ifi 10 87 50 Siguatepe qu('......................... 11 :32 S7 -19 Ilenecan.................... 13 10 S7 �10 Swan Island;, U. (island..)............ 17 25 S:3 5,1 fntibuca (department) l-{ 20 SS 10 I inulr: l.............................. 11 09 S 20 Isla del Tigre (.sload) 13 16 87 :38 �I'egucigalp :l.......................... 11 06 S7 1:3 Isla Meanguera, El Salvador ('island).... 1:3 12 37 �1:3 I'ela ..............I 15 1.1 S7 27 Islas de la Bahia (islands) 16 20 86 30 I' oco a 10 11 Sli 03 Jicaro Gal :in 1:3 31 S7 'IS T rujillo 15 55 sti 00 linlilile It 31 SS 52 Valle departmeno..................... 1:3 30 S7 3.i Jut icalpa 11 42 till I:i Valle del \gu;in (roller 15 2S S :36 La C( 15 �17 86 50 Valle de LeAll I rmlley) 15 It; ti7 1S La Esperanza 1.1 20 SS 10 Valle de Sala (ru lit y)................... i5 27 A7 52 L:I Fragua 15 38 87 �111 Voro of epartrm 15 1.i S7 lei Lag_o de Yojoa (lake) H 50 SS 00 Villa de San Antonio.... It Iti S7 36 La Junta 15 12 37 19 Selected airfields La Libertad 14 1:3 87 :31i La Lima l5 24 87 56 CI toluteca 13 13 s7 11 1.11 Me 15 25 87 5:3 Golosoll Intel natlnll:tl.................. 15 11 Ali 51 L:I Paz deparlrar�I) H 1.i 87 50 La ('eilm Las Casitas 1.1 02 87 16 La Mesa International................. 15 27 S7 .i.i Lax I' apias 1.1 02 87 17 Puerto Lempirn....................... 15 16 S3 1S La Gnilin, 1:1 Salt�ador 1:3 20 S7 51 13 Its fills 1.1 .10 SI 20 Lempira departlnc'rd) 1.1 20 SS 10 Tcla.. 11 1(i S7 211 Lepaterique 1.1 02 87 27 1 l'oneontin International................ 1.1 01 S7 1:3 50135 r i APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200070013 -4 Ls 111i11YSii4M. A-0 r A Ix j' r' �.L�{CN'CA' ipiwi, +::.y': .J y{ :5 r .,i .6�s.r.rir.