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F Ju CONE NO) APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080033 -1 i NAIIQAIAI NOlLLN7tlNC! SURVEY PUBLICATIONS ft bosic volt of the NIS is the General Survey, which is now prb ted in o bAw b tholMer fortnot so VMt topics of greater per. am be updoted an an individuot basis. These chapters� Country Seelve r, �ovetmwit and Politlss, The Economy, Military Geog- rephlr, tronalpatotiat and Telecanmunications, Armed Forces, Science, and M+oMpi+ce and S. -wily, provide the primary NIS coverage. Some chapters, portkWo ly Splemw and bttelligence and Security, that are not pertinent to ad eowttrles, ore produced selectively. For small countries requiring only mile Wol NO treoftwit, the General Survey coverage may be bound into one rolnmel the Gtnerol Survey is the NIS Basic Intelligence Fact WA, o ready reference publication that semiannually updates key sta- Wcol data fowW in the Survey. An unclassified edition of the factbook ao is some detaib on the economy, the defense forces, and the intelligence OW wc+wity orgonitotiota. AMmugh detailed sections on many topics were part of the NIS Program, production of these sections has been phased out. Those pre- viously produced will continue to be available as long as the major portion of the shady Is considered valid. A q.. rterly listing of all active NIS ur its is published in the Inventory of Ave*" NIS Publhations, which is also bound into the concurrent clips Foctboolc. The Inventory lists all NIS units by area name and nE wAw and includes classification and date of issue; it thus facilitates the ordering of HIS un!N os well as their filing, ca;ilc ,:ng, and utilization. Initial dissemination, additional copies of NIS units, or separate chapters of the Gen. -cal Surveys can be obtained directly or through !poison chonmh from the Central Intelligence Agency. The General Survey Is prepared for ;he NIS by the Central Intelligence Agency and the D*fense Intelligence Agency under the general direction of the HIS Committte. It is coordinated, edited, published, and dissemi- noted by #I* Central Intelligence Agency. %%*ANX1Xf: 1e.o 401eews etwgM ;o p.gI offoetstto the notional defense of the United States, wi,hin the W%^q M st 10 t seeoMS M sad M of the Us Bode, as amended. Its transmission or revelation oA J% too" eo sly r@I So Rh so ersolro ohtod poison is prohibited by low. ClA"P1E0 EIT 01%41. EXEMPT FROM GENERAL OECLASSIFI- AtION SC@gJ0UlE OF E. O. 11634 EXEMPTION CATEGORIES D iNCfOR Of CEN1R INTELLIGENCE. APPROVAL OF THE J APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080033 -1 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 availab:e for official pur- poses to foreign nationals and nongover iment personnel provided no attribution is made to National Intelligence or the National Intelligence Surve Subsections and graphics are individually classified according to content. Classification; control designa- tions are: (U /OU) Unclassified /For Official Use Only (C) Confidential (S) Secret APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080033 -1 This chapter was prepared for the NIS by the Central Intelligence Agency. Research was sub- stantially completed by April 1973. APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080033 -1 r 0 Malta CONTENTS This thapter supersedes the ecnnomic Merage in the General Surccy dated A1ay 1.96; which should be destroyed. A. Economic appraisal 1 B. Structure of the economy 2 I. Agriculture and fishing 3 a. Agriculture 3 b. Fishing 4 2. Fuels and power 5 a. Fuels 5 b. Electric power 5 3. Metals and minerals 6 4. Manufacturing and construction 6 a. Manufacturing 6 b. Construction 7 Coxru vrUL No FOREIGN DISSEM APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080033 -1 Page 5. Tourism "r 6. ]domestic trade 7 C. Economic policy and de velngment 8 1. Governmental economic policies 8 a. Fiscal policy and the budget 8 b. Monetary policy and the banking system 9 Page 2. Economic development 16 a. Government plans 10 b. Incentive programs 11 3. Manpower 11 D. International economic relations 12 1. Foreign trade 12 2. Balance of payments 14 3. Foreign aid 14 FIGIZIES ii APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080033 -1 Page Fig. 1 Gross national product and gross 7 Budget revenues and expenditures fixed investment chart) 1 Fig. 2 Land use map) 3 Fig. 3 Agricultural commodities 'table) 3 Fig. 4 Cropland (chart) 4 Fig. 5 Survey of manufacturing table) 7 Fig. 6 Domestic trade table) 8 ii APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080033 -1 Page Fig. 7 Budget revenues and expenditures (chart) 9 Fig. 8 Labor force table) 11 Fig. 9 Foreign trade (chart) 12 Fig. 10 Imports table) '2 Fig. 11 Exports table) 13 Fig. 12 Direction of foreign trade (char.) 13 Fig. 13 Balance of payments table) 14 ii APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080033 -1 0 A. Economic ICI %I111111f0 161 Iltr 1lt plll +llfallt 4 4 .Il"I 'it" 111 II es� 11110-1 11104111 1`1141 l ill fr.1101ta1 h''- 1wlh,^ i.1il.1 Ira� lalrla/1wl its i�1at141 1.�1:1114611 ill 11 NI"lil1.traltrall .11"1 it+ +1t,1ia1 h lat14 prlrill 11111 IIN� l nilrtl Kitlttll,pft iftl .1 r.111i1111 1.i -iutt 11. +r1 ,.1 litileC Ill VI 1- %Ialla tow-. 11.1Ii,p1.11 1x'41114.1 1:%1' a11V011h1r11 to 12.40 111illi,61r ill 1 .11hIll 111.111-11 1x1!1�.. ties 111�t laltil.l (AI' 11f Svill 'A.1+ aI1IF+t 11 111.11 111 .11 3111 lillw Iltal 1.111.1 111,',1114` 11141 lMtiNb'tlt Ifloill Iititi +ll 11111� ill I'Mi1 -11C4h I %Ilhna;11 I01es Ifa1.r IIN� 1,.r11th +aililltt 111 IIN� dlhrinitt�!1 N1�I. INt 1.1111:1 5:*%1 0 IliCIN't 111.114 111 I'ntltlit.11 lac 1-1-!+,�11+ 111.11 ill '11116% .11141 It- litilll. 1:.1411111 111.111!1104 t� !�:rnupni!� nlwlh an 1111/1 .111. �r i1es1/104'fNl1tN awracillc it 1'. .1100111.1111 its fral x-�1111+ in 1 11111�%lltes�III ill f :Mlllll.11lrltitlL' .11141 I�1111�tle 1/N 1/i11. 71 tier 111.1ill Itt11N�111+ Igo drr,rllllx111 �tll 4106� Cln rftlles �111,a1ra111.11 IIw trioulie nl i1N11r -111 IIIt1IrlCh 11"11011 1 HI!'ll .1� 1.1 wlui��ilgt� .11"1 1,16111. Ilrnifla"I 10-1 1 I:d 1..1f 111.111� .11111 161 111 1-0111.111 14.."611 .Id/ -11111 in :1,ntbwn 1:11hgw� 1111. tt" n�a ��d atlil iI. in 111aft111.11�1ofi11C ,11 "1 In11rolle. .11 -lilt aitle .1 �11.111 inllmm 141 Iirili -le ht 111$- 111..1.1111 !�1i111.111.. Ines 1.11e, 11141 a 1-114 1 +-1 �11 Ilt �1utl1wl 1,n +tr11!�tinn 10411-111 111.11 ImIIN�r I �t..l rtn111.1111N�a1 MA inl.nnl�. E%t v -111 Inc 111111-11 .d 1-..111111. rl.l_. Al %I all�.. 1��.+.t 1.t +1.r. 16hn1[11 1111. 11141'1.1 (M-1.1..n1. 1.�1 11 4114� ,1.l %11.1 vole; 11w f.11. r +11141.1 -1 -1 111 11.-r1..1r1 VC tlw 1). I-rtan II, -M ang sh 1,.1. Ile.* *veto slow -.r. Irrtin>;161rettutl.+t 6 wrrn flu! .,1 d1.11ert 1-111 111 1.10" w 1.r( L11fa� 11LIPol i� Abort p t Irvat. Irlw114r1 1 b-i p+,�fj.l 1...n�. L%11-4 1: 1 n.m 1447 1611 �t6 W'1 I lw 1 .1. ,r( ��16.111tr %l1. 141 11"Iff+mal 1.11.11111,1 Mall., In I.y.lna i1+ 1.Al"If1+ 1.1411 +i11!`f.11If Isarli1.111.rr11 �.111'� Vol ft1.11r1d.1l- Iatt'sI 0 -111� 1.11 1.Al041ft !llfirlr .N,t01lflh�41 lost I V, Vol IAP ill Resit .1111 +111111!,1 In .1104,111 11', nl IA1' In If1'1 11001M Ar�t �inl, 1l,lesnrni1. Qf,1llll 11.1+ llrlN twl+wl Ise.101t rill itfllu11t141 !�.1110.11 8104,11� and f1 -itrq ies ti11�01w 11.1.. itw- 11..1.111 1111� 411.111.11111 111r Inter We N cC us VOssian fewrem F4e11 G.ofs Fired Its 110 10 car GNP w. GNP w owpi NO Cowdeve of-le 040 MN Ib K M N 70 71 FIGM 1. Orr nc 11 product o d Spots fixed Y11rss11m 1964 71 lu;'CUl APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080033 -1 con >.utuer goods that are not produced locally. Malta's trade account remains in ehrnic deficit; the deficit was $121 million in 1971. The United Kingdom has played a dominant and pervasive role in Malta's ecouonic life. ;111hougll Malta was given independence in 196.1, the United Kingdom signed aid and defense agreements and continued to maintain it sizahle presence on the island through the stationing of military troops and their dependents. LI.K. econrnnicaid substantially financed the Maltese Government's investment expenditures and provided foreign exchange to support Malta's hign level of import.,. British military expendit :;c�. accounted for 9S' of CNN in 196.1 -69, and expenditures of dependents bolstered domestic trade and services. Furthermore, for several years British companies operated the drydocks, and Barclays Bank was the bank of the Maltese Government, which even today turns to British experts for counseling. British influence is still apparent in tlc British -run airport and in Malta Airlines, run by British European Airlines. In the business community, English is spoken as often as, if not more frequently than, Maltese, and retail stores in downtown Valletta arc branches of London companies. In 1969, the special relationshili between the United Kingdom and Malta began to deteriorate. The U.K. Government hisisted that the terms of the aid extended to Malta be changed, claiming that Malta's economic prosperity justified more stringent terms. The Maltese Government refused to accept aid under those conditions. The United Kingdom yielded in late 1970, in anticipation of the Maltese elections and the possibility of it Maltese Labor Party (M LP) victory. British economic aid at the old terms flowed into Malta to bolster the chances of the incumbent Nationalist government. The M I.P, however, was victorious, anc' Don; Mintoff, the new Prime Minister, quickly abrogated the defense and aid agreements and demanded rental payments for the British bases on the island. The controversy, which lasted 9 months, resulted in the evacuation A British dependents and most of the troops. Ultimately, Mintoff successfully negotiated an agreement for cash payments from the United Kingdom and its NATO allies, but the break had a pronounced negative effect on the economy that ultimately affected not only Maltese Government operations but tourism and trade as well. In 1971 the growth rate cif the Maltese economy fell to 2.3% (the rate was 11.9% in 1970), and fixed investment actually declined. The unemployment rate rose from 4.7% at the end of 1970 to 7.4% by the end of 1971. The controversy with the United Kingdom 2 was ille major element ill file slup. hill Ihem wrr of her problems as well. 'i'he MIT gm erunienl canceled government proiects planned by the Nationalists, frightened preospectki investors with price and profit controls, and canceled the imeslnenl incentive program. Tourism, which depends prinaril} coo British visitors, fell off' sharpl\. Imports and domestic conunerc�e were adversely affected by rising levels of uuernploynent and the deparlum of British dependents. The foreign trade deficit fell for the first lino� in years, and many snall store (inners experienced financial losses. The construction sector. affected by the falling demand in other sectors. was marked by considerable unemployment. The controversy with the United Kingdom was settled in March 1972, and \Malta was guaranteed substantial annual aid p:!yntents tit finance ecouonic development for 7 years. The 1 Minister stated that these fonds, along with othe aid already agreed to, would be used to develop the econony so that i, would no longer be dependent on ni',itary bases after the 7 -year period of the� agreement. In the 9 months following the agreement, however, litty- was clone to increase the level of economic activity. The ernncut has operated under it dcflationary btdget. with un absolute decrease in capital spending. Unemployment, however, has been reduced by recruiting idle workers into an emergency labor corps for public works projects. Prospects for renewed rapid growth depend heavily of the use eventually made of foreign aid inflows to stimulate investment and employment. k ne\y 7 -year development plan is scheduled to he released in 1973, at which time the government's policies for achieving the airs of economic: independence are to he revealed. Prelirninary indications are that the role of the government in economic ;clivities will increase significantly. B. Structure of the economy In some respects, Malta's economy differs markedly from those of other countries at a generally similar level of development. Agriculture is relatively much less important, and services are much more important than in Greece or Portugal, for example. The unusual prominence of scrviecs stems from the traditional use of the public payroll to absorb some of the unemployed, as well as front activities directly and indirectly related to the British military presence. Public administration and military services in Malta together employ one quarter of the labor force and produce some 30% of the gross domestic product APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080033 -1 r: (f 11)1'). vomllmu -11 1111 11�.. 111 4111 111 ill 1: 111 .11 o ff I'oti llit:ll. t' ()t 1)rlriug IM IA TI i 11N�'hatr of pullic a d "l i11i�lrllilal Mid milila .1 nicr. ill Ille (;I)ll "�111411114.11 In �atli vowl,1111. 11111 life .114111�. of li�tlahl olln�t .l�111r1r rha figed 09111fic41nf1%, 40% 411111111 in lIW flrlllrailnl Iallnllatilm (in ltrtcrnt of CI)1'I: 19" fro i A.ttitollittr. (on�.Ite-. (tsllina :.A IMPORTS Minim, atuatt)itl)t, a1N1 rmanlatiam Wheat 1.700 Ntanufattllring i ti.1/ /.1 Electric 114mer. U walct 21.1011 Public and mililatp U 20.700 11 Potatoes. 32.200 1'hola�. ;da� 11111 14.1:411 trade� .l IA. 'I'r.amp tot and tonnlill"k lull. 4.; 3. Ila.Ikilaat. 111MI nN,�. ;uad rill 1.700 to Other acr %i4 a�. 0114:111(ina 11WIN -Wap Other vegetables...... 26,400 of dwellings) 100 II A Llanufaclllring. g etirralh n�eogni/rd as the key 111 file dt-velopillelit of Malta's l�com)Inv. inc�n� :1410 in relative inlltortanev. New mau1161clorhip 11:11111. nutny of them situated in industrial JUAN oillside Valletta. and new tourist facilities Provided the stimulus for most of the rise in the shades of (.I)I' shown tender mining, quarrying, and construction and under banking, insuratice. and real v%late. (1 1. Agriculture and fishing (U /OU) a. Agriculture Malta produces only one -fifth of the food required by its densely populated urban areas. Less than half the land area is classified as agricultural, and the available cropland area (Figure 2) is wholly CunnralW a.1-� iq.�n 0�a0es. rr .gM.Ws, nu-A uv area C"h land sport grounds. aaeda Yls.relanC .r r Go,o o Kemmuna Matta G `1 1-1,1 Hotta fi4e 501771 573 FIGURE 2. Land use (U /OU) lllalllml foil IV- ifIHM nlinit tly dlllruf 10111.4%v Ilrt�iah� (lair- 1.111111111 all�te) I+" inhallilanl. \11"notrt. �1 4 1111111 ardle atltt! a do lluir Ihal 1. i11�.1a I## alt" 4111111n� %Metr 1111111 ImsdI1114i iv A %hlr sartk4% I rf t"f1r1N, i1N�hh fi'r ft 411.. h Kh1gn. 11111 141111 11101 111N". 411141 lalilal% ate IMIIIItin"I In 111 {411rH1i'+. 1 11.1 1oml e lot nln Ilrnllr.lh� tMnlattul &IMI 10tonkir %iralllle %eogoIow 111r rilertt 4 11111111411 pith' Ithrl 1111111 11follw%lit Ittilltr. i. 1wo r 1 01hrtll�rl Higi �1 1 1i1m�llu ltna11ll�lh 11110f4it� life dothm aaltlarl al"I Ill.�% rrrtlllfall� lonl ollse x111 im..11rttaltll "ruffle off r r afflinliy. %eilfl% all of life IN�"fell gt411111. I1HINr11rt. 1111M I re in1111tltll. A 11111n1011 %etrialIr� Mill Itllil. 4ltr ltnrlllit."I. inilllotl. 41010011 all'i of life 4reen vl�grlalrh�.. h3ti of 16 cdlm.. 11111 411 ld life 111111.1 Ituih tlau11nlyd. 111 414h lilioll, IAt4r 411111111111-t of lural 411111 d41irr 11folI1N`11% Me i nlliofttrl to 4111j;l1rillei 1111 -jel pr dlitlion. Almost .15"i of 111 4lgficult11tall erral 1. 1441111111 ill grain. Mind fodder cm;?% l F lean� -1). The 11111% 4 r41111% of irnlorhulce an- wh ei lt and 11:111.11 ghlNll primaril> loot 11.1� as feed for 1111 ^H�rc k. The ptincilkil Ioddrr chat% includr su!la. gr1.1.11 Itatley. vrtc�h. alfalla. r1licklx�a.. hhrad 111�ans. and 1111.114 loeilm. S1111a. a l irldigrnons 141 Ihr Mellilrrranr :m 41ra. i� grown rNirl�ivel the acrrag1- 11.1,1 (ot .1111 :1 i� aillr11t the s4111le as 111.11 for corral groins. 11�aler tril11irrnrrnl. for sadlu an- low. :1ntl it% rst1-n.ivr nN1 .a1�tn hells to prevent crosion. The stain veget.11114. c�nl" an� iootalw%. 4111ion.. 411141 tomataN�s. Potato yields are generdl% I1�lovl those of other Vledit1-rrancan counlrir. IN�c:ulN� of I "1- d o climate, soil d1-fici nc�ir,. and inadcquale 1tM� of fertilizer. Potatoes ree1-rt111-h�ss. have I1.1�u f :lltu's Most important ag riculhlra) eslort for mane rein. Onions are also an important ex111rrt crop. Sind� 1960. FIGURE 3. Selected agricultural commodities: production, imports, and exports, 1969 (U /OU) (Metric tons) 3 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080033 -1 PROMIClION IMPORTS F.\huNTs Wheat 1.700 *57.300 Barley 1.700 21.1011 Corn U 20.700 11 Potatoes. 32.200 :1.400 1:3.900 Tomatoes............ 0,1100 0 Onior................. 1.700 0 2.1110 Other vegetables...... 26,400 11,300 Grapes 4.300 0 +100.01N1 hl. of wine! Citrus 600 �1.000 0 Other fruits........... 3,300 7,900 0 *Wheat and wheat flour in wheat equivalent. "Less than 100 tons. 3 APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200080033 -1 TOTAL O Gros I 411111.1.. I Grrllor 1M1/ btNr trop FILM 4. Wolblrtion *1 crw okwocl, 1969 (U OU the i+ruitr 11hIllk�li1ll off 11101010 II:0 IO r li 110 1 61 1 111.111 in live HtL10%. '111ritr aild 4#1111110 %:t% sill�h It"111 %rat H/ %rat. In 1114. 1161.1 timadr. Ihrtr Ili 111.1�11 little rhallar in artratr .Ind tllltpovt of Nrhl gnIn lo"nalo", shids arr �hl nminh I4# atsiortic t lilt %wMl%rnholl itQos Iu.1.4r lost ihslnr sir 011.11n11Ii1n Un 11trtllk iotil ill Illm aflrr� 1111f'rrl- w I% 11r;11R %116 liAml h+ llw� q/nrnntorto1..41141 1.111.1 h.4- allem111rtl fir rylat"I 111r1111k'ti1N1 411"1 IM4e11 an r %tu ttkltkrt fist tllnl.11t" live 10tith i1R11 Inlil l�nq. :ltr 11141111111-11 list ntakinit foo tk�.. r%1Ntt� of sldull :err %ignifiraill. (11114.0 I ndI% arr tr imn. Not Ills� artragr 4l1�+1 11 I IN �nl ho-. dMined cvulinlNnt�l% .iiKr IlLi:i %ally 4hom foo lowsloorr m11911th li +r.11K�k :11 Il.tln 11r114111e1. t1 .111101% it- 111911 /1��110 tyrh.11t111111o1i tre ltdrritw ool�. t-.on-* rtal/lr :InN011 111� of /IN al .ultl SN9e of Ivor milk t.m.11noml a il� i111110stleil %lilmoIK11 tlw :1%1 41111111.11 rile of gnrslh 1 11 flor /911111111 Ili rh./vtt�tl little ill file JM IIIYaIr. Illrr .1.1r1��n :1 �Ivill in floe t� 111n1N 1004111 411.1111111.111//ldint�..n i11411t :I411 in lilt- follosing I:1Fulitiln vin 111411MA1141 lormll. Milk oullim Ili, hirtra%ml mootMMIIal. itltl dwn� h ptiruler vrw� of tim m ilk. a4#, 1gtloor,"I to Jim: elf .f is"s avid Ptuhn 41141 Ili% fum illy. tin� live newt i- ilNlrtaot livmlf 4-k indu%trir. in Inns� 401 r%1N1rt 1N11rtrlial. Poulin ha. %f141wn +114.11 rillitl gn0;1I11 that -1 %L11111 stilt 10111% ha. IN"11111 r �II �nllirirtll in 110rt1 tine ;Il. at11 rgq� 10111 fa v% Ihr 1r ill di.fN.itlk of �I11111im 1gri. I111nral fhNlur�li%it% in %1:11141 grnrr :111 i. lo%. The tit% rlilolair. iln� hillill�II %trill of ittigak.40V IN000r �dl�- 411141 IIN� lya41.1fu:llr n .4-r (rtiilirrr. +Intl 111�.141 i4e�. its- 4 f:t�!ol%. %loon� it11110tlailt. I11sr%11. sin� the .111.111 air:� Vol agriraltund holding% :11111 1111� I4- :Igttu�nlaliol of 1r1o1. Llrlitr. %%hit It Iitull�r 1114� liw ill 111.11 Nnr1% Mill make (.111 i%alion lalrrrion. :rtld little +.rn�nulinq. In P0101. felt r%amfle. 1111 a%rtags- 11it14itlit %%a. 11n41�t 1 arh'..uld �1111� wet of 111 Ilitlditlq. Urn� ltndet arn�.. 1111� 1 +91:11 artragr dr%olyd to voi,jr. 111�c�rl�awd �Ira4ih 1 1111 -11.114111 :1rn�. in 1914 (o :IINut 15.I14141 artr� in INi!1 '1141. 41 %11.41� In at n :Iqr Irl:Ullru in s la�at :silt! h 101� ha. IN 1 li 41110.1 not:l(rlt Iru1 rgrtalrh� :u ;ll l :slit arn�agr ha� aho ti1�t�lim.d. 'flu� 11111% 4�hy1