of raw materials and
manufacturing equipment and by insufficient number of experienced
workers and managers.

14. AGRICULTURE: About 63 percent of land is agricultural; of this, 65
percent under cultivation. Food production adequate for domestic needs,
but exports limited because of insufficient investment and lack of labor
incentives.

15. INDUSTRY: Rapid growth since 1950 stimulated by massive inputs of
capital, labor, and imports of modern machinery and technology. Labor
productivity and quality of manufactured products have improved but
remain low.

16. FOREIGN ECONOMIC RELATIONS: Foreign trade is state monopoly and is
conducted primarily with Soviet Union and East European communist
countries. Balance of trade generally negative, reflecting imports of
high-quality machinery from West necessary for industrial advancement.
Exports limited to light machinery, foodstuffs, and some consumer goods.

17. FINANCE: Monetary unit is the nonconvertible leu. The to tourist
rates of about 16 lei per US$1. Currency and foreign exchange are state
controlled, administered through the National Bank.

18. COMMUNICATIONS: All information media party or state owned and
controlled. Press and radio more extensively developed than television,
but all function as parts of ideological and political indoctrination
system.

19. RAILROADS: Important freight and passenger carrier. About 6,900
miles of trunkline in operation, almost all standard gauge. About 100
miles electrified, and rest of system converting to use of diesel
locomotives.

20. HIGHWAYS: Of 47,800 total road mileage, about 6,600 miles nationally
maintained as principal operating network. System supplanting railroads
as major short-haul carrier of freight and passengers.

21. INLAND WATERWAYS: About 1,500 miles of principal rivers and canals
are navigable. Water transport has minor role as a cargo carrier.

22. AIRWAYS: Romanian Air Transport, the state-owned airline, operates
domestic service to twelve principal cities and to about twenty national
capitals in Europe and the Middle East.

23. PIPELINES: Largest network serves oilfields and moves most liquid
petroleum and refined products to refineries and ports. Natural gas
lines exist, but mountainous terrain limits general distribution.

24. MERCHANT MARINE: Small in number but operates modern ships and
equipment. Transport limited principally to truck cargo and freight.

25. ARMED FORCES: In 1972 consisted of a