In 1939 there were 3,180 miles of roads and highways and 762 miles of steam railways in the country.

Gold and foreign exchange holdings have risen from $6,000,000 in 1941 to $13,000,000 at the end of 1943. The 1943 national budget was balanced with a substantial surplus.

Instrumentalities for development.

The Republic has selected three governmental committees which are charged with the responsibility of increasing production, raising the level of consumption, and improving distribution. The Inter-American Development Commission of the Dominican Republic, representing private interests, is actively cooperating in this program.

Program for economic development.

The keynote of the Government's economic program is the broadening of the economic base, striving to reduce the dependence upon sugar by encouraging the growth of diversified crops. Agricultural experimental stations are being established, and the Government has undertaken a training program for specific industrial improvement. Increased transportation facilities have been recognized as one of the principal needs of the Republic, and plans are being made to correct this inadequacy.

It has been estimated that the possible development of new plant facilities in the Dominican Republic will require machinery and equipment from the United States valued at $30,000,000, and that the replacement of depreciated and obsolete equipment will likely require an additional $20,000,000. A segregation of these two categories into used and new equipment is shown below.

The total estimated value of equipment likely to be required from the United States is shown by types in the following table:

Dominican Republic: Estimated value of equipment and material from the United States in the first 10-year post-war period

Ecuador, with an area of 125,000 square miles, has a population of 3,200,000 and a per capita income of $34. The Republic is essentially agricultural; the three principal export crops are cacao, rice, and coffee. The mineral resources of the country include gold, petroleum, copper, lead, sulfur, and salt. Lacking coal and iron, no heavy industry has developed. Manufacturing is on a small scale and confined to the production of consumer goods, notably textiles. All machinery

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and equipment utilized by local factories has been obtained from abroad. In 1940 there were 21 textile mills with a capital of 14,000,000 sucres and employing 3,500 workers. The potentials of hydroelectric power are large, but have not been utilized except in a very limited degree. The capital invested in enterprises other than land is largely foreign and is estimated to amount to about $32,000,000. One of the principal problems in the economic development of the country is the obtaining of more improved transportation facilities. In 1940 there were 693 miles of track; highways totaled 3,300 miles, but of these only 450 were hardsurfaced. Of 5,898 registered motorcars in Ecuador, 12 percent were not in operation because of shortages of repair parts and tires. There are 2 air lines operating in Ecuador, flying 9,000 miles weekly over 1,235 unduplicated routemiles. The output of textiles, hats, shoes, cement, flour, and other consumer goods has increased since the outbreak of war, but extensive industrial development has been impeded by the lack of needed machinery and supplies. The excess of exports over imports created gold and foreign exchange holdings of $19,000,000 as of December 31, 1943.

Instrumentalities for development.

In June 1942 the Ecuadoran Development Corporation was established, consisting of three representatives of the Government of Ecuador and three representatives who may be foreigners. The original capital of the corporation was $10,000,000, of which 50 percent consisted of a credit extended by the ExportImport Bank of Washington. In October 1943 an economic council was created, -composed of 9 members: The Minister of Finance, a Senator, a Deputy, a representative of the Central Bank, a representative of the National Bank for Provincial Development, the Superintendent of Banks, an economist, a representative of agriculture, and a representative of industry. In December, the National Provincial Bank of Development, with an authorized capital of $100,000,000, was formed. The purpose of these institutions is to study and. take action toward furthering the economic development of Ecuador, with direction and control centering in the Government.

Program for economic development.

Current projects include the construction of highways, the development of agriculture through experimental stations, the production of new and varied crops, the financing of hydroelectric projects, and the promotion of new industries. In these post-war plans active aid is being given by members of the Inter-American Development Commission of Ecuador who forecast enlarged demands for such United States products as tractors, bulldozers, graders, trucks, bridges, and hydroelectric installations.

It has been estimated that the possible development of new plant facilities in Ecuador will require machinery and equipment from the United States valued at $62,000,000, and that the replacement of depreciated and obsolete equipment will likely require an additional 42 million. A segregation of these two categories into used and new equipment is shown below.

The total estimated value of equipment likely to be required from the United States is shown by types in the following table:

Ecuador: Estimated value of equipment and material from the United States in the first 10-year post-war period

El Salvador, smallest Central American country, has an area of 13,176 square miles and a population of 1,880,000. Agriculture, chiefly coffee growing, is the predominant industry, and stock raising is an important activity. Minerals exist in small quantities but are undeveloped. Manufacturing is associated with the processing of agricultural products and with some production for the domestic market. Exports usually exceed imports. The national income for 1943 was estimated to be $103,000,000, or a per capita income of $55.

More than 836,000 tons of shipping passed through the seaports in 1940. Railway mileage totaled 285 in that year. More than one-half of the 3,690 miles of highways in 1941 were improved. Vehicle registration in 1943 included 2,700 passenger cars, 698 trucks, and 676 busses; 80 percent of each group were believed to be in service. In 1943 there were international, but not domestic, air-line services; 1 of the airports was of class III or larger, and 7 were class II or smaller.

Government revenues in 1943 exceeded expenditures by $1,100,000. United States investments in 1942 amounted to 18 million and those of the United Kingdom to $9,000,000. United States holdings of Salvadoran dollar bonds in 1940 were estimated to be 4.1 million, all in default. The country's public debt in 1943 totaled 51,300,000 million colones (1 colone=40 cents). Holdings of gold and foreign exchange in that year were estimated at $21,000,000.

Instrumentalities for development.

The Central Reserve Bank and the Mortgage Bank of El Salvador are the leading instrumentalities that may assist in financing imports of equipment. Program for economic development.

Post-war development is a subject of careful consideration by two groups in El Salvador, the Comision de Fomento Interamericana and the Committee of Economic Coordination.

It has been estimated that the possible development of new plant facilities in El Salvador will require machinery and equipment from the United States valued at $28,000,000, and that the replacement of depreciated and obsolete equipment will like require an additional 20 million. A segregation of these two categories into used and new equipment is shown below.

The total estimated value of equipment likely to be required from the United States is shown by types in the following table:

El Salvador: Estimated values of equipment and material from the United States in the first 10-year post-war period

Guatamala, with an area of 42,364 square miles, had a population in 1943 of 3,450,732, and a per capita income of $87. The economy of the country is agricultural, with 90 percent of the population engaged in this industry. Corn and beans are the staple products of the country and occupy about 70 percent of the cultivated area. Coffee and bananas are the two leading exports. Chicle and wild rubber are the major forest products and are also important exports. Manufactures represent 80 percent of total imports; wheat products and petroleum constitute most of the remainder. The gold and foreign exchange holdings of the country on December 31, 1943, were estimated at $20,000,000. Foreign investments in Guatemala at the end of 1940 were estimated at $109,000,000, most of which were in banana and coffee plantations.

The country has a relatively small external debt.

In 1942 there were 3,882 miles of highways, of which 2,199 miles had improved surface. Railroads carried about 3,000,000 passengers during 1943 over 637 miles of track. As of December 31, 1943, 4,296 passenger cars, trucks, and busses were registered and in operation.

Stocks of imported merchandise are very low, particularly those of durable consumer goods which have been virtually unobtainable.

Instrumentalities for development.

The Inter-American Development Commission is cooperating with the Government on post-war economic planning.

Program for economic development.

The Government of Guatamala has instituted measures to increase the efficiency and productivity of labor by introducing courses in mechanics and allied subjects in the secondary schools. It has also subscribed to the inter-American technological in-training program for instruction in more efficient methods of production. The Government is encouraging the diversification of agriculture. The extension of credit is one of the principal means of assistance. Free cotton seed has been distributed by textile mills to foster the planting of this commodity. Efforts are also being made to increase and expand the cultivation of medicinal plants. In addition, plans have been advanced for the installation of tire recapping facilities.

It has been estimated that the possible development of new plant facilities in Guatemala will require machinery and equipment from the United States valued at $52,000,000, and that the replacement of depreciated and obsolete equipment will likely require an adidtional $35,000,000. A segregation of these two categories into used and new equipment shown below.

The total estimated value of equipment likely to be required from the United States is shown by types in the following table:

Guatemala: Estimated value of equipment and material from the United States in the first 10-year post-war period

The Republic of Haiti, with an area of 10,700 square miles, occupies the western two-thirds of the island of Santo Domingo; it has a population of 2,719,474, of which 95 percent are Negroes. The national income amounts to about $60,000,000, or $22 per capita.

The economy of the country is agricultural, the principal crops being coffee, cotton, sisal, cacao, and sugar. The mineral resources are believed to be extensive, but there is no important mining production. Haiti's manufacturing industry is small. A modern sugar mill in Port-au-Prince is processing about 40,000 metric tons annually, and the only other manufacturing plants are small in size. They produce shoes, soap, tobacco products, beverages, straw and fiber articles, and clothing. Highway facilities are fairly adequate; in 1942 there were 1,830 miles passable for motor vehicles. The railroads of Haiti do not play an important role, their total trackage amounting to 184 miles. The rivers are not suitable for commercial navigation.

The current budget of the Republic is balanced, with revenues in excess of expenditures. Gold and foreign exchange holdings for the Banque Nationale amounted to $6,400,000 in January 1944.

Instrumentalities for development.

The most important development organization is the Societe Haitiano-Americane de Developpement Agricole, commonly called SHADA. The corporation was organized in August 1941 with all of the stock owned by the Haitian Government. The Export-Import Bank has assisted SHADA by means of a substantial line of credit and the United States Government has contributed the services of technicians.

Program for economic development.

The Haitian Government favors the establishment or expansion of secondary industries based on the process of locally produced articles. The President has repeatedly stated that no large-scale industrial program is justified but that small industries should be expanded. SHADA has as its objective "the development and exploitation of all agricultural and other resources of and within the Republic." Experimentation has been undertaken to improve existing crops and cultivate new ones. Methods for processing agricultural crops and handi