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Chad
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Question: Chad
Category: Country Facts
Date Added: June 16th Saturday, 2007
Answer:

Chad
 
Bureau of African Affairs                                                     
June 2007                                                                     
                                                                       
  Background Note: Chad                                                       
                                                    
  Women wearing traditionally patterned                                       
  dresses walk with their goods to sell                                       
  in N'djamena, Chad, February 22,                                            
  2006. [© AP Images]                                                         
                                                                       
  flag of Chad: three equal vertical bands of blue, yellow, and red, with blue
  on the hoist side.                                                          
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Republic of Chad                                                            
                                                                       
  Geography                                                                   
  Area: 1,284,634 sq. km. (496,000 sq. mi.); about twice the size of Texas.   
  Cities: Capital--N'Djamena (pop. 1 million est.). Other major               
  cities--Moundou, Abeche, Sarh.                                              
  Terrain: Desert, mountainous north, large arid central plain, fertile       
  lowlands in extreme southern regions.                                       
  Climate: Northern desert--very dry throughout the year; central plain--hot  
  and dry, with brief rainy season mid-June to mid-September; southern        
  lowlands--warm and more humid with seasonal rains from late May to early    
  October.                                                                    
                                                                       
  People                                                                      
  Nationality: Noun and adjective--Chadian(s).                                
  Population (July 2007 est.): 9,885,661.                                     
  Annual growth rate (2007 est.): 2.32%.                                      
  Density: 6.6 per sq. km. (17 per sq. mi.).                                  
  Ethnic groups: 200 distinct groups. In the north and center, Gorane (Toubou,
  Daza, Kreda), Zaghawa, Kanembou, Ouaddai, Arabs, Baguirmi, Hadjerai, Fulbe, 
  Kotoko, Hausa, Boulala, and Maba, most of whom are Muslim. In the south, Sara
  (Ngambaye, Mbaye, Goulaye), Moudang, Moussei, Massa, most of whom are       
  Christian or animist. About 1,000 French citizens live in Chad.             
  Religions: Muslim 51%, Christian 35%, animist 7%, other indigenous beliefs  
  7%.                                                                         
  Languages: French and Arabic (official); Sara (in the south), more than 120 
  indigenous Chadian languages and dialects.                                  
  Education: Years compulsory--6. Attendance--primary school 68% (1998);      
  secondary school 5.5% (1995); higher education n/a. Literacy (2003 est.)    
  --48%.                                                                      
  Health: Life expectancy (2007 est.)--47.2 yrs. Infant mortality rate (2007  
  est.)--10.2%.                                                               
  Work force (approximately 48% of population): Agriculture--more than 80%;   
  largely subsistence agriculture.                                            
                                                                       
  Government                                                                  
  Type: Republic.                                                             
  Independence: August 11, 1960 (from France).                                
  Branches: Executive--president (head of state), prime minister, Council of  
  Ministers. Legislative--National Assembly (unicameral). Judicial--Supreme   
  Court; Court of Appeals; criminal courts; magistrate courts president (head 
  of state, president of the council of ministers), council of ministers.     
  Major political parties: About 60, of which Patriotic Salvation Movement    
  (MPS) is dominant. Other major parties include the Federation Action for the
  Republic (FAR); Party for Liberty and Development (PLD); Rally for          
  Development and Progress (RNDP); Union for Democracy and the Republic (UDR);
  National Union for Development and Renewal (UNDR); Rally for Democracy and  
  Progress (RDP); Viva Rally for Development and Progress, or Viva RNDP.      
  Suffrage: Universal over 18.                                                
  Administrative subdivisions: 18 regions.                                    
                                                                       
  Economy                                                                     
  GDP (2006 est.): $5.255 billion.                                            
  Natural resources: Petroleum, natron (sodium carbonate), kaolin, gold,      
  bauxite, tin, tungsten, titanium, iron ore.                                 
  Agriculture (2006 est., 32.5% of GDP): Products--cotton, gum arabic,        
  livestock, fish, peanuts, millet, sorghum, rice, sweet potatoes, cassava,   
  dates, manioc. Arable land--30%.                                            
  Industry (2006 est., 26.6% of GDP): Types--meat-packing, beer brewing, soap,
  cigarettes, construction materials, natron mining, soft-drink bottling.     
  Services (2006 est.): 40.8% of GDP.                                         
  Trade: Exports--$4.342 billion (f.o.b., 2006 est.): oil, cotton, livestock, 
  gum arabic. Major markets (1999)--Portugal, Germany, Thailand, Costa Rica,  
  South Africa, France, Nigeria, Cameroon. Imports--$823.1 million (f.o.b.,   
  2006 est.): petroleum products, machinery and transportation equipment,     
  foodstuffs, industrial goods, textiles. Major suppliers (2004)--U.S., France,
  Cameroon, Nigeria.                                                          
  Central government budget (2006 est.): Revenues--$617.3 million. Expenditures
  --$877.6 million.                                                           
  Defense (2002): $31 million.                                                
  National holiday: Independence Day, August 11.                              
  Fiscal year: Calendar year.                                                 
  U.S. aid received (2001): Economic, food relief--$238 million from all      
  sources, (including $30 million committed by African Development Bank.      
                                                                       
  GEOGRAPHY                                                                   
  Chad is a landlocked country in north central Africa measuring 1,284,000    
  square kilometers (496,000 sq. mi.), roughly three times the size of        
  California. Most of its ethnically and linguistically diverse population    
  lives in the south, with densities ranging from 54 persons per square       
  kilometers in the Logone River basin to 0.1 persons in the northern B.E.T.  
  desert region, which is larger than France. The capital city of N'Djaména,  
  situated at the confluence of the Chari and Logone Rivers, is cosmopolitan in
  nature, with a current population nearing one million people.               
                                                                       
  Chad has four bioclimatic zones. The northernmost Saharan zone averages less
  than 200 mm (8") of rainfall annually. The sparse human population is largely
  nomadic, with some livestock, mostly small ruminants and camels. The central
  Sahelian zone receives between 200 and 600 mm (24") rainfall and has        
  vegetation ranging from grass/shrub steppe to thorny, open savanna. The     
  southern zone, often referred to as the Sudanian zone, receives between 600 
  and 1,000 mm (39"), with woodland savanna and deciduous forests for         
  vegetation. Rainfall in the Guinea zone, located in Chad's southwestern tip,
  ranges between 1,000 and 1,200 mm (47").                                    
                                                                       
  The country's topography is generally flat, with the elevation gradually    
  rising as one moves north and east away from Lake Chad. The highest point in
  Chad is Emi Koussi, a mountain that rises 3,100 meters (10,200 ft.) in the  
  northern Tibesti Mountains. The Ennedi Plateau and the Ouaddaï highlands in 
  the east complete the image of a gradually sloping basin, which descends    
  toward Lake Chad. There also are central highlands in the Guera region rising
  to 1,500 meters (4,900 ft.).                                                
                                                                       
  Lake Chad is the second-largest lake in West Africa and is one of the most  
  important wetlands on the continent. Home to 120 species of fish and at least
  that many species of birds, the lake has shrunk dramatically in the last four
  decades due to the increased water use and low rainfall. Bordered by Chad,  
  Niger, Nigeria, and Cameroon, Lake Chad currently covers only 1,350 square  
  kilometers, down from 25,000 square kilometers in 1963. The Chari and Logone
  Rivers, both of which originate in the Central African Republic and flow    
  northward, provide most of the water entering Lake Chad.                    
                                                                       
  PEOPLE                                                                      
  There are more than 200 ethnic groups in Chad. Those in the north and east  
  are generally Muslim; most southerners are Christians or animists. Through  
  their long religious and commercial relationships with Sudan and Egypt, many
  of the peoples in Chad's eastern and central regions have become more or less
  Arabized, speaking Arabic and engaging in many other Arab cultural practices
  as well. More than three-quarters of the Chadian population is rural.       
                                                                       
  HISTORY                                                                     
  Chad has a long and rich history. A humanoid skull found in Borkou was dated
  to be more than 3 million years old. Because in ancient times the Saharan   
  area was not totally arid, Chad's population was more evenly distributed than
  it is today. For example, 7,000 years ago, the north central basin, now in  
  the Sahara, was still filled with water, and people lived and farmed around 
  its shores. Cliff paintings in Borkou and Ennedi depict elephants,          
  rhinoceroses, giraffes, cattle, and camels; only camels survive there today.
  The region has been known to traders and geographers since the late Middle  
  Ages. Since then, Chad has served as a crossroads for the Muslim peoples of 
  the desert and savanna regions, and the animist Bantu tribes of the tropical
  forests.                                                                    
                                                                       
  Sao people lived along the Chari River for thousands of years, but their    
  relatively weak chiefdoms were overtaken by the powerful chiefs of what were
  to become the Kanem-Bornu and Baguirmi kingdoms. At their peak, these two   
  kingdoms and the kingdom of Ouaddai controlled a good part of what is now   
  Chad, as well as parts of Nigeria and Sudan. From 1500 to 1900, Arab slave  
  raids were widespread. The French first penetrated Chad in 1891, establishing
  their authority through military expeditions primarily against the Muslim   
  kingdoms. The first major colonial battle for Chad was fought in 1900 between
  the French Major Lamy and the African leader Rabah, both of whom were killed
  in the battle. Although the French won that battle, they did not declare the
  territory pacified until 1911; armed clashes between colonial troops and    
  local bands continued for many years thereafter.                            
                                                                       
  In 1905, administrative responsibility for Chad was placed under a governor 
  general stationed at Brazzaville in what is now Congo. Although Chad joined 
  the French colonies of Gabon, Oubangui-Charo, and Moyen Congo to form the   
  Federation of French Equatorial Africa (AEF) in 1910, it did not have       
  colonial status until 1920. The northern region of Chad was occupied by the 
  French in 1914. In 1959, the territory of French Equatorial Africa was      
  dissolved, and four states--Gabon, the Central African Republic, Congo      
  (Brazzaville), and Chad--became autonomous members of the French Community. 
  On August 11, 1960 Chad became an independent nation under its first        
  president, Francois Tombalbaye.                                             
                                                                       
  A long civil war began as a tax revolt in 1965 and soon set the Muslim north
  and east against the southern-led government. Even with the help of French  
  combat forces, the Tombalbaye government was never able to quell the        
  insurgency. Tombalbaye's rule became more irrational and brutal, leading the
  military to carry out a coup in 1975 and to install Gen. Felix Malloum, a   
  southerner, as head of state. In 1978, Malloum's government was broadened to
  include more northerners. Internal dissent within the government led the    
  northern prime minister, Hissein Habre, to send his forces against the      
  national army in the capital city of N'Djamena in February 1979. The        
  resulting civil war amongst the 11 emergent factions was so widespread that 
  it rendered the central government largely irrelevant. At that point, other 
  African governments decided to intervene.                                   
                                                                       
  A series of four international conferences held first under Nigerian and then
  Organization of African Unity (OAU) sponsorship attempted to bring the      
  Chadian factions together. At the fourth conference, held in Lagos, Nigeria,
  in August 1979, the Lagos accord was signed. This accord established a      
  transitional government pending national elections. In November 1979, the   
  National Union Transition Government (GUNT) was created with a mandate to   
  govern for 18 months. Goukouni Oueddei, a northerner, was named President;  
  Colonel Kamougue, a southerner, Vice President; and Habre, Minister of      
  Defense. This coalition proved fragile; in January 1980, fighting broke out 
  again between Goukouni's and Habre's forces. With assistance from Libya,    
  Goukouni regained control of the capital and other urban centers by year's  
  end. However, Goukouni's January 1981 statement that Chad and Libya had     
  agreed to work for the realization of complete unity between the two        
  countries generated intense international pressure and Goukouni's subsequent
  call for the complete withdrawal of external forces. Libya's partial        
  withdrawal to the Aozou Strip in northern Chad cleared the way for Habre's  
  forces to enter N'Djamena in June. French troops and an OAU peacekeeping    
  force of 3,500 Nigerian, Senegalese, and Zairian troops (partially funded by
  the United States) remained neutral during the conflict.                    
                                                                       
  Habre continued to face armed opposition on various fronts, and was brutal in
  his repression of suspected opponents, massacring and torturing many during 
  his rule. In the summer of 1983, GUNT forces launched an offensive against  
  government positions in northern and eastern Chad with Libyan support. In   
  response to Libya's direct intervention, French and Zairian forces intervened
  to defend Habre, pushing Libyan and rebel forces north of the 16th parallel.
  In September 1984, the French and the Libyan governments announced an       
  agreement for the mutual withdrawal of their forces from Chad. By the end of
  the year, all French and Zairian troops were withdrawn. Libya did not honor 
  the withdrawal accord, and its forces continued to occupy the northern third
  of Chad.                                                                    
                                                                       
  Southern rebel commando groups (CODO) in southern Chad were broken up by    
  government massacres in 1984. In 1985 Habre briefly reconciled with some of 
  his most powerful opponents, including the Chadian Democratic Front and the 
  Coordinating Action Committee of the Democratic Revolutionary Council.      
  Goukouni also began to rally toward Habre, and with his support Habre       
  successfully expelled Libyan forces from most of Chadian territory. A       
  cease-fire between Chad and Libya held from 1987 to 1988, and negotiations  
  over the next several years led to the 1994 International Court of Justice  
  decision granting Chad sovereignty over the Aouzou strip, effectively ending
  Libyan occupation.                                                          
                                                                       
  However, rivalry between Hadjerai, Zaghawa, and Gorane groups within the    
  government grew in the late 1980s. In April 1989, Idriss Deby, one of Habre's
  leading generals and a Zaghawa, defected and fled to Darfur in Sudan, from  
  which he mounted a Zaghawa-supported series of attacks on Habre (a Gorane). 
  In December 1990, with Libyan assistance and no opposition from French troops
  stationed in Chad, Deby's forces successfully marched on N'Djamena. After 3 
  months of provisional government, Deby's Patriotic Salvation Movement (MPS) 
  approved a national charter on February 28, 1991, with Deby as president.   
                                                                       
  In the following 2 years, Deby faced at least two coup attempts. Government 
  forces clashed violently with rebel forces (including the Movement for      
  Democracy and Development, MDD, National Revival Committee for Peace and    
  Democracy (CSNPD), Chadian national Front (FNT), and the Western Armed      
  Forces, FAO) near Lake Chad and in southern regions of the country. Earlier 
  French demands for the country to hold a national conference resulted in the
  gathering of 750 delegates representing political parties (legalized in     
  1992), the government, trade unions, and the army to discuss creation of a  
  pluralist democratic regime.                                                
                                                                       
  Unrest continued, however, sparked in part by large-scale killings of       
  civilians in southern Chad. The CSNPD, led by Kette Moise and other southern
  groups, entered into a peace agreement with government forces in 1994, which
  later broke down. Two new groups, the Armed Forces for a Federal Republic   
  (FARF) led by former Kette ally Laokein Barde and the Democratic Front for  
  Renewal (FDR), and a reformulated MDD clashed with government forces 1994-95.
                                                                       
  Talks with political opponents in early 1996 did not go well, but Deby      
  announced his intent to hold presidential elections in June. Deby won the   
  country's first multi-party presidential elections with support in the second
  round from opposition leader Kebzabo, defeating General Kamougue (leader of 
  the 1975 coup against Tombalbaye). Deby's MPS party won 63 of 125 seats in  
  the January 1997 legislative elections. International observers noted       
  numerous serious irregularities in presidential and legislative election    
  proceedings.                                                                
                                                                       
  By mid-1997 the government signed peace deals with FARF and the MDD         
  leadership and succeeded in cutting off the groups from their rear bases in 
  the Central African Republic and Cameroon. Agreements also were struck with 
  rebels from the National Front of Chad (FNT) and Movement for Social Justice
  and Democracy in October 1997. However, peace was short-lived, as FARF rebels
  clashed with government soldiers, finally surrendering to government forces 
  in May 1998. Barde was killed in the fighting, as were hundreds of other    
  southerners, most civilians.                                                
                                                                       
  From 1998 to 2003, Chadian Movement for Justice and Democracy (MDJT) rebels 
  skirmished periodically with government troops in the Tibesti region,       
  resulting in hundreds of civilian, government, and rebel casualties, but    
  little ground won or lost. Following an accord with the government in 2003, 
  several hundred rebels rejoined the Chadian Army. Armed remnants of the MDJT
  linger in the Tibesti region, but no active armed opposition has emerged in 
  other parts of Chad.                                                        
                                                                       
  In May 2001, Deby won a flawed 63% first-round victory in presidential      
  elections after legislative elections were postponed until spring 2002. Six 
  opposition leaders were arrested (twice), and one opposition party activist 
  was killed following the announcement of election results. However, despite 
  claims of government corruption, favoritism of Zaghawas, and security forces
  abuses, opposition party and labor union calls for general strikes and more 
  active demonstrations against the government were unsuccessful.             
                                                                       
  In May 2004, the National Assembly voted in favor of an amendment to the    
  Constitution that would allow President Deby to run again. The amendment was
  approved in a national referendum June 2005 and abolished presidential term 
  limits. In April 2006, the capital city of N'djamena was attacked by the    
  United Front for Democratic Change--which was led by the Tama ethnic        
  group--coordinating with another Chadian rebel organization from President  
  Deby's Zaghawa ethnic group. The government put down the attacks. On May 3, 
  2006 Deby was elected to his third presidential term with a substantial     
  majority, according to Chadian election officials. Provisional figures showed
  Deby receiving 77.6% of the vote. More than 60% of Chad's 5.8 million       
  registered voters cast ballots.                                             
                                                                       
  GOVERNMENT AND POLITICAL CONDITIONS                                         
  The constitutional basis for the government is the 1996 Constitution. A     
  strong executive branch headed by the president dominates the Chadian       
  political system. Following his December 1990 military overthrow of Hissein 
  Habre, Idriss Deby in the mid-1990s gradually restored basic functions of   
  government and entered into agreements with the World Bank and the          
  International Monetary Fund (IMF) intended to carry out substantial economic
  reforms, including the Doba Basin oil extraction project.                   
                                                                       
  The president has the power to appoint the prime minister and the Council of
  State (or cabinet), and exercises considerable influence over appointments of
  judges, generals, provincial officials and heads of Chad's parastatal firms.
  In cases of grave and immediate threat, the president, in consultation with 
  the National Assembly President and Council of State, may declare a state of
  emergency. Most of the Deby's key advisers are members of the Zaghawa clan, 
  although some southern and opposition personalities are represented in his  
  government.                                                                 
                                                                       
  According to the 1996 Constitution, National Assembly deputies are elected by
  universal suffrage for 4-year terms. Parliamentary elections were last held 
  in April 2002, with President Deby's MPS party winning a large majority. The
  Assembly holds regular sessions twice a year, starting in March and October,
  and can hold special sessions as necessary and called by the prime minister.
  Deputies elect a president of the National Assembly every 2 years. Assembly 
  deputies or members of the executive branch may introduce legislation; once 
  passed by the Assembly, the president must take action to either sign or    
  reject the law within 15 days. The National Assembly must approve the prime 
  minister's plan of government and may force the prime minister to resign    
  through a majority vote of no confidence. However, if the National Assembly 
  rejects the executive branch's program twice in one year, the president may 
  disband the Assembly and call for new legislative elections. In practice, the
  president exercises considerable influence over the National Assembly through
  the MPS party structure.                                                    
                                                                       
  Despite the Constitution's guarantee of judicial independence from the      
  executive branch, the president names most key judicial officials. The      
  Supreme Court is made up of a chief justice, named by the president, and 15 
  councilors chosen by the president and National Assembly; appointments are  
  for life. The Constitutional Council, with nine judges elected to 9-year    
  terms, has the power to review all legislation, treaties and international  
  agreements prior to their adoption. The Constitution recognizes customary and
  traditional law in locales where it is recognized and to the extent it does 
  not interfere with public order or constitutional guarantees of equality for
  all citizens.                                                               
                                                                       
  Principal Government Officials                                              
  President--Idriss Deby                                                      
  Prime Minister--Nouradine Delwa Kassire Koumakoye                           
  Minister of Foreign Affairs and African Integration--Ahmad Allam-mi         
  President of the National Assembly--Nassour Guelengdouksia Ouaidou          
  Ambassador to U.S.--Mahamat Adam Bechir                                     
                                                                       
  The Republic of Chad maintains an embassy in the United States at 2002 R    
  Street, NW, Washington, DC 20009 (tel: 202-462-4009; fax 202-265-1937).     
                                                                       
  DEFENSE                                                                     
  Under President Hissein Habre, members of Gourane, Zaghawa, Kanembou,       
  Hadjerai, and Massa ethnic groups dominated the military. Idriss Deby, a    
  member of the minority Zaghawa-related Bidyate clan and a top military      
  commander, revolted and fled to Sudan, taking with him many Zaghawa and     
  Hadjerai soldiers in 1989. The forces that Deby led into N'Djamena on       
  December 1, 1990 to oust President Habre were mainly Zaghawa (including a   
  large number of Sudanese), many of whom were recruited while Deby was in the
  bush. Deby's coalition also included a small number of Hadjerais and        
  southerners.                                                                
                                                                       
  Chad's armed forces numbered about 36,000 at the end of the Habre regime but
  swelled to an estimated 50,000 in the early days of Idriss Deby. With French
  support, a reorganization of the armed forces was initiated early in 1991   
  with the goal of reducing the size of the armed forces. An essential element
  of this effort was to make the ethnic composition of the armed forces       
  reflective of the country as a whole. While the military's size has been    
  reduced to approximately 25,000 soldiers, leadership positions are still    
  dominated by the Zaghawa.                                                   
                                                                       
  Following Idriss Deby's rise to power, Habre loyalists continued to fight   
  government troops and rob civilians around Lake Chad. In the mid- and       
  late-1990s, a rebellion in the south by the FARF delayed the promised oil   
  development until crushed by government forces. Most recently, the Movement 
  for Democracy and Justice in Tchad (MDJT) launched the most serious threat to
  Deby's hold on power, but little progress was ever made on either side. In  
  January 2002, the government and the MDJT signed a formal peace accord.     
  Although remnants are still present in the North, active rebellion there has
  been negligible since late 2003.                                            
                                                                       
  Long, porous borders continue to render Chad vulnerable to incursions. In   
  March 2004, the Algerian terrorist organization, the Salafist Group for     
  Preaching and Combat (GSPC), strayed into Chadian territory, where they were
  engaged by Chadian armed forces. Since the 2003 outbreak of the Darfur crisis
  in Sudan, armed militias have occasionally crossed into Chad, resulting in  
  small-scale skirmishes. In response to such ongoing threats Chad has joined 
  in the Pan Sahel Initiative (PSI), a U.S. Government military-to-military   
  assistance program which helps participant countries counter terrorist      
  operations, border incursions, and trafficking of people, illicit materials,
  and other goods. Initial PSI training was completed in Chad in July 2004.   
                                                                       
  ECONOMY                                                                     
  In 2006, Chad's GDP was estimated at approximately $5.255 billion. Oil,     
  cotton, cattle, and gum arabic are Chad's major exports.                    
                                                                       
  The effects on foreign investment of years of civil war are still felt today,
  as investors who left Chad between 1979-82 have only recently begun to regain
  confidence in the country's future. The most important economic venture to  
  date is the Doba Basin oil extraction project in southern Chad. The project 
  included unique mechanisms for World Bank, private sector, government, and  
  civil society collaboration to guarantee that future oil revenues would     
  benefit local populations and result in poverty alleviation.                
                                                                       
  Oil exploitation in the southern Doba region began in June 2000, with       
  U.S.-based Exxon Mobil leading a consortium in a $3.7 billion project to    
  export oil via a 1,000-km. buried pipeline through Cameroon to the Gulf of  
  Guinea. Beginning in late 2000, development of Chad's petroleum sector      
  stimulated economic growth by attracting major investment and increased     
  levels of U.S. trade. Oil revenue began trickling into the country in July  
  2004. It was hoped that this project would serve as a catalyst for the entire
  economy by helping to reduce energy costs and attracting additional trade and
  investment in other sectors. However, the question remains whether Chad will
  continue to consolidate its economic reforms and invest its oil revenues    
  wisely in order to encourage a wider range of economic initiatives. Political
  controversy surrounding elections and a rebellion in northern Chad also     
  dampen Chad's economic prospects somewhat by exposing the weaknesses in     
  Chad's political institutions.                                              
                                                                       
  The U.S. Government expressed both concern and disappointment after the     
  Government of Chad on August 26, 2006 ordered Chevron Oil Corporation and   
  Petronas, members of the Exxon Mobil-led and operated oil consortium, to    
  cease operations and leave Chad within 24 hours for alleged non-payment of  
  income taxes.                                                               
                                                                       
  Chevron and Petronas entered into a tax agreement in 2000 with the          
  government, represented by Petroleum Minister Mahamat Hassan Nasser, when   
  they replaced Elf and Shell as minority members of the consortium. The      
  companies assert that the agreement authorizes them to use a special        
  depreciation schedule allowing greater tax deductions than those afforded   
  consortium partner Exxon Mobil. The Government of Chad, however, claimed that
  the 2000 tax agreement was illegal, because it was negotiated by officials  
  without proper authority and was not vetted by the National Assembly. The   
  Government of Chad also announced plans to press charges against negotiating
  officials, and on August 28, 2006 replaced Nasser, as well as Economic      
  Minister Mahamat Ali Hassan and Farming Minister Moucktar Moussa. Chevron and
  Petronas consider the Government of Chad to have violated its contractual   
  obligations and planned to seek recourse through all diplomatic and legal   
  means. While the U.S. takes no position on the merits of the dispute, it has
  urged all parties involved to respect any binding contractual commitments.  
                                                                       
  Despite recent development of the petroleum sector, more than 80% of the work
  force is involved in agriculture (subsistence farming, herding, and fishing).
  Like many other developing countries, Chad has a small formal sector and a  
  large, thriving informal sector. Statistics indicate the following          
  distribution as percentage of GDP: Agriculture--32.5% (farming, livestock,  
  fishing); industry--26.6%; and services--40.8%. Chad is highly dependent on 
  foreign assistance. Its principal donors include the European Union, France,
  and the multilateral lending agencies.                                      
                                                                       
  Primary markets for Chadian exports include neighboring Cameroon and Nigeria
  and France, Germany, and Portugal. Aside from oil, cotton remains a primary 
  export, although exact figures are not available. Rehabilitation of         
  CotonTchad, the major cotton company that suffered from a decline in world  
  cotton prices, has been financed by France, the Netherlands, the European   
  Economic Community (EC), and the International Bank for Reconstruction and  
  Development (IBRD). The parastatal is now being privatized.                 
                                                                       
  The other major export is livestock, herded to neighboring countries.       
  Herdsmen in the Sudanic and Sahelian zones raise cattle, sheep, goats, and, 
  among the non-Muslims, a few pigs. In the Saharan region, only camels and a 
  few hardy goats can survive. Chad also sells smoked and dried fish to its   
  neighbors and exports several million dollars worth of gum arabic to Europe 
  and the United States each year. Other food crops include millet, sorghum,  
  peanuts, rice, sweet potatoes, manioc, cassava, and yams.                   
                                                                       
  After averaging 0.8% in 1999-2000, Chad's real GDP growth was estimated at  
  8.9% in 2001, and 10% in 2002 and 2003 as the Doba oil project accelerated. 
  Inflation rose from 3.7% in 2000 to 12.4% in 2001, dropped to 5.2% in 2002, 
  and was estimated to level out at 3% in 2004. These fluctuations were due in
  large part to increasing demand from the Doba project but also to           
  fluctuations in agricultural production. After a disappointing agricultural 
  campaign in 2000, increased production during the 2001-02 timeframe helped  
  reduce inflation in 2002. In 2003, the contraction in investments, the 7%   
  appreciation in the CFA Franc exchange rate, and bumper harvests combined to
  generate a 1% deflation in place of the projected 4.3% inflation. Chad's    
  economic performance, at least until the onset of oil exports, continued to 
  depend on fluctuations in rainfall and in prices of its principal export    
  commodities, especially cotton.                                             
                                                                       
  Since 1995, the Government of Chad has made incremental progress in         
  implementing structural reforms and improving government finances under two 
  successive structural adjustment programs. Most state enterprises have been 
  partially or completely privatized, non-priority public spending has been   
  lessened, and the government has gradually liberalized some key sectors of  
  the economy. Liberalization of the telecommunications, cotton, and energy   
  sectors is expected to proceed over the next several years. Chad reached the
  enhanced Heavily Indebted Poor Countries (HIPC) initiative completion point 
  in May 2001.                                                                
                                                                       
  FOREIGN RELATIONS                                                           
  Chad is officially nonaligned but has close relations with France, the former
  colonial power, and other members of the Western community. It receives     
  economic aid from countries of the European Union, the United States, and   
  various international organizations. Libya supplies aid and has an ambassador
  resident in N'Djamena.                                                      
                                                                       
  Other resident diplomatic missions in N'Djamena include the embassies of    
  France, the United States, Egypt, Algeria, Iraq, Sudan, Germany, Central    
  African Republic, Democratic Republic of the Congo, Nigeria, Taiwan,        
  Cameroon, and the European Economic Community. A number of other countries  
  have nonresident ambassadors. In 1988, Chad recognized the State of         
  Palestine, which maintains a mission in N'Djamena. Chad has not recognized  
  the State of Israel.                                                        
                                                                       
  With the exception of Libya, with which relations are turbulent, Chad has   
  generally good rapport with its neighbors. Although relations with Libya    
  improved with the advent of the Deby government, strains persist. Chad has  
  been an active champion of regional cooperation through the Central African 
  Economic and Customs Union, the Lake Chad and Niger River Basin Commissions,
  and the Interstate Commission for the Fight Against the Drought in the Sahel.
                                                                       
  Chad belongs to the following international organizations: UN and some of its
  specialized and related agencies; African Union; Central African Customs and
  Economic Union (UDEAC); African Financial Community (Franc Zone); Agency for
  the Francophone Community; African, Caribbean and Pacific Group of States;  
  African Development Bank; Central African States Development Bank; Economic 
  and Monetary Union of Central African (CEMAC); Economic Commission for      
  Africa; G-77; International Civil Aviation Organization; International      
  Confederation of Free Trade Unions; International Red Cross and Red Crescent
  Movement; International Development Association; Islamic Development Bank;  
  International Fund for Agricultural Development; International Finance      
  Corporation; International Federation of the Red Cross and Red Crescent     
  Societies; International Labor Organization; International Monetary Fund;   
  Interpol; International Olympic Committee; International Telecommunication  
  Union; NAM; Organization of the Islamic Conference; Organization for the    
  Prohibition of Chemical Weapons; Universal Postal Union; World Confederation
  of Labor; World Intellectual Property Organization; World Meteorological    
  Organization; World Tourism Organization; World Trade Organization.         
                                                                       
  U.S.-CHAD RELATIONS                                                         
  Relations between the United States and Chad are good. The American embassy 
  in N'Djamena, established at Chadian independence in 1960, was closed from  
  the onset of the heavy fighting in the city in 1980 until the withdrawal of 
  the Libyan forces at the end of 1981. It was reopened in January 1982. The  
  U.S. Agency for International Development (USAID) and the U.S. Information  
  Service (USIS) offices resumed activities in Chad in September 1983.        
                                                                       
  The United States enjoys cordial relations with the Deby government. Chad has
  proved a valuable partner in the global war on terror, and in providing     
  shelter to approximately 200,000 refugees of Sudan's Darfur crisis along its
  eastern border.                                                             
                                                                       
  Before permanently closing its Chad mission in 1995 because of declining    
  funds and security concerns, USAID's development program in Chad concentrated
  on the agricultural, health, and infrastructure sectors. It also included   
  projects in road repair and maintenance, maternal and child health, famine  
  early warning systems, and agricultural marketing. A number of American     
  voluntary agencies (notably AFRICARE and VITA) continue to operate in Chad. 
  Peace Corps has traditionally had a large presence in Chad, with volunteers 
  arriving during the postwar period in September 1987, then withdrawing in   
  1998. Peace Corps operations resumed in September 2003, with a group of 20  
  new volunteers. The second class of 17 volunteers arrived in September 2004.
  Both groups focused on teaching English; expansion into other areas was     
  planned for 2005.                                                           
                                                                       
  Principal U.S. Officials                                                    
  Ambassador--Marc Wall                                                       
  Deputy Chief of Mission--Lucy Tamlyn                                        
  Political/Economic Officer--Rebecca Daley                                   
  Consular/Economic Officer--Arthur Bell                                      
  Management Officer--Sharon James                                            
  Public Affairs Officer--Arthur Bell                                         
  Regional Security Officer--Bradley Markwald                                 
  Defense Attache--Lt. Col. Tim Mitchell                                      
                                                                       
  The U.S. Embassy in Chad is located on Avenue Felix Eboue, N'Djamena, (tel: 
  235-51-70-09, 235-51-90-52, or 235-51-92-33; fax 235-51-56-54).             
                                                                       
  TRAVEL AND BUSINESS INFORMATION                                             
  The U.S. Department of State's Consular Information Program advises Americans
  traveling and residing abroad through Consular Information Sheets, Public   
  Announcements, and Travel Warnings. Consular Information Sheets exist for all
  countries and include information on entry and exit requirements, currency  
  regulations, health conditions, safety and security, crime, political       
  disturbances, and the addresses of the U.S. embassies and consulates abroad.
  Public Announcements are issued to disseminate information quickly about    
  terrorist threats and other relatively short-term conditions overseas that  
  pose significant risks to the security of American travelers. Travel Warnings
  are issued when the State Department recommends that Americans avoid travel 
  to a certain country because the situation is dangerous or unstable.        
                                                                       
  For the latest security information, Americans living and traveling abroad  
  should regularly monitor the Department's Bureau of Consular Affairs Internet
  web site at http://www.travel.state.gov, where the current Worldwide Caution,
  Public Announcements, and Travel Warnings can be found. Consular Affairs    
  Publications, which contain information on obtaining passports and planning a
  safe trip abroad, are also available at http://www.travel.state.gov. For    
  additional information on international travel, see http://www.usa.gov/     
  Citizen/Topics/Travel/International.shtml.                                  
                                                                       
  The Department of State encourages all U.S citizens who traveling or residing
  abroad to register via the State Department's travel registration website or
  at the nearest U.S. embassy or consulate abroad. Registration will make your
  presence and whereabouts known in case it is necessary to contact you in an 
  emergency and will enable you to receive up-to-date information on security 
  conditions.                                                                 
                                                                       
  Emergency information concerning Americans traveling abroad may be obtained 
  by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular   
  toll line 1-202-501-4444 for callers outside the U.S. and Canada.           
                                                                       
  The National Passport Information Center (NPIC) is the U.S. Department of   
  State's single, centralized public contact center for U.S. passport         
  information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service   
  representatives and operators for TDD/TTY are available Monday-Friday, 7:00 
  a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.           
                                                                       
  Travelers can check the latest health information with the U.S. Centers for 
  Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP
  (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the
  most recent health advisories, immunization recommendations or requirements,
  and advice on food and drinking water safety for regions and countries. A   
  booklet entitled "Health Information for International Travel" (HHS         
  publication number CDC-95-8280) is available from the U.S. Government       
  Printing Office, Washington, DC 20402, tel. (202) 512-1800.                 
                                                                       
  Further Electronic Information                                              
  Department of State Web Site. Available on the Internet at http://          
  www.state.gov, the Department of State web site provides timely, global     
  access to official U.S. foreign policy information, including Background    
  Notes and daily press briefings along with the directory of key officers of 
  Foreign Service posts and more. The Overseas Security Advisory Council (OSAC)
  provides security information and regional news that impact U.S. companies  
  working abroad through its website http://www.osac.gov                      
                                                                       
  Export.gov provides a portal to all export-related assistance and market    
  information offered by the federal government and provides trade leads, free
  export counseling, help with the export process, and more.                  
  STAT-USA/Internet, a service of the U.S. Department of Commerce, provides   
  authoritative economic, business, and international trade information from  
  the Federal government. The site includes current and historical            
  trade-related releases, international market research, trade opportunities, 
  and country analysis and provides access to the National Trade Data Bank.   
 
***********************************************************
See http://www.state.gov/r/pa/bgn/ for all Background notes
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