Honduras

 

Bureau of Western Hemisphere Affairs                                          
June 2007                                                                     
                                                                       
  Background Note: Honduras                                                   
                                             
  Mayan ruins at Copan Ruinas,                                                
  Honduras. May 1995. [© AP Images]                                           
                                                                       
  Flag of Honduras is three equal horizontal bands of blue (top), white, and  
  blue with five blue, five-pointed stars arranged in an X pattern centered in
  the white band; the stars represent the members of the former Federal       
  Republic of Central America -- Costa Rica, El Salvador, Guatemala, Honduras,
  and Nicaragua.                                                              
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Republic of Honduras                                                        
                                                                       
  Geography                                                                   
  Area: 112,090 sq. km. (43,278 sq. mi.); slightly larger than Virginia.      
  Cities: Capital--Tegucigalpa (1,150,000); San Pedro Sula (800,000-900,000). 
  Terrain: Mountainous.                                                       
  Climate: Tropical to subtropical, depending on elevation.                   
                                                                       
  People                                                                      
  Nationality: Noun and adjective--Honduran(s).                               
  Population (2006 est.): 7.3 million.                                        
  Growth rate (2006 est.): 2.16%.                                             
  Ethnic groups: 90% mestizo (mixed Indian and European); others of European, 
  Arab, African, or Asian ancestry; and indigenous Indians.                   
  Religions: Roman Catholic, Protestant minority.                             
  Language: Spanish.                                                          
  Education (2003): Years compulsory--6. Attendance--88% overall, 31% at junior
  high level. Literacy--76.2%.                                                
  Health: Infant mortality rate--29.64/1,000. Life expectancy--66.2 yrs.      
  Work force: Services--42.2%; natural resources/agriculture--35.9%;          
  manufacturing--16.3%; construction/housing--5.6%.                           
                                                                       
  Government                                                                  
  Type: Democratic constitutional republic.                                   
  Independence: September 15, 1821.                                           
  Constitution: 1982; amended 1999.                                           
  Branches: Executive--president, directly elected to 4-year term.            
  Legislative--unicameral National Congress, elected for 4-year term.         
  Judicial--Supreme Court of Justice (appointed for a 7-year term by Congress 
  and confirmed by the president); several lower courts.                      
  Political parties: National Party, Liberal Party, Innovation and National   
  Unity Party, Christian Democratic Party, and the Democratic Unification     
  Party.                                                                      
  Suffrage: Universal and compulsory at age 18.                               
  Administrative subdivisions: 18 departments.                                
                                                                       
  Economy (2006 est.)                                                         
  GDP: $22.3 billion (PPP) or $9.3 billion (official exchange rate).          
  Growth rate: 5.5%.                                                          
  Per capita GDP: $2,900 (PPP).                                               
  Per capita income: $ 894.00                                                 
  Natural resources: Arable land, forests, minerals, and fisheries.           
  Agriculture (14.1% of GDP): Products--coffee, bananas, shrimp and lobster,  
  sugar, fruits, basic grains, and livestock.                                 
  Manufacturing (18% of GDP): Types--textiles and apparel, cement, wood       
  products, cigars, and foodstuffs.                                           
  Services (53.2% of GDP).                                                    
  Trade: Exports (goods)--$1.95 billion: apparel, coffee, shrimp, bananas, palm
  oil, gold, zinc/lead concentrates, soap/detergents, melons, lobster,        
  pineapple, lumber, sugar, and tobacco. Major market--U.S. (54.4%). Imports  
  (goods)--$5.00 billion: fabrics, yarn, machinery, chemicals, petroleum,     
  vehicles, processed foods, metals, agricultural products, plastic articles, 
  and paper articles. Major source--U.S. (37.5%).                             
                                                                       
  PEOPLE                                                                      
  About 90% of the population is mestizo. There also are small minorities of  
  European, African, Asian, Arab, and indigenous Indian descent. Most Hondurans
  are Roman Catholic, but Protestant churches are growing in number. While    
  Spanish is the predominant language, some English is spoken along the       
  northern coast and is prevalent on the Caribbean Bay Islands. Several       
  indigenous Indian languages and Garífuna (a mixture of Afro-indigenous      
  languages) are also spoken. The restored Mayan ruins near the Guatemalan    
  border in Copan reflect the great Mayan culture that flourished there for   
  hundreds of years until the early 9th century. Columbus landed at mainland  
  Honduras (Trujillo) in 1502, and named the area "Honduras" (meaning "depths")
  for the deep water off the coast. Spaniard Hernan Cortes arrived in 1524.   
                                                                       
  HISTORY                                                                     
                                                                       
  Independence                                                                
  Honduras and other Central American provinces gained independence from Spain
  in 1821. The country was then briefly annexed to the Mexican Empire. In 1823,
  Honduras joined the newly formed United Provinces of Central America        
  federation, which collapsed in 1838. Gen. Francisco Morazan--a Honduran     
  national hero--led unsuccessful efforts to maintain the federation. Honduras'
  agriculture-based economy was dominated in the 1900s by U.S. companies that 
  established vast banana plantations along the north coast. Foreign capital, 
  plantation life, and conservative politics held sway in Honduras from the   
  late 19th century until the mid-20th century.                               
                                                                       
  Military Rule                                                               
  Authoritarian Gen. Tiburcio Carias Andino controlled Honduras during the    
  Great Depression, until 1948. In 1955--after two authoritarian              
  administrations and a strike by banana workers--young military reformists   
  staged a coup that installed a provisional junta and paved the way for      
  constituent assembly elections in 1957. This assembly appointed Ramon Villeda
  Morales as President and transformed itself into a national legislature with
  a 6-year term. The Liberal Party ruled during 1957-63. In 1963, conservative
  military officers preempted constitutional elections and deposed Villeda in a
  bloody coup. These officers exiled Liberal Party members and took control of
  the national police. The armed forces, led by Gen. Lopez Arellano, governed 
  until 1970. Popular discontent continued to rise after a 1969 border war with
  El Salvador, known as "the Soccer War." A civilian President--Ramon Cruz of 
  the National Party--took power briefly in 1970 but proved unable to manage  
  the government. In 1972, Gen. Lopez staged another coup. Lopez adopted more 
  progressive policies, including land reform, but his regime was brought down
  in the mid-1970s by corruption scandals. The regimes of Gen. Melgar Castro  
  (1975-78) and Gen. Paz Garcia (1978-82) largely built the current physical  
  infrastructure and telecommunications system of Honduras. The country also  
  enjoyed its most rapid economic growth during this period, due to greater   
  international demand for its products and the availability of foreign       
  commercial lending.                                                         
                                                                       
  Seven Consecutive Democratic Elections                                      
  Following the overthrow of Anastasio Somoza in Nicaragua in 1979 and general
  instability in El Salvador at the time, Hondurans elected a constituent     
  assembly in 1980 and voted in general elections in 1981. A new constitution 
  was approved in 1982, and the Liberal Party government of President Roberto 
  Suazo Cordoba took office. Suazo relied on U.S. support during a severe     
  economic recession, including ambitious social and economic development     
  projects sponsored by the U.S. Agency for International Development (USAID).
  Honduras became host to the largest Peace Corps mission in the world, and   
  nongovernmental and international voluntary agencies proliferated.          
                                                                       
  As the 1985 election approached, the Liberal Party interpreted election law 
  as permitting multiple presidential candidates from one party. The Liberal  
  Party claimed victory when its presidential candidates, who received 42% of 
  the vote, collectively outpolled the National Party candidate, Rafael       
  Leonardo Callejas. Jose Azcona Hoyo, the candidate receiving the most votes 
  among the Liberals, assumed the presidency in 1986. With the endorsement of 
  the Honduran military, the Azcona administration ushered in the first       
  peaceful transfer of power between civilian presidents in more than 30 years.
                                                                       
  Four years later, Nationalist Rafael Callejas won the presidential election,
  taking office in 1990. The nation's fiscal deficit ballooned during Callejas'
  last year in office. Growing public dissatisfaction with the rising cost of 
  living and with widespread government corruption led voters in 1993 to elect
  Liberal Party candidate Carlos Roberto Reina with 56% of the vote. President
  Reina, elected on a platform calling for a "moral revolution," actively     
  prosecuted corruption and pursued those responsible for human rights abuses 
  in the 1980s. He created a modern attorney general's office and an          
  investigative police force, increased civilian control over the armed forces,
  transferred the police from military to civilian authority, and restored    
  national fiscal health.                                                     
                                                                       
  After winning the 1997 election by a 10% margin, Liberal Carlos Roberto     
  Flores Facusse took office in 1998. Flores inaugurated programs of reform and
  modernization of the Honduran government and economy, with emphasis on      
  helping Honduras' poorest citizens while maintaining the country's fiscal   
  health and improving international competitiveness. In October 1998,        
  Hurricane Mitch devastated Honduras, leaving more than 5,000 people dead and
  1.5 million displaced. Damages totaled nearly $3 billion. President Flores  
  and his administration successfully managed more than $600 million in       
  international assistance. Flores also moved judicial and penal reforms      
  forward, establishing an anticorruption commission, and supporting passage of
  a new penal code based on the oral accusatorial system and a law that created
  an independent Supreme Court. Flores also established a civilian Minister of
  Defense.                                                                    
                                                                       
  Ricardo Maduro Joest of the National Party won the 2001 presidential        
  elections, and was inaugurated in 2002. During his campaign, President Maduro
  promised to reduce crime, reinvigorate the economy, and fight corruption.   
  Maduro's first act as President was to deploy a joint police-military force 
  to the streets to permit wider neighborhood patrols in the ongoing fight    
  against the country's massive crime and gang problem. Maduro was a strong   
  supporter of the global war on terrorism and joined the U.S.-led coalition in
  Iraq with an 11-month contribution of 370 troops. Under President Maduro's  
  guidance, Honduras also negotiated and ratified the U.S.-Central America Free
  Trade Agreement (CAFTA), received debt relief, became the first Latin       
  American country to sign a Millennium Challenge Account compact with the    
  U.S., and actively promoted greater Central American integration.           
                                                                       
  Jose Manuel "Mel" Zelaya Rosales of the Liberal Party won the November 27,  
  2005 presidential elections with less than a 4% margin of victory, the      
  smallest margin ever in Honduran electoral history. Zelaya's campaign theme 
  was "citizen power," and he has vowed to increase transparency and combat   
  narcotrafficking, while maintaining macroeconomic stability. The Liberal    
  Party won 62 of the 128 congressional seats, just short of an absolute      
  majority. Zelaya was inaugurated on January 27, 2006.                       
                                                                       
  GOVERNMENT                                                                  
  The 1982 constitution provides for a strong executive, a unicameral National
  Congress, and a judiciary appointed by the National Congress. The president 
  is directly elected to a 4-year term by popular vote. The Congress also     
  serves a 4-year term; congressional seats are assigned the parties'         
  candidates in proportion to the number of votes each party receives in the  
  various departments. The judiciary includes a Supreme Court of Justice (one 
  president and 14 magistrates chosen by Congress for a seven-year term),     
  courts of appeal, and several courts of original jurisdiction--such as labor,
  tax, and criminal courts. For administrative purposes, Honduras is divided  
  into 18 departments, with municipal officials selected for 4-year terms.    
                                                                       
  POLITICAL CONDITIONS                                                        
  Reinforced by the media and several political watchdog organizations,       
  concerted efforts to protect human rights and civil liberties continued.    
  Organized labor now represents approximately 8% of the work force and its   
  economic and political influence has declined. Honduras held its seventh    
  consecutive democratic elections in 2005 to elect a new president, unicameral
  Congress, and mayors. For the first time, as a result of the newly reformed 
  Electoral Law, voters were able to vote for individual members of Congress, 
  with photos of each candidate on the ballot, rather than party lists. For the
  electoral period 2006-2010, 31 women were elected to Congress; 27 of them   
  chose women as their alternates for a total of 58 women in the legislature, 
  an unprecedented number in the political history of the country.            
                                                                       
  Political Parties                                                           
  The two major parties are the slightly left-of-center Liberal Party and the 
  slightly-right-of-center National Party. The three much smaller registered  
  parties--the Christian Democratic Party, the Innovation and National Unity  
  Party, and the Democratic Unification Party--hold a few seats each in the   
  Congress, but have never come close to winning the presidency.              
                                                                       
  Principal Government Officials                                              
  President--Jose Manuel "Mel" ZELAYA Rosales                                 
  Minister of Foreign Relations--Milton JIMENEZ Puerto                        
  President of Congress--Roberto MICHELETTI                                   
  Ambassador to the United States--Roberto FLORES Bermúdez                    
  Ambassador to the United Nations--Ivan ROMERO Martinez                      
  Ambassador to the OAS--Carlos SOSA Coello                                   
                                                                       
  Honduras maintains an embassy in the United States at 3007 Tilden Street NW,
  Washington, DC 20008 (tel. 202-966-7702).                                   
                                                                       
  ECONOMY                                                                     
  Honduras is one of the poorest and least developed countries in Latin       
  America, with nearly two-thirds of Hondurans living in poverty. Although    
  historically dependent on exports of coffee and bananas, the economy has    
  diversified over the past 20 years with the development of non-traditional  
  exports such as oriental vegetables, cultivated shrimp, melons, and tourism,
  and the establishment of a growing maquila industry (primarily assembly of  
  apparel for re-export). The maquila industry employs approximately 130,000  
  Hondurans. Honduras also has extensive forest, marine, and mineral resources,
  although widespread slash-and-burn agricultural methods and illegal logging 
  continue to destroy Honduran forests. Family remittances from Hondurans     
  living abroad (mostly in the United States) have risen significantly, to an 
  estimated $2.3 billion in 2006, which represents 15% of the country's foreign
  exchange earnings and over 20% of its GDP.                                  
                                                                       
  The exchange rate through the first quarter of 2007 was 18.89 Honduran      
  Lempira to the dollar, a slight devaluation from the 2005 rate of 18.92.    
  Inflation, as measured by the consumer price index, was estimated at        
  approximately 6.0% in 2006 and was projected to remain at that rate in 2007.
  International reserves totaled $2.6 billion in 2006, up from an estimated   
  $2.23 billion in 2005. Unemployment was estimated at around 28% in 2005.    
                                                                       
  In 2005, Honduras reached completion point under the Heavily Indebted Poor  
  Countries (HIPC) initiative, qualifying the country for multilateral debt   
  relief.                                                                     
                                                                       
  NATIONAL SECURITY                                                           
  With the cessation of the 1980s civil wars in El Salvador and Nicaragua, the
  Honduran armed forces refocused their orientation toward combating          
  transnational threats such as narcoterrorism and organized crime. Honduras  
  supports efforts at regional integration and deployed troops to Iraq in     
  support of Operation Iraqi Freedom. In 1999, the constitution was amended to
  abolish the position of military commander in chief of the armed forces, thus
  codifying civilian authority over the military. Former President Flores also
  named the first civilian Minister of Defense in the country's history.      
                                                                       
  FOREIGN RELATIONS                                                           
  Honduras is a member of the United Nations, the World Trade Organization    
  (WTO), the Organization of American States (OAS), the Central American      
  Parliament (PARLACEN), the Central American Integration System (SICA), the  
  Conference of Central American Armed Forces (CFAC), and the Central American
  Security Commission (CASC). During 1995-96, Honduras--a founding member of  
  the United Nations--served as a nonpermanent member of the UN Security      
  Council for the first time. Honduras is currently a member of the UN Human  
  Rights Commission. Honduras is a party to all UN and OAS counterterrorism   
  conventions and protocols.                                                  
                                                                       
  Honduras is a strong proponent of Central American cooperation and          
  integration, and continues to work towards the implementation of a regional 
  customs union and Central American passport, which would ease border controls
  and tariffs among Honduras, Guatemala, Nicaragua, and El Salvador.          
                                                                       
  In 1969, El Salvador and Honduras fought the brief "Soccer War" over disputed
  border areas. The two countries formally signed a peace treaty in 1980, which
  put the border dispute before the International Court of Justice (ICJ). In  
  1992, the Court awarded most of the disputed territory to Honduras, and in  
  January 1998, Honduras and El Salvador signed a border demarcation treaty to
  implement the terms of the ICJ decree although delays continue due to       
  technical difficulties. However, Honduras and El Salvador maintain normal   
  diplomatic and trade relations. Honduras also has unresolved maritime border
  disputes with El Salvador, Nicaragua, Jamaica, and Cuba.                    
                                                                       
  U.S.-HONDURAN RELATIONS                                                     
                                                                       
  Overview                                                                    
  The United States and Honduras have close and friendly relations. Honduras is
  supportive of U.S. policy in the United Nations and other fora, as well of  
  the war on terrorism. Honduras was among the first countries to sign an     
  International Criminal Court (ICC) Article 98 Agreement with the U.S., and  
  the Honduran port of Puerto Cortes is part of the U.S. Container Security   
  Initiative (CSI).                                                           
                                                                       
  The United States favors stable, peaceful relations between Honduras and its
  Central American neighbors. During the 1980s, Honduras supported U.S. policy
  opposing a revolutionary Marxist government in Nicaragua and an active      
  leftist insurgency in El Salvador. The Honduran Government also played a key
  role in negotiations that culminated in the 1990 Nicaraguan elections.      
  Honduras continues to participate in the UN observer mission in the Western 
  Sahara, contributed 370 troops for stabilization in Iraq, and remains       
  interested in participating in other UN peacekeeping missions.              
                                                                       
  The United States is Honduras' chief trading partner, with two-way trade in 
  goods increasing to over $7 billion in 2006. U.S.-Honduran trade is dominated
  by the Honduran maquila industry, which imports yarn and textiles from the  
  United States and exports finished articles of clothing. Other leading      
  Honduran exports to the United States include coffee, bananas, seafood      
  (particularly shrimp), minerals (including zinc, lead, gold, and silver), and
  other fruits and vegetables.                                                
                                                                       
  U.S. investors account for nearly two-thirds of the foreign direct investment
  (FDI) in Honduras. The stock of U.S. direct investment in Honduras in 2005  
  was $402 million, up from $339 million in 2004. The overall flow of FDI into
  Honduras in 2005 totaled $568 million, $196 million of which was spent in the
  maquila sector. The United States continued as the largest contributor of   
  FDI. The most substantial U.S. investments in Honduras are in the maquila   
  sector, fruit production (particularly bananas, melons, and pineapple),     
  tourism, energy generation, shrimp aquaculture, animal feed production,     
  telecommunications, fuel distribution, cigar manufacturing, insurance,      
  brewing, leasing, food processing, and furniture manufacturing. Many U.S.   
  franchises, particularly in the restaurant sector, operate in Honduras.     
                                                                       
  In 2004, the United States signed the U.S.-Central America Free Trade       
  Agreement (CAFTA) with Honduras, El Salvador, Nicaragua, Guatemala, Costa   
  Rica, and the Dominican Republic. The legislatures of all signatories except
  Costa Rica ratified CAFTA in 2005, and the agreement entered into force in  
  the first half of 2006. CAFTA eliminates tariffs and other barriers to trade
  in goods, services, agricultural products, and investments. Additionally,   
  CAFTA is expected to solidify democracy, encourage greater regional         
  integration, and provide safeguards for environmental protection and labor  
  rights.                                                                     
                                                                       
  In June 2005, Honduras became the first country in the hemisphere to sign a 
  Millennium Challenge Account (MCA) compact with the US Government. Under the
  compact, the U.S. Millennium Challenge Corporation will invest $215 million 
  over five years to help Honduras improve its road infrastructure, diversify 
  its agriculture, and get its products to market.                            
                                                                       
  The United States maintains a small presence at a Honduran military base; the
  two countries conduct joint peacekeeping, counternarcotics, humanitarian,   
  disaster relief, and civic action exercises. U.S. troops conduct and provide
  logistics support for a variety of bilateral and multilateral               
  exercises--medical, engineering, peacekeeping, counternarcotics, and disaster
  relief--for the benefit of the Honduran people and their Central American   
  neighbors. U.S. forces--regular, reserve, and National Guard--benefit greatly
  from these exercises.                                                       
                                                                       
  U.S. Policy Toward Honduras                                                 
  U.S. policy toward Honduras is aimed at consolidating democracy, protecting 
  human rights, and promoting the rule of law. U.S. Government programs are   
  aimed at promoting a healthy and more open economy capable of sustainable   
  growth, improving the climate for business and investment while protecting  
  U.S. citizen and corporate rights, and promoting the well-being of the      
  Honduran people. The United States also works with Honduras to meet         
  transnational challenges--including the fight against terrorism, narcotics  
  trafficking, money laundering, illegal migration, and trafficking in        
  persons--and encourages and supports Honduran efforts to protect the        
  environment. The goals of strengthening democracy and promoting viable      
  economic growth are especially important given the geographical proximity of
  Honduras to the United States. Approximately 800,000 to 1 million Hondurans 
  reside in the United States; consequently, immigration issues are an        
  important item on our bilateral agenda.                                     
                                                                       
  U.S.-Honduran ties are further strengthened by numerous private sector      
  contacts, with an average of between 80,000 and 110,000 U.S. citizens       
  visiting Honduras annually and about 15,000 Americans residing there. More  
  than 150 American companies operate in Honduras.                            
                                                                       
  Economic and Development Assistance                                         
  In order to help strengthen Honduras' democratic institutions and improve   
  living conditions, the United States has provided substantial economic      
  assistance. The United States has historically been the largest bilateral   
  donor to Honduras. The USAID budget for Honduras is $37 million for fiscal  
  year 2007. Over the years, U.S. foreign assistance has helped advance such  
  objectives as fostering democratic institutions, increasing private sector  
  employment and income, helping Honduras manage its arrears with international
  financial institutions, providing humanitarian aid, increasing agricultural 
  production, and providing loans to microbusinesses.                         
                                                                       
  1998's Hurricane Mitch left hundreds of thousands homeless, devastated the  
  road network and other public infrastructure, and crippled certain key      
  sectors of the economy. Estimates show that Hurricane Mitch caused $8.5     
  billion in damages to homes, hospitals, schools, roads, farms, and businesses
  throughout Central America, including more than $3 billion in Honduras alone.
  In response, the United States provided more than $461 million in immediate 
  disaster relief and humanitarian aid spread over the years 1998-2001. This  
  supplemental assistance was designed to help repair water and sanitation    
  systems; replace housing, schools, and roads; provide agricultural inputs;  
  provide local government crisis management training; grant debt relief; and 
  encourage environmental management expertise. Additional resources were     
  utilized to maintain anti-crime and drug assistance programs.               
                                                                       
  In 2001, the United States also provided food aid in response to a short    
  drought and the depressed state of the agriculture sector. Subsequently, the
  United States provided $265,000 in disaster assistance after Tropical Storm 
  Michelle inundated the north coast with floods. Most recently, the United   
  States provided assistance for Honduras' recovery from 2005's devastating   
  storms, including Hurricane Beta and Tropical Storm Gamma.                  
                                                                       
  The Peace Corps has been active in Honduras since 1962, and currently the   
  program is one of the largest in the world. In 2005, there were 220 Peace   
  Corps Volunteers working in the poorest parts of Honduras.                  
                                                                       
  The U.S. Government strongly supports the professionalization of the civilian
  police force as an important element in strengthening the rule of law in    
  Honduras. The American Embassy in Tegucigalpa provides specialized training 
  to police officers.                                                         
                                                                       
  Security Assistance                                                         
  The role of the Honduran armed forces has changed significantly in recent   
  years as many institutions formerly controlled by the military are now under
  civilian authority. The annual defense and police budgets have hovered at   
  around $35 million during the past few years. Honduras receives modest U.S. 
  security assistance funds and training.                                     
                                                                       
  In the absence of a large security assistance program, defense cooperation  
  has taken the form of increased participation by the Honduran armed forces in
  military-to-military contact programs and bilateral and multilateral combined
  exercises oriented toward peacekeeping, disaster relief, humanitarian/civic 
  assistance, and counternarcotics. The U.S. Joint Task Force Bravo (JTF-B),  
  stationed at the Honduran Soto Cano Air Base, plays a vital role in         
  supporting combined exercises in Honduras and in neighboring Central American
  countries. JTF-Bravo plays a critical role in helping the United States     
  respond to natural disasters in Central America by serving as a platform for
  rescue missions, repairing critical infrastructure, and in meeting high     
  priority health and sanitation needs. JTF-Bravo forces have helped deliver  
  millions of dollars worth of privately donated goods to those in need.      
                                                                       
  U.S. Business Opportunities                                                 
  Bilateral trade between the two nations totaled $7.4 billion in 2006, up from
  $7 billion in 2005. Exports of goods and services from the U.S. increased   
  from $3.24 billion in 2005 to $3.69 billion in 2006, while Honduran exports 
  to the U.S. fell slightly from $3.75 billion in 2005 to $3.72 billion in 2006
  More than 150 American companies operate in Honduras; U.S. franchises are   
  present in increasing numbers.                                              
                                                                       
  Opportunities for U.S. business sales include textile machinery, construction
  equipment, automotive parts and accessories, telecommunications equipment,  
  pollution control/water resources equipment, agricultural machinery, hotel  
  and restaurant equipment, computers and software, franchising, and household
  consumer goods. The best prospects for agricultural products are corn, milled
  rice, wheat, soybean meal, and consumer-ready products.                     
                                                                       
  U.S. citizens contemplating investment in real estate in Honduras should    
  proceed with extreme caution, especially in the Bay Islands or coastal areas,
  because of frequently conflicting legislation, problems with land titles, and
  a weak judicial system. Investors or their attorneys should check property  
  titles not only with the property registry office having jurisdiction in the
  area in which the property is located (being especially observant of marginal
  annotations on the deed and that the property is located within the area    
  covered by the original title), but also with the National Agrarian Institute
  (INA) and the National Forestry Administration (COHDEFOR). Investors in land
  should be aware that even clear title is not a guarantee that a future      
  dispute over land would be resolved equitably.                              
                                                                       
  Principal U.S. Embassy Officials                                            
  Ambassador--Charles A. Ford                                                 
  Deputy Chief of Mission--Jim Williard                                       
  Political Counselor--Frank Penirian (Acting)                                
  Economic Counselor--Martin Healy (Acting)                                   
  Consul General--Rachel Schofer (Acting)                                     
  Management Counselor--Jesse Coronado                                        
  USAID Director--Harry Birnholz                                              
  Public Affairs Officer--Chantal Dalton                                      
  Defense Attache--COL Derek Dickey                                           
  Military Group Commander--COL Jeffrey Moragne                               
  Peace Corps Director--Trudy Jaycox                                          
                                                                       
  The U.S. Embassy in Honduras is located on Avenida La Paz, Tegucigalpa (tel.:
  011-504-236-9320; faxes: general--011-504-236-9037, USAID--011-504-236-7776,
  Consulate--011-504-237-1792). Internet: http://honduras.usembassy.gov/english
  /index_e1.htm                                                               
                                                                       
  Contact Information                                                         
  American Chamber of Commerce                                                
  Hotel Honduras Maya                                                         
  Apartado Postal 1838                                                        
  Tegucigalpa, Honduras                                                       
  Tel: (504) 232-7043/232-6035                                                
  Fax: (504) 232-9959                                                         
  Branch office in San Pedro Sula                                             
  Tel: (504) 557-6402/559-6412                                                
  Fax: (504) 557-6402                                                         
                                                                       
  U.S. Department of Commerce                                                 
  International Trade Administration                                          
  Office of Latin America and the Caribbean                                   
  14th and Constitution Avenue, NW                                            
  Washington, DC 20230                                                        
  Tel: 202-482-0057                                                           
  800-USA-TRADE                                                               
  Fax: 202-482-0464                                                           
  Internet: http://trade.gov                                                  
                                                                       
  U.S. Agency for International Development                                   
  1300 Pennsylvania Avenue, NW                                                
  Washington, DC 20523-0001                                                   
  Tel: 202-712-4810                                                           
  Fax: 202-216-3524                                                           
  Internet: www.usaid.gov                                                     
                                                                       
  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.   

 

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