OFFICIAL NAME:
People's Democratic Republic of Algeria

Geography
Location: Northern Africa, bordering the Mediterranean Sea, between Morocco and Tunisia.
Area: Total--2,381,740 sq. km. Land--2,381,740 sq. km.; water--0 sq. km. More than three times the size of Texas.
Cities: Capital--Algiers.
Terrain:
Mostly high plateau and desert; some mountains; narrow, discontinuous
coastal plain. Mountainous areas subject to severe earthquakes; mud
slides.
Climate: Arid to semiarid; mild, wet winters with hot, dry
summers along coast; drier with cold winters and hot summers on high
plateau; sirocco is a hot, dust/sand-laden wind especially common in
summer.
Land use: Arable land--3%; permanent crops--0%, permanent pastures--13%; forests and woodland--2%.

People
Nationality: Noun--Algerian(s); adjective--Algerian.
Population (July 2003 est.): 32,818,500.
Annual growth rate (2003 est.): 1.65%. Birth rate--21.94 births/1,000, population; death rate--5.09 deaths/1,000 population.
Ethnic groups: Arab-Berber 99%, European less than 1%.
Religions: Sunni Muslim (state religion) 99%, Christian and Jewish 1%.
Languages: Arabic (official), French, Berber dialects.
Education: Literacy (definition--age 15 and over can read and write)--total population, 70%; male 78.8%, female 61% (2003 est.)
Health (2003 est.): Infant mortality rate--37.74 deaths/1,000 live births. Life expectancy at birth--total population, 70.54 years; male 69.14 years, female 72.01 years.
Work force (2003): 9.5 million. Government--32%; agriculture--14%; construction and public works--10%; industry--13.4%; trade--14.6%, other--16%.
Unemployment rate (2004 est.): 30%.

Government
Type: Republic.
Independence: July 5, 1962 (from France).
Constitution: November 19, 1976; revised November 3, 1988, February 23, 1989, and November 28, 1996.
Branches:
Legal system based on French and Islamic law; judicial review of
legislative acts in ad hoc Constitutional Council composed of various
public officials, including several Supreme Court justices; has not
accepted compulsory ICJ jurisdiction.
Administrative divisions: 48 provinces (wilayates; singular, wilaya).
Suffrage: 18 years of age; universal.
National holiday: Revolution Day, November 1, 1954.

Economy
GDP (2004 est.): $64.3 billion.
GDP growth rate (2004 est.): 4.1%.
Per capita real GDP (2004 est.): $1,972.
Agriculture: Products--wheat, barley, oats, grapes, olives, citrus, fruits; sheep, cattle.
Industry: Types--petroleum,
natural gas, light industries, mining, electrical, petrochemical, food
processing, pharmaceuticals, cement, seawater desalination.
Trade: Exports—(2004 est.) $25 billion: petroleum, natural gas, and petroleum products 97%. Partners (2004 est.)--U.S.18.2%, Italy 16.1%, France 11.4%, Spain 4.7 Imports--$12.3 billion (f.o.b., 2003 est.): capital goods, food and beverages, consumer goods. Partners (2003 est.)--France 22.5%, U.S. 9.6%, Italy 9.5%, Germany 6.5%, Spain 5.2%, Turkey 4.1%, Canada 3.1%.
Budget (2004 est.): Revenues--$23.3 billion; expenditures--$22.2 billion, including capital expenditures of $7.8 billion.
Debt (external, 2004 est.): $19 billion.
U.S. economic assistance (2004 est.): $1.5 million (MEPI and IMET).
Fiscal year: Calendar year.

GEOGRAPHY
Algeria,
the second-largest state in Africa, has a Mediterranean coastline of
about 998 kilometers (620 mi.). The Tellian and Saharan Atlas mountain
ranges cross the country from east to west, dividing it into three
zones. Between the northern zone, Tellian Atlas, and the Mediterranean
is a narrow, fertile coastal plain--the Tell (Arabic for hill)--with a
moderate climate year round and rainfall adequate for agriculture. A
high plateau region, averaging 914 meters (3,000 ft.) above sea level,
with limited rainfall and great rocky plains and desert, lies between
the two mountain ranges. It is generally barren except for scattered
clumps of trees and intermittent bush and pastureland. The third and
largest zone, south of the Saharan Atlas range of mountains, is mostly
desert. About 80% of the country is desert, steppes, wasteland, and
mountains.

Algeria's weather is irregular from year
to year. In the north, the summers are usually hot with little
rainfall. Winter rains begin in the north in October. Frost and snow
are rare, except on the highest slopes of the Tellian Atlas Mountains.
Dust and sandstorms occur most frequently between February and May.

Soil erosion from overgrazing and other
poor farming practices; desertification; dumping of raw sewage,
petroleum refining wastes, and other industrial effluents are leading
to the pollution of rivers and coastal waters. The Mediterranean Sea,
in particular, is becoming polluted from oil wastes, soil erosion, and
fertilizer runoff; there are inadequate supplies of potable water.

PEOPLE
Ninety-one
percent of the Algerian population lives along the Mediterranean coast
on 12% of the country's total land mass. Forty-five percent of the
population is urban, and urbanization continues, despite government
efforts to discourage migration to the cities. About 1.5 million nomads
and semi-settled Bedouin still live in the Saharan area. According to
the National Office of Statistics (ONS) the data for the year 2002
indicate that 75% of the Algerian population is below 30.

Nearly all Algerians are Muslim, of
Arab, Berber, or mixed Arab-Berber stock. Official data on the number
of non-Muslim residents is not available, however practitioners report
it to be less than 5,000. Most of the non-Muslim community is comprised
of Methodist, Roman Catholic and Evangelical faiths; the Jewish
community is virtually non-existent. As of August 2004, there were
about 1100 American citizens in the country, the majority of whom live
and work in the oil/gas fields of the south.

Algeria's educational system has grown
dramatically since 1962; in the last 12 years, attendance has doubled
to more than 5 million students. Education is free and compulsory to
age 16. Despite government allocation of substantial educational
resources, population pressures and a serious shortage of teachers have
severely strained the system, as has terrorism attacks against the
educational infrastructure during the 1990s. Modest numbers of Algerian
students study abroad, primarily in Europe and Canada. In 2000, the
government launched a major review of the country's educational system
and in 2004 efforts to reform the educational system began.

Housing and medicine
continue to be pressing problems in Algeria. Failing infrastructure and
the continued influx of people from rural to urban areas has overtaxed
both systems. According to the UNDP, Algeria has one of the world's
highest per housing unit occupancy rates for housing, and government
officials have publicly stated that the country has an immediate
shortfall of 1.5 million housing units.

HISTORY
Since
the 5th century B.C., the indigenous tribes of northern Africa
(identified by the Romans as "Berbers") have been pushed back from the
coast by successive waves of Phoenician, Roman, Vandal, Byzantine,
Arab, Turkish, and, finally, French invaders. The greatest cultural
impact came from the Arab invasions of the 8th and 11th centuries A.D.,
which brought Islam and the Arabic language. The effects of the most
recent (French) occupation--French language and European-inspired
socialism--are still pervasive.

North African boundaries have shifted
during various stages of the conquests. Algeria's modern borders were
created by the French, whose colonization began in 1830. To benefit
French colonists, most of whom were farmers and businessmen, northern
Algeria was eventually organized into overseas departments of France,
with representatives in the French National Assembly. France controlled
the entire country, but the traditional Muslim population in the rural
areas remained separated from the modern economic infrastructure of the
European community.

Indigenous Algerians began their revolt
on November 1, 1954, to gain rights denied them under French rule. The
revolution, launched by a small group of nationalists who called
themselves the National Liberation Front (FLN), was a guerrilla war in
which both sides targeted civilians and otherwise used brutal tactics.
Eventually, protracted negotiations led to a cease-fire signed by
France and the FLN on March 18, 1962, at Evian, France. The Evian
accords also provided for continuing economic, financial, technical,
and cultural relations, along with interim administrative arrangements
until a referendum on self-determination could be held. Over 1 million
French citizens living in Algeria at the time, called the
"pieds-noirs," left Algeria for France.

The referendum was held in
Algeria on July 1, 1962, and France declared Algeria independent on
July 3. On September 8, 1963, a Constitution was adopted by referendum,
and later that month, Ahmed Ben Bella was formally elected president.
On June 19, 1965, President Ben Bella was replaced in a bloodless coup
by a Council of the Revolution headed by Minister of Defense Col.
Houari Boumediene. Ben Bella was first imprisoned and then exiled.
Boumediene, as President of the Council of the Revolution, led the
country as Head of State until he was formally elected on December 10,
1976. Boumediene is credited with building "modern Algeria." He died on
December 27, 1978.

Following nomination by an
FLN Party Congress, Col. Chadli Bendjedid was elected president in 1979
and re-elected in 1984 and 1988. A new constitution was adopted in 1989
that allowed the formation of political associations other than the
FLN. It also removed the armed forces, which had run the government
since the days of Boumediene, from a designated role in the operation
of the government. Among the scores of parties that sprang up under the
new constitution, the militant Islamic Salvation Front (FIS) was the
most successful, winning more than 50% of all votes cast in municipal
elections in June 1990 as well as in first stage of national
legislative elections held in December 1991.

Faced with the real
possibility of a sweeping FIS victory, the National People's Assembly
was dissolved by presidential decree on January 4,1992, and on January
11, under pressure of the military leadership, President Chadli
Bendjedid resigned. On January 14, a five-member High Council of State
was appointed by the High Council of Security to act as a collegiate
presidency and immediately canceled the second round of elections. This
action, coupled with political uncertainty and economic turmoil, led to
a violent reaction on the part of the Islamists. A campaign of terror
in the country, including assassinations, bombings, and massacres,
commenced. On January 16, Mohamed Boudiaf, a hero of the Liberation
War, returned after 28 years of exile to serve as Algeria's fourth
president. Facing sporadic outbreaks of violence and terrorism, the
security forces took control of the FIS offices, in early February, and
the High Council of State declared a state of emergency. In March,
following a court decision, the FIS Party was formally dissolved, and a
series of arrests and trials of FIS members occurred resulting in more
than 50,000 members being jailed. Algeria became caught in a cycle of
violence, which became increasingly random and indiscriminate. On June
29, 1992, President Boudiaf was assassinated in Annaba by Army Lt.
Lembarek Boumarafi, who allegedly confessed to carrying out the killing
on behalf of the Islamists.

Despite efforts to restore
the political process, violence and terrorism characterized the Algeria
landscape during the 1990s. In 1994, Liamine Zeroual, former Minister
of Defense, was appointed Head of State by the High Council of State
for a 3-year term. During this period, the Armed Islamic Group (GIA)
launched terrorist campaigns against government figures and
institutions to protest the banning of the Islamist parties. A
breakaway GIA group--the Salafist Group for Preaching and Combat
(GSPC)--also undertook terrorist activity in the country. Government
officials estimate that more than 100,000 Algerians died during this
period.

Zeroual called for
presidential elections in 1995, though some parties objected to holding
elections that excluded the FIS. Zeroual was elected president with 75%
of the vote. By 1997, in an attempt to bring political stability to the
nation, the Rassemblement National Democratique (RND) party was formed
by a progressive group of FLN members. In September 1998, President
Liamine Zeroual announced that he would step down in February 1999, 21
months before the end of his term, and that presidential elections
would be held.

Algerians went to the polls
in April 1999, following a campaign in which seven candidates qualified
for election. On the eve of the election, all candidates except
Abdelaziz Bouteflika pulled out amid charges of widespread electoral
fraud. Bouteflika, the candidate who appeared to enjoy the backing of
the military, as well as FLN and RND party regulars, won with an
official vote count of 70% of all votes cast. He was inaugurated on
April 27, 1999 for a 5-year term.

President Bouteflika's
agenda focused initially on restoring security and stability to the
country. Following his inauguration, he proposed an official amnesty
for those who fought against the government during the 1990s unless
they had engaged in "blood crimes," such as rape or murder. This "Civil
Concord" policy was widely approved in a nationwide referendum in
September 2000. Government officials estimate that 85% of those
fighting the regime during the 1990s have accepted the amnesty offer
and have been reintegrated into Algerian society. Bouteflika also has
launched national commissions to study education and judicial reform,
as well as restructuring of the state bureaucracy.

In 2001, Berber activists in the Kabylie
region of the country, reacting to the death of a youth in gendarme
custody, unleashed a resistance campaign against what they saw as
government repression. Strikes and demonstrations in the Kabylie region
were commonplace as a result, and some spread to the capital. Chief
among Berber demands is recognition of Tamazight (Berber) as a national
language, restitution for death of Kabylies killed or wounded in
demonstrations, and greater control over their own regional affairs. In
October 2001, the Tamazight language was recognized as a national
language but continues to be a matter of contention since it is still
not an "official language."

Algeria’s most recent presidential
election took place on April 8, 2004. For the first time since
independence, the presidential race was democratically contested
through to the end. Besides incumbent President Bouteflika, five other
candidates competed in the election. Opposition candidates complained
of some discrepancies in the voting list; irregularities on polling
day, particularly in the Kabylie; and of unfair media coverage during
the campaign as Bouteflika, by virtue of his office, appeared on
state-owned television daily. Bouteflika was re-elected in the first
round of the election with 84.99% of the vote. Just over 58% of those
Algerians eligible to vote participated in the election.

In the five years since
Bouteflika was first elected, the security situation in Algeria has
improved markedly. However, terrorism has not been totally eliminated,
and terrorist incidents still occur, particularly in the provinces of
Boumerdes, Tizi-Ouzou, and in the remote southern areas of the country.
An estimated 50-60 Algerians are killed monthly, down from a high of
1,200 or more in the mid-1990s.

GOVERNMENT
Under
the 1976 Constitution (as modified 1979, and amended in 1988, 1989, and
1996) Algeria is a multi-party state. The Ministry of the Interior must
approve all political parties. According to the Constitution, no
political association may be formed if it is "based on differences in
religion, language, race gender or region." The head of state is the
president of the republic, who is elected to a 5-year term, renewable
once. Algeria has universal suffrage at the age of 18. The president is
the head of the Council of Ministers and of the High Security Council.
He appoints the prime minister who also is the head of government. The
prime minister appoints the Council of Ministers.

The Algerian Parliament is
bicameral, consisting of a lower chamber, the National People's
Assembly (APN), with 389 members and an upper chamber, the Council of
the Nation, with 144 members. The APN is elected every 5 years. The
next round of legislative elections is scheduled to take place in 2007.
Two-thirds of the Council of the Nation is elected by regional and
municipal authorities; the rest are appointed by the president. The
Council of the Nation serves a 6-year term with one-half of the seats
up for election or reappointment every 3 years. The last round of
elections and appointments to the Council of Nations occurred in 2003.
Either the president or one of the parliamentary chambers may initiate
legislation. Legislation must be brought before both chambers before it
becomes law. Sessions of the APN are televised.

Algeria is divided into 48
wilayates (states or provinces) headed by walis (governors) who report
to the Minister of Interior. Each wilaya is further divided into
communes. The wilayates and communes are each governed by an elected
assembly.

Principal Government Officials
President and Minister of National Defense--Abdelaziz Bouteflika
Prime Minister--Ahmed Ouyahia

Other Ministers
Agriculture and Rural Development--Barkat, Said
Commerce--Boukrouh, Noureddine
Communication--Haichour, Boudjemaa
Culture--Toumi, Khalida
Energy and Mines--Khelil, Chakib
Environment--Rahmani, Cherif
Finance--Benachenhou, Abdelatif
Fisheries and Sea Resources--Mimoune, Smail
Foreign Affairs--Belkhadem, Abdelaziz
Health, Population and Hospital Reform--Redjimi, Mourad
Higher Education and Scientific Research--Harraoubia, Rachid
Housing & Town Planning--Hamimid, Mohamed Nadir
Industry--Djaaboub, El-Hachemi
Posts, Information and Communications Technologies--Tou, Amar
Interior--Zerhouni, Nourredine Yazid
Justice--Belaiz, Tayeb
Labor and Social Security--Louh, Tayeb
Moudjhidine (Veterans)--Abbas, Mohamed Cherif
National Education--Benbouzid, Boubekeur
Vocational Training--Khaldi, El Hadi
Public Works--Ghoul, Amar
Minister in Charge of Relations With the Parliament--Khoudri, Mahmoud
Religious Affairs--Goulamallah, Bouabdellah
Small and Medium-Sized Industries--Benabada, Mustapha
Tourism--Kara, Mohamed Seghir
Transport--Maghlaoui, Mohamed
Water Resource--Sellal, Abdelmalek
Youth and Sports--Ziari, Abdelaziz

Ministers Delegate
Minister Delegate in Charge of Maghrebian and African Affairs--Messahel, Abdelkader
Minister Delegate in Charge of the Family and Women's Affairs--Djaafar, Nouara Saadia
Minister Delegate in Charge of Financial Reform--Djoudi, Karim
Minister Delegate in Charge of Local Collectives--Kablia, Daho Ould
Minister Delegate in Charge of National Community Abroad--Messadi, Sakina
Minister Delegate in Charge of Rural Development--Benaissa, Rachid
Minister Delegate in Charge of Scientific Research--Bendjaballah, Souad
Minister Delegate in Charge of Town Planning & Environment--Boukerzaza, Abderrachid
Minister Delegate in Charge of Participation & Investment Promotion--Hamlaoui, Yahia
Secretary General of the Government--Noui, Ahmed
Speaker of the National People's Assembly (Lower House)--Saidani, Amar
Speaker of the Council of Nations (Upper House)--Bensalah, Abdelkader
Governor, Central Bank--Laksaci, Mohamed

Ambassador to the United States--vacant
Permanent Representative to the UN, New York--Baali, Abdallah

POLITICAL CONDITIONS
A
decade of terrorist violence in Algeria has resulted in more than
100,000 deaths since 1991. Although the security situation in the
country has improved, addressing the underlying issues, which brought
about the political turmoil of the 1990s, remains the government's
major task. In keeping with its amended Constitution, the Algerian
Government espouses participatory democracy and free-market
competition. The government has stated that it will continue to open
the political process and encourage the creation of political
institutions. Presidential elections took place in April 2004 and
returned President Bouteflika to office with 84.99% of the vote.

Algeria has more than 30
daily newspapers published in French and Arabic, with a total
publication run of more than 1.5 million copies. In 2001, the
government amended the penal code provisions relating to defamation and
slander, a step widely viewed as an effort to rein in the press. While
the Algerian press is relatively free to write as they choose, use of
the defamation laws significantly increased the level of press
harassment following President Bouteflika’s April 2004 re-election
victory. As a result, the press has begun to self-censor. Government
monopoly of newsprint and advertising is seen as another means to
influence the press, although it has permitted newspapers to create
their own printing distribution networks.

Population growth and
associated problems--unemployment and underemployment, inability of
social services to keep pace with rapid urban migration, inadequate
industrial management and productivity, a decaying
infrastructure--continue to plague Algerian society. Increases in the
production and prices of oil and gas over the past decade have led to
exchange reserves of $34 billion, forecast to be $46 billion by the end
of 2004. The government began an economic reform program in 1994, which
focuses on macroeconomic stability and structural reform. These reforms
are aimed at liberalizing the economy, making Algeria competitive in
the global market, and meeting the needs of the Algerian people.

ECONOMY
The
hydrocarbons sector is the backbone of the Algerian economy, accounting
for roughly 60% of budget revenues, nearly 30% of GDP, and over 95% of
export earnings. Algeria has the seventh-largest reserves of natural
gas in the world (2.7% of proven world total) and is the second-largest
gas exporter; it ranks 14th for oil reserves. Its key oil and gas
customers are Italy, Germany, France, Netherlands, Spain, the United
Kingdom, and the United States. U.S. companies have played a major role
in developing Algeria's oil and gas sector; of the $4.1 billion (on a
historical-cost basis, according to statistics gathered by the U.S.
Department of Commerce, Bureau of Economic Analysis) in U.S. investment
in Algeria, the vast bulk is in the petroleum sector.

Faced with declining oil
revenues and high-debt interest payments at the beginning of the 1990s,
Algeria implemented a stringent macroeconomic stabilization program and
rescheduled its Paris Club debt in the mid-1990s. The macroeconomic
program has been particularly successful in reducing inflation from
averages of near 30% in the mid 1990s to 2% in 2003, and in narrowing
the budget deficit. Algeria's economy has grown at about 2-4% annually
since 1999 and reached growth of over 6% in 2003. The country's foreign
debt has fallen from a high of $28 billion in 1999 to an estimated $19
billion in 2004. The spike in oil prices in 1999-2000 and 2004, the
government's tight fiscal policy and conservative budgeting of oil
prices from 2000 to present, as well as a large increase in the trade
surplus and the near tripling of foreign exchange reserves has helped
the country's finances. The government pledges to continue its efforts
to diversify the economy by attracting foreign and domestic investment
outside the energy sector. However, it has thus far had little success
in reducing high unemployment, officially estimated at 30%, and
improving living standards.

Priority areas are banking
and judicial reform, improving the investment environment, partial or
complete privatization of state enterprises, and reducing government
bureaucracy. The government has sold off numerous state enterprises and
more are expected to be up for offer. The government also has begun to
privatize certain sectors of the economy and embrace joint venture
investment opportunities with traditionally state owned and operated
entities. In 2001, Algeria signed an Association Agreement with the
European Union. The government is in an advanced stage of accession
negotiations with the World Trade Organization.

DEFENSE
Algeria's
armed forces, known collectively as the Popular National Army (ANP),
total 119,000 active members, with some 100,000 reservists. The
president serves as Minister of National Defense. Military forces are
supplemented by a 45,000-member gendarmerie, a rural police force,
under the control of the president and a 30,000-member Sureté National
or Metropolitan police force under the Ministry of the Interior. Two
years of national military service is compulsory for males.

Algeria is a leading
military power in the region and has demonstrated remarkable success in
its struggle against terrorism. The Algerian military, having fought a
decade-long insurgency, intends to increase expenditures in an effort
to modernize and return to a more traditional defense role. Projected
defense expenditures accounted for some $2.5 billion or 3.9% of GDP (FY
2004).

Due to difficulties in
acquiring U.S. military equipment, Algeria’s primary military supplier
has been Russia, and to a lesser extent China. Algeria has, however, in
recent years, begun to diversify its supplies of military equipment to
include U.S.-made airborne surveillance aircraft and ground radars. In
June 2004, the U.S. and Algeria agreed to establish a formal military
dialogue.

FOREIGN RELATIONS
Algeria
has traditionally practiced an activist foreign policy and in the 1960s
and 1970s was noted for its support of Third World policies and
independence movements. Algerian diplomacy was instrumental in
obtaining the release of U.S. hostages from Iran in 1980. Since his
first election in 1999, President Bouteflika worked to restore
Algeria's international reputation, traveling extensively throughout
the world. In July 2001, he became the first Algerian President to
visit the White House in 16 years. He has made official visits to
France, South Africa, Italy, Spain, Germany, China, Japan, and Russia,
among others, since his inauguration.

Algeria has taken the lead
in working on issues related to the African Continent. Host of the OAU
Conference in 2000, Algeria also was key in bringing Ethiopia and
Eritrea to the peace table in 2000. It has worked closely with its
African neighbors to establish the New African Partnership. Algeria has
taken a lead in reviving the Union of the Arab Maghreb with its
neighbors.

Since 1976, Algeria has
supported the Polisario, a group claiming to represent the population
of Western Sahara. Contending that Sahrawi have a right to
self-determination under the UN Charter, Algeria has provided the
Polisario with material, financial, and political support and sanctuary
in southwestern Algeria around Tindouf. UN involvement in the Western
Sahara includes MINURSO, a peacekeeping force, and UNHCR, for refugee
assistance and resettlement. Active diplomatic efforts to resolve the
dispute under the auspices of the Special Representative of the
Secretary General are ongoing. Although the land border between Morocco
and Algeria was closed in the wake of a terrorist attack, the two have
worked at improving relations, and in July 2004, Morocco lifted visa
requirements for Algerians. Algeria has friendly relations with its
other neighbors in the Mahgreb, Tunisia and Libya, and with its
sub-Saharan neighbors, Mali and Niger. It closely monitors developments
in the Middle East and has been a strong proponent of the rights of the
Palestinian people, calling publicly for an end to violence in the
Occupied Territories.

Algeria has diplomatic
relations with more than 100 foreign countries, and over 90 countries
maintain diplomatic representation in Algiers. Algeria holds a
nonpermanent, rotating seat on the UN Security Council. Its tenure
began January 2004 and ends December 2005.

U.S.-ALGERIAN RELATIONS
In
July 2001, President Bouteflika became the first Algerian President to
visit the White House since 1985. This visit, followed by a second
meeting in November 2001, a meeting in New York in September 2003, and
President Bouteflika’s participation at the June 2004 G8 Sea-Island
Summit, is indicative of the growing relationship between the United
States and Algeria. Since the September 11, 2001 terrorist attacks in
the United States, contacts in key areas of mutual concern, including
law enforcement and counter-terrorism cooperation, have intensified.
Algeria publicly condemned the terrorist attacks on the United States
and has been strongly supportive of the international war against
terrorism. The United States and Algeria consult closely on key
international and regional issues. The pace and scope of senior-level
visits has accelerated. In June 2003, Under Secretary of State Marc
Grossman traveled to Algeria, followed by the October 2003 and May 2004
visits of Assistant Secretary of State for Near Eastern Affairs,
William Burns. Secretary of State Colin Powell visited Algiers in
December 2003.

In 2004, U.S. direct
investment in Algeria totaled $4.1 billion, mostly in the petroleum
sector, which U.S. companies dominate. American companies also are
active in banking and finance, services, pharmaceuticals, medical
facilities, telecommunications, aviation, and information technology
sectors. Algeria is the United States' 10th-largest market in the
Middle East/North African region. U.S. exports to Algeria totaled $487
million in 2003, a decrease of almost 50% over 2002. Imports nearly
doubled over the same period, from $2.4 billion in 2002 to $4.7 billion
in 2003. Algeria exports over $2.6 billion (2003) of petroleum products
and LNG to the United States, primarily to New England. In March 2004,
President Bush designated Algeria a beneficiary country for duty-free
treatment under the Generalized System of Preferences (GSP).

In July 2001, the United
States and Algeria signed a Trade and Investment Framework Agreement,
which establishes common principles on which the economic relationship
is founded. On an ongoing basis the two governments meet to discuss
trade and investment policies and opportunities to enhance the economic
relationship. The Export-Import Bank has an active guarantee program in
Algeria; current exposure is about $1.8 billion, primarily for
petroleum projects and aircraft acquisition. Within the framework of
the U.S.-North African Economic Partnership (USNAEP), the United States
provided about $1.0 million in technical assistance to Algeria in 2003.
This program supports and encourages Algeria's economic reform program
and includes support for World Trade Organization accession
negotiations, debt management, and improving the investment climate. In
2003, USNAEP programs were rolled over into Middle East Partnership
Initiative (MEPI) activities. In addition, the U.S. Department of
Agriculture has provided Algeria with a GSM 102 program valued at $50
million for the purchase of U.S. agricultural products.

The United States has a
small, but growing ($550,000 per year) International Military Education
and Training (IMET) Program for training Algerian military personnel in
the United States. Algeria received $200,000 in 2004 to participate in
the Department of Defense’s Regional Country Terror Fellowship Program.
Contacts between the Algerian and U.S. militaries have accelerated in
the past several years: Algeria has hosted U.S. naval ship visits and
has begun a series of joint naval exercises. Staff exchanges between
the two sides are frequent and Algeria has hosted senior U.S. military
officials.

The United States has
implemented modest university linkages programs and has placed two
English Language Fellows, the first since 1993, with the Ministry of
Education to assist in the development of ESL courses at the Ben
Aknoune Training Center. In 2004, Algeria was again the recipient of a
grant under the Ambassadors' Fund for Cultural Preservation. That fund
provided a grant of $39,000 to restore the Basilica of St. Augustine in
Annaba. Algeria also received an $80,000 grant to fund
microscholarships to design and implement an American English-language
program for Algerian high school students in four major cities.

Initial funding through the Middle East Partnership Initiative (MEPI)
has been allocated to support the work of Algeria's developing civil
society through programming that provides training to journalists,
businesspersons, and the heads of leading nongovernmental
organizations. Additional funding through the State Department's Human
Rights and Democracy Fund will assist civil society groups focusing on
the issues of the disappeared, and Islam and democracy.

The official U.S. presence in Algeria
remains limited, due in large part to reductions in staff during the
mid-1990s in response to a deteriorating security environment. During
the past 2 years, the embassy has moved toward more normal operations
and now provides most embassy services to the American and Algerian
communities.

Principal U.S. Officials
Ambassador--Richard W. Erdman
Deputy Chief of Mission--Marc J. Sievers
Political/Economic Chief--John M. Underriner
Economic/Commercial Officer--Michael E. Pignatello
Foreign Commercial Officer (resident in Casablanca)--Gail Del Rosal
Foreign Agriculture Service Officer (resident in Rabat)--Mike Fay
Consular Officer--Kristin Bongiovanni
Management Officer--Hugues Ogier
Public Affairs Officer--Linda Cowher
Defense Attaché--Lt. Col. John Hannen, USAF
Regional Security Officer--John C. Picardy

The U.S. Embassy is located at 4 Chemin Cheikh Bachir El-Ibrahimi, Algiers; tel. 213 (21) 691255; fax: 213 (21) 693979.

TRAVEL AND BUSINESS INFORMATION
The
U.S. Department of State's Consular Information Program provides
Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
information on entry requirements, currency regulations, health
conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Public Announcements
are issued as a means to disseminate information quickly about
terrorist threats and other relatively short-term conditions overseas
that pose significant risks to the security of American travelers. Free
copies of this information are available by calling the Bureau of
Consular Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings also are
available on the Consular Affairs Internet home page: http://travel.state.gov.
Consular Affairs Tips for Travelers publication series, which contain
information on obtaining passports and planning a safe trip abroad, are
on the Internet and hard copies can be purchased from the
Superintendent of Documents, U.S. Government Printing Office,
telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning
Americans traveling abroad may be obtained from the Office of Overseas
Citizens Services at (202) 647-5225. For after-hours emergencies,
Sundays and holidays, call 202-647-4000.

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, 8:00 a.m. to 8:00 p.m., 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.

Information on travel conditions, visa
requirements, currency and customs regulations, legal holidays, and
other items of interest to travelers also may be obtained before your
departure from a country's embassy and/or consulates in the U.S. (for
this country, see "Principal Government Officials" listing in this
publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register their travel via the State Department’s travel registration web site at https://travelregistration.state.gov
or at the Consular section of the U.S. embassy upon arrival in a
country by filling out a short form and sending in a copy of their
passports. This may help family members contact you in case of an
emergency.


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