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b. Forestry

Extensive forests, a major national resource, largely privately owned and efficiently managed; woodpulp the major forest product; much of pulp and paper output exported.

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c. Fisheries

Relative unimportance of fishing; declining catches; higher per capita fish consumption; large imports; government support of the industry.

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3. Fuels and power 11
a. Petroleum and natural gas

No petroleum or natural gas resources; heavy dependence on oil imports; small refining industry; oil exploration; mineral consumption of natural gas.

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b. Electric power

Heavy dependence on hydroelectric power; shift to greater dependence on thermal (nuclear) power anticipated; extensive north-south transmission system

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c. Coal

Small known reserves of low-grade bituminous; output low, imports high

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d. Nuclear power

To supply half of electric power by 1985; problems of development.

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4. Minerals and metals

High-grade resources—basis for industry and a major export lead, zinc, white arsenic, sulfur powder, tungsten, precious metals, copper, imported ores, major ore concentrations in inhospitable north; metal processing industries in the south; extent of government ownership of mines.

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a. Iron, steel, and ferroalloys

A major world producer of iron ore; ores from large northern mines largely exported; efficient, mechanized mining; steel industry small but well developed; importance of ferroalloy industry.

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b. Nonferrous metals

Resources and production; importance of imports.

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5. Manufacturing

Highly sophisticated sector based on domestic iron ore, forest resources, and electric power; orientation towards foreign markets.

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a. Machinery and equipment

High quality; broad range of specialty products; major export items.

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b. Transportation equipment

Diversified output; major producer of motor vehicles; second-ranking shipbuilding nation; production of railroad motion power and rolling stock; military transport equipment.

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c. Chemicals

Deficiencies in production; rapid expansion in production of organic chemicals.

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d. Food processing

Self-sufficiency; exports of selected items; meat and dairy products; prominent role of cooperatives; increased industrialization.

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e. Textiles

Domestic orientation; rationalization to counter foreign competition.

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6. Construction

Position in the economy; rationalization; housing.

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C. Economic policy

Strong government influence on the economy; close cooperation between government and labor; government support of private enterprise; liberal attitude towards foreign capital.

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1. Planning

Flexibility; setting of broad national goals.

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2. Implementation of policy

Use of monetary policy to promote stability; the goal of equalizing income distribution; social welfare and rising taxes.

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3. The budget

Deficits; fiscal restraint; role of taxes.

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D. Banking and commerce 28
1. Banking and monetary policy

Banking system; role of commercial banks; Scandinavian banking cooperation; central bank and specialized financial institutions; monetary policy.

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2. Domestic trade

Well-developed trade channels; private ownership.

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E. International economic relations

Foreign markets and Swedish economic development.

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1. Foreign trade

Composition; geographic distribution; regional trade groupings; trade with Communist countries; liberal commercial policy.

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2. Balance of payments

General weakening in late 1960's; effects of transitory conditions.

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3. Foreign aid

Generous goals; rising level of aid; changing direction.

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090018-7