HONDURAS

Republic of Honduras
República de Honduras

CAPITAL: Tegucigalpa

FLAG: The national flag consists of a white horizontal stripe between two blue horizontal stripes, with five blue stars on the white stripe representing the five members of the former union of Central American provinces.

ANTHEM: Himno Nacional, beginning "Tu bandera es un lampo de cielo" ("Thy flag is a heavenly light").

MONETARY UNIT: The lempira (l), also known as the peso, is a paper currency of 100 centavos. There are coins of 1, 2, 5, 10, 20, and 50 centavos, and notes of 1, 2, 5, 10, 20, 50, and 100 lempiras. l1 = $0.05285 (or $1 = l18.92) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard; some old Spanish measures are still used.

HOLIDAYS: New Year's Day, 1 January; Day of the Americas, 14 April; Labor Day, 1 May; Independence Day, 15 September; Birthday of Francisco Morazán, 3 October; Columbus Day, 12 October; Army Day, 21 October; Christmas, 25 December. Movable religious holidays include Holy Thursday, Good Friday, and Holy Saturday.

TIME: 6 am = noon GMT.

LOCATION, SIZE, AND EXTENT

Situated in Central America, Honduras has a total area of 112,090 sq km (43,278 sq mi), with a length of 663 km (412 mi) ene–wsw and 317 km (197 mi) nnw–sse. Comparatively, the area occupied by Honduras is slightly larger than the state of Tennessee. It is bounded on the n and e by the Caribbean Sea, on the s by Nicaragua and the Gulf of Fonseca, on the sw by El Salvador, and on the w by Guatemala, with a total boundary length of 2,340 km (1,454 mi), of which 820 km (509 mi) is coastline.

Under the terms of an arbitration award made by Alfonso XIII of Spain in 1906, Honduras received a portion of the Mosquito (Miskito) Coast, or La Mosquitia, north and west of the Coco (Segovia) River. Citing Honduras's failure to integrate the territory, Nicaragua renewed its claim to the entire Mosquito Coast in the 1950s and brought the case to the International Court of Justice (ICJ). In February 1957, Honduras created the new Department of Gracias a Dios, made up of the former Mosquitia territory. The ICJ determined in 1960 that Nicaragua was obligated to accept the 1906 arbitration ruling concerning that country's boundary with Honduras. The judges ruled, by a vote of 14–1, that once a valid arbitration award was made in an international dispute, it became effective, and remained so, despite any lapse of time in carrying it out.

The two tiny Swan Islands (Islas del Cisne), lying at 17°23′ n and 83°56′ w in the west Caribbean Sea some 177 km (110 mi) nne of Patuca Point, were officially ceded by the United States to Honduras on 20 November 1971. For administrative purposes, they are included under the Department of Islas de la Bahía, whose capital is Roatán on Roatán Island. The Swan Islands had been effectively held by the United States, which asserted a claim in 1863 to exploit guano, and had housed a weather station and an aviation post.

The capital city of Honduras, Tegucigalpa, is located in the south central part of the country.

TOPOGRAPHY

Honduras is mountainous, with the exception of the northern Ulúa and Aguán river valleys on the Caribbean Sea and the southern coastal area. There are four main topographic regions: the eastern lowlands and lower mountain slopes, with 20% of the land area and no more than 5% of the population; the northern coastal plains and mountain slopes, with 13% of the land and about 20% of the population; the central highlands, with 65% of the area and 70% of the population; and the Pacific lowlands and their adjacent lower mountain slopes, with 2% of the area and 5% of the population.

The width of the Caribbean coastal plain varies from practically no shore to about 120 km (75 mi), and the coastal plain of the Gulf of Fonseca is generally narrow. The highest elevations are in the northwest (almost 3,000 m/10,000 ft) and in the south (over 2,400 m/8,000 ft). Many intermontane valleys, at elevations of 910 to 1,370 m (3,000 to 4,500 ft), are settled. The old capital city, Comayagua, lies in a deep rift that cuts the country from north to south. Tegucigalpa, the modern capital, is situated in the southern high-lands at about 910 m (3,000 ft). There are two large rivers in the north, the Patuca and the Ulúa. Other important features include the Choluteca, Nacaome, and Goascorán rivers in the south, Lake Yojoa in the west, and Caratasca Lagoon in the northeast.

CLIMATE

The northern Caribbean area and the southern coastal plain have a wet, tropical climate, but the interior is drier and cooler. Temperature varies with altitude. The coastal lowlands average 31°c (88°f); from 300 to 760 m (1,000 to 2,500 ft) above sea level the average is 29°c (84°f); and above 760 m (2,500 ft) the average temperature is 23°c (73°f). There are two seasons: a rainy period, from May through October, and a dry season, from November through April. Average annual rainfall varies from over 240 cm (95 in) along the northern coast to about 84 cm (33 in) around Tegucigalpa in the south. The northwest coast is vulnerable to hurricanes, of which the most destructive, Hurricane Fifi in September 1974, claimed some 12,000 lives, caused $200 million in property damage, and devastated the banana plantations.

FLORA AND FAUNA

Honduras has a rich and varied flora and fauna. Tropical trees, ferns, moss, and orchids abound, especially in the rain forest areas. Mammal life includes the anteater, armadillo, coyote, deer, fox, peccary, pocket gopher, porcupine, puma, tapir, and monkeys in several varieties. Fish and turtles are numerous in both fresh water and marine varieties. Among the reptiles are the bushmaster, coral snake, fer-de-lance, horned viper, rattlesnake, and whip snake, caiman, crocodile, and iguana. Birds include the black robin, hummingbird, macaw, nightingale, thrush, partridge, quail, quetzal, toucanet, wren, and many others. As of 2002, there were at least 173 species of mammals, 232 species of birds, and over 5,600 species of plants throughout the country.

ENVIRONMENT

The major environmental problems are soil erosion and loss of soil fertility (in part because of traditional slash-and-burn cultivation) and rapid depletion of forests for lumber, firewood, and land cultivation. From 1990–95, the annual rate of deforestation was at about 2.34%. In 2000, about 48% of the total land area was forested.

Enforcement of antipollution laws has been weak, and Honduras also lacks an integrated economic development and land-use policy. Rivers and streams in Honduras are threatened by pollution from mining chemicals. The nation has 96 cu km of renewable water resources with 91% used in farming activities. About 99% of city dwellers and 82% of people living in rural areas have access to pure drinking water. Air pollution results from a lack of pollution control equipment for industries and automobiles. The Secretariat of Planning, Coordination, and Budget (Secretaría de Planificación, Coordinación, y Presupuesto—SECPLAN), the Ministry of Natural Resources, and several other agencies are vested with environmental responsibilities.

In 2003, 6.4% of the total land area in Honduras was protected. The Río Plátano Biosphere Reserve is a natural UNESCO World Heritage Site and there are six Ramsar wetland sites. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 10 types of mammals, 6 species of birds, 10 types of reptiles, 53 species of amphibians, 14 species of fish, 2 species of invertebrates, and 111 species of plants. Endangered or extinct species in Honduras included the tundra peregrine falcon, jaguar, three species of turtle (green sea, hawksbill, and olive ridley), and three species of crocodile (spectacled caiman, American, and Morelet's). The Caribbean monk seal, the Lago Yojoa palm, and the Swan Island hutia have become extinct.

POPULATION

The population of Honduras in 2005 was estimated by the United Nations (UN) at 7,212,000, which placed it at number 96 in population among the 193 nations of the world. In 2005, approximately 4% of the population was over 65 years of age, with another 41% of the population under 15 years of age. There were 102 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 2.8%, a rate the government viewed as too high. Of particular concern was the high rate of adolescent pregnancy, with 50% of the population under 19 years of age. The projected population for the year 2025 was 10,700,000. The population density was 64 per sq km (167 per sq mi), with the majority of the population living in the western portion of the country.

The UN estimated that 47% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 2.99%. The capital city, Tegucigalpa, had a population of 1,007,000 in that year. San Pedro Sula, the second-largest city, had an estimated population of 486,000; La Ceiba, 250,000; and El Progreso, 115,000.

Honduras has the highest number of HIV/AIDS cases in Central America, with the rate of infection increasing rapidly among women and those under age 19. In 2003 Honduras began receiving monies from the Global Fund for Aids, Tuberculosis, and Malaria to address its HIV/AIDS situation.

MIGRATION

Before 1969 there was a steady flow of immigrants from El Salvador. The steps taken by the Honduran government in 1969 to curb this influx were a contributing cause of the war with El Salvador during the same year. When the Sandinistas took over in Nicaragua in 1979, former National Guard members began to arrive in Honduras, and by 1983 there were 5,000–10,000 of them along the border. In addition, at least 25,000 Miskito Amerindians from Nicaragua and about 21,000 Salvadorans had fled to Honduras by the end of 1986. Many of them later returned. By the end of 1992 about 100,000 citizens of Central American nations had taken refuge in Honduras.

As a result of the Central American refugee problem of the 1990s, Honduras has adopted a restrictive policy toward refugees. There were very few refugees among the 44,000 migrants living in Honduras in 2000. In 2004 worker remittances were $1,134 million. In 2005, the net migration rate was estimated as -1.95 migrants per 1,000 population. The government viewed the migration levels as satisfactory.

ETHNIC GROUPS

The vast majority (90%) of the Honduran people are mestizo, a mixture of European and Amerindian. About 7% of the population is purely Amerindian, the largest proportion being in the Copán area near the Guatemalan border. Africans, about 2% of the population, live mostly along the north coast. About 1% of the population is European, chiefly of Spanish origin.

LANGUAGES

The official language is Spanish. However, English is used widely, especially in northern Honduras. The more important Amerindian languages include Miskito, Zambo, Paya, and Xicaque.

RELIGIONS

The Roman Catholic Church reports a membership that comprises slightly more than 80% of the country's total population. However, according to estimates based on a 2002 poll of citizens 18 or older, only 63% of the population identify themselves as Roman Catholic. Approximately 23% report themselves to be evangelical Christians, and 14% designate themselves as belonging to other religious groups. The remainder were either "others" or provided no answer. The primary religious groups include Roman Catholics, Jews, Greek Orthodox, Episcopalians, Lutherans, Jehovah's Witnesses, Mennonites, the Church of Jesus Christ of Latter-Day Saints (Mormons), the Union Church, and about 300 evangelical Protestant churches (including the Abundant Life, Living Love, and the Grand Commission church). There are small numbers of Muslims and Jews.

Religious freedom is guaranteed by the constitution of 1982. Though there is no state religion, many consult with the Roman Catholic Church and some Catholic leaders have been appointed to semiofficial commissions on key political and social issues. Certain Christian holidays are celebrated as public holidays.

TRANSPORTATION

In 2002 there were 13,603 km (8,461 mi) of highways, about 2,775 km (1,726 mi) of which were paved. Of the 112,300 registered vehicles in 2003, only 25,000 were passenger cars, while commercial vehicles totaled 87,300. The Pan American Highway virtually bypasses Honduras, entering from El Salvador and running to the eastern Nicaraguan border. The 362-km (225-mi) Inter-Ocean Highway is the only surface connection between the Pacific and the Caribbean that includes in its path both Tegucigalpa and San Pedro Sula. In 1971, a paved highway was opened between Tegucigalpa and San Pedro Sula and west to the Guatemalan border. Tegucigalpa is served by secondary roads to the north and east, while San Pedro Sula is connected both to the important Caribbean ports of Puerto Cortés, Tela, and Trujillo and to the western Mayan shrine site of Copán. Road improvements near the Nicaraguan border were undertaken with US military aid beginning in 1983.

Rail service exists only in the north, connecting the industrial and banana-growing northeastern coastal zone with the principal ports and cities. As of 2004, National Railway of Honduras, owned and operated by the government, maintains all 699 km (435 mi) of narrow gauge track.

Four principal ports—Puerto Cortés, Tela, La Ceiba, and Puer- to Castilla—serve the country on the Caribbean side. Another Caribbean port, Roatán, is offshore, in the Bay Islands, and Puerto de Henecán, on the Pacific coast, opened in 1979, replacing Amapala as a port facility, although the latter retains a naval base. La Ceiba and Tela are primarily banana-trade ports. Puerto Castilla (completed in 1980) serves the Olancho forestry project; and Puerto Cortés and Puerto de Henecán handle general traffic. River traffic is negligible, with only 465 km (289 mi) accessible and only to small craft, as of 2004. In 2005, the Honduran merchant fleet comprised 137 vessels of 1,000 GRT or more, totaling 598,600 GRT.

Air service is important in the transportation of passengers and cargo. In 2004 there were an estimated 115 airports in Honduras, 11 of which had paved runways as of 2005. The two principal airports are Ramon Villeda, at San Pedro Sula, and Toncontín, about 6.4 km (4 mi) from Tegucigalpa. Toncontín is served by Transportes Aéros Nacionales de Honduras/Servicio Aéreo de Honduras (TAN/SAHSA), Líneas Aéreas Costarricenses (LACSA), Challenge, and TACA airlines and the domestic carrier Lineas Aéreas Nacionales (LANSA). TAN/SAHSA flies to the United States, Mexico, and other Central American countries and also provides domestic passenger service. In 2001, San Pedro Sula International Airport serviced 510,000 passengers on scheduled domestic and international flights.

HISTORY

Before the Spaniards entered the land now called Honduras, the region was inhabited by the war-like Lencas and Jicaques, Mexican Amerindian traders, and Paya hunters and fishermen. The Mayan ceremonial center at Copán in western Honduras flourished about the 8th century ad but was in ruins when Columbus reached the mainland on his fourth voyage in 1502. He named the region Honduras, meaning "depths."

Colonization began in 1524 under Gil González de Ávila. In 1536, Pedro de Alvarado, who came from Guatemala at the bidding of Hernán Cortés in Mexico, founded San Pedro Sula, and another faction founded Comayagua in 1537. After the treacherous murder by the Spaniards of an Amerindian chieftain named Lempira in 1539, his followers were subjugated. In that year, Honduras was made part of the captaincy-general of Guatemala, and for most of the period until 1821, it was divided into two provinces, Comayagua and Tegucigalpa. Some silver was produced in the mines of Tegucigalpa, but the area was otherwise ignored by the Spanish empire.

Honduras joined other provinces of Central America in declaring independence from Spain in 1821. It came under the Mexican empire of Agustín de Iturbide in 1822–23. Honduras was a member of the United Provinces of Central America from 1824 to 1838. During that time, a liberal Honduran, Francisco Morazán, became president and struggled unsuccessfully to hold the federation together. He was exiled in 1840 and assassinated in 1842.

After Honduras declared itself independent on 26 October 1838, conservatives and liberals fought for political control. From 1840 to 1876, conservative leaders held power either as presidents or as army leaders. The second half of the 19th century brought the development, by US companies, of banana growing in northern Honduras. During the administration of liberal president Marco Aurelio Soto (1876–83), there was a "golden age" in Honduran letters and education.

US corporate interests, especially the United Fruit Co. (now Chiquita Brands International Inc.) and military dictators, dominated Honduran economic life during the first half of the 20th century. Honduran politics was dominated by the conservative Gen. Tiburcio Carías Andino (1932–48). In 1948, his handpicked successor, Juan Manuel Gálvez, took office. Gálvez proved to be more than a mere puppet, but was conservative nonetheless. When the election of 1954 produced no presidential candidate with a majority vote, he transferred the presidency to the vice president, Julio Lozano Díaz, who governed for almost two years. After an abortive attempt to have himself elected president, Díaz was deposed in 1956 by high army officers, who set up a junta. Democratic elections were held in 1957, and José Ramón Villeda Morales of the Liberal Party was elected president.

In 1963, just before completing the final months of his six-year term, Villeda was turned out of office by a coup. The liberal government was succeeded by a conservative coalition of military, Nationalist Party, and Liberal Party leaders under an air force officer, Col. Oswaldo López Arellano. This government was legalized almost two years later by an elected constituent assembly, which adopted a new constitution and proclaimed López president in June 1965.

During López's second term, a bitter and destructive four-day war broke out in July 1969 between Honduras and El Salvador. Although the immediate cause of the war was animosity arising from a World Cup elimination-round soccer match between the two countries, the underlying causes were a long-standing border dispute and the long-term migration of some 300,000 Salvadorans in search of land, which the Honduran government made it illegal for Salvadoran immigrants to own. Salvadoran troops won the ground war, but Honduran planes controlled the air. Out of this stalemate and with the help of the OAS, a compromise ceasefire was arranged. In June 1970, the two nations accepted a sevenpoint peace plan, creating a "no-man's-land" demilitarized zone along their common frontier. In the fall of 1973, Honduras and El Salvador began bilateral talks to resolve their differences. Progress was slow, and it was not until October 1980 that Honduras and El Salvador signed a treaty settling the dispute.

In the 1970s, López and the military continued to dominate Honduran politics. A civilian, Ramón Ernesto Cruz Uclés, was elected president in 1971, but lasted only briefly. By 1972, General López was back in power. General López assumed the title of chief of state, and suspended the National Congress and all political party activities. It was later discovered that in 1974 officials in the López administration had accepted a $1.25-million bribe from United Brands (formerly United Fruit and now Chiquita) in exchange for a 50% reduction in the banana tax. A Honduran investigative commission insisted on examining López's Swiss bank account, and the scandal came to be known as "Bananagate" in the United States. Finally, in April 1974, López was overthrown by a group of lieutenant colonels.

This military group was something of a reformist group, seeking social reforms and the removal of the senior officer corps. Political activity continued to be banned following the coup of 1975. Meanwhile, a significant grassroots movement, the National Front of United Peasants, had come to the fore and was pressuring the successive military governments to enact a program of large-scale land redistribution.

There followed two more military governments led by Col. Juan Alberto Melgar Castro (1975–78) and Gen. Policarpo Paz García (1978–83). This period saw strong economic growth and the building of a modern infrastructure for Honduras. At the same time, there was a gradual movement toward the democratization of the system.

Elections to a constituent assembly took place in April 1980, followed by general elections in November 1981. Under a new constitution in 1982, Roberto Suazo Córdova of the Liberal Party became president. The armed forces retained broad powers, including veto power over cabinet appointments and responsibility for national security. The military continued to grow in response to domestic instability and the fighting in neighboring Nicaragua and El Salvador. By 1983, several thousand anti-Sandinista guerrillas (popularly known as "contras") in Honduras were working for the overthrow of the Sandinista government, while the Honduran army, backed by the United States, was helping Salvadoran government forces in their fight against leftist guerrillas.

This stability became apparent in November 1985, when Hondurans elected José Simón Azcona Hoyo to the presidency in the first peaceful transfer of power between elected executives in half a century. Azcona was elected with only 27% of the vote, due to a peculiarity of Honduran electoral laws. Azcona attempted to distance himself from the United States in foreign policy and was critical of US contra policy. He signed the Central American peace plan outlined by President Oscar Arias Sánchez of Costa Rica; however, he did not move to close down contra bases as promised. The Suazo government worked closely with the United States on matters of domestic and foreign policy. US military presence in Honduras grew rapidly. Several joint military maneuvers took place during 1983–87, and the US CIA used Honduras during that time as a base for covert activities against the Sandinista regime. In exchange, the United States sent large amounts of economic aid to Honduras. Suazo also worked closely with the Honduran military, allowing it to pursue its anticommunist agenda freely. This arrangement led to an unprecedented political stabilization in Honduras.

In 1989, Rafael Leonardo Callejas of the National (conservative) Party was elected. With the Nicaraguan issue fading after the Sandinistas' electoral loss, Callejas focused on domestic issues, applying a dose of both conservative economics and IMF austerity measures to the Honduran economy. Callejas moved to reduce the deficit and allow for a set of market adjustments, which in the short term produced a good deal of dislocation but led to higher rates of growth thereafter. Most significantly, Callejas maintained good relations with the military. In an unprecedented show of restraint, the military sat on the sidelines as voters went to the polls in November 1993.

The voters themselves showed a good deal of resentment toward the Callejas reforms. The Liberal Party returned to power in the person of Carlos Roberto Reina. While it was unlikely that its economic problems would be solved quickly, Honduras nevertheless had achieved a level of political stability that few could have anticipated in decades past. Reina, known for his support of human rights and clean government, called for a "moral revolution" to combat crime, poverty, and widespread corruption in both the public and private sectors. In late 1994, corruption charges were filed against former president Callejas and other top government officials. Reina also took steps to further reduce the influence of Honduras's powerful military, most notably the abolition of the draft, including the notorious press-gang conscription by which young men were seized off the streets and forced into military service. The liberal administration also dismantled the military-controlled Public Security Forces (FUSEP), replacing them with a new civilian force.

Reina proved less successful in dealing with the economic problems of his nation, long considered the poorest in Central America. An already difficult situation was exacerbated by the 1994 drought that slashed production of hydroelectric power, creating an energy crisis that drove up food and fuel prices and caused chronic power outages. The struggle to improve economic conditions continued through 1996, with the government caught between an international financial community demanding tough structural reforms and a beleaguered population unwilling to tolerate the sacrifices entailed by such programs. In November of 1997, Carlos Rober- to Flores of the Liberal Party won the presidential elections with 52.8%. His party also won 62 out of 128 seats in the unicameral National Assembly. But the fury of Hurricane Mitch in October 1998 destroyed Honduras's economy and placed an even heavier burden on President Flores' challenges. The subsequent economic crisis of 1999 further worsened the economic situation.

Discontent with the government helped opposition candidate Ricardo Maduro win the 2001 presidential election with 52.2% of the vote. His National Party also came ahead in the legislative election with 46% of the vote, but it only gained 61 seats in the 128-seat assembly, forcing Maduro to seek the support of the smaller centrist parties to pass his legislative initiatives. The economy has continued to perform poorly. More than 50% of Hondurans live in poverty. In March 2005, the Honduran Congress ratified the Central American Free Trade Agreement (CAFTA) with the United States.

Crime and violence are significant problems in Honduras. Youth gangs known as maras are thought to have tens of thousands of members, and use threats and violence to control poorer areas in the main urban centers. In December 2004, gang members massacred 28 bus passengers in the northern city of Chamalecon. At the same time, police officers have been implicated in high-profile crimes; in January 2001, the Honduran Committee for the Defense of Human Rights reported that more than 1,000 street children had been murdered in 2000 by death squads backed by the police. Also, former military and security personnel, along with right wing paramilitary groups, are thought to be behind the murder of members of indigenous minority rights groups.

Presidential and legislative elections were held on 27 November 2005. Although National Party presidential candidate Porfirio Lobo Sosa—who came in second place behind Liberal Party candidate José Manuel Zelaya Rosales—contested the results of the election, the National Party after 10 days conceded the election to Zelaya. Zelaya took 49.9% of the vote to Lobo's 46.2%. In the elections for the National Congress, the Liberal Party won 62 of 128 seats, with the National Party winning 55. The Democratic Unification Party won 5 seats, followed by the Christian Democratic Party with 4 and the Innovation and Unity Party-Social-Democracy with 2.

GOVERNMENT

The constitution of 1965, suspended following the 1972 coup, was superseded by a governing document adopted in November 1982 (amended in 1995). It defines Honduras as a democratic republic headed by a president who must be a native-born civilian. The president is elected by direct popular vote for a four-year term. The executive branch also includes a cabinet of 14 ministers. A constitutional change approved by the legislature in November 1982 deprived the president of the title of commander-in-chief of the armed forces, transferring that responsibility to the army chief of staff.

The 1982 constitution provides for the popular election of deputies to the unicameral National Congress, consisting of 128 deputies. The deputies, who are directly elected for four-year terms, must be natives or residents of the constituencies they represent. Voting is compulsory for all men and women 18 years of age and older.

POLITICAL PARTIES

The two major parties in Honduras are the Liberal Party (Partido Liberal—PL) and the National Party (Partido Nacional—PN). Both descend from the old Liberal and Conservative Parties from the 19th century. Although generally the National Party remains more conservative in nature, the two parties are very close ideologically.

The National Party was in power from 1932 to 1954 under Carías and Gálvez. In 1965, a PN-backed constituent assembly promulgated a new constitution, designated its membership as the National Congress for a six-year term, and proclaimed Gen. Oswaldo López Arellano as president. In the 1971 elections, the PN candidate, Gen. Ramón Ernesto Cruz, received about 52% of the vote and was elected president. Their most recent success came in 1989 when Rafael Leonardo Callejas became president. In the 1997 elections, its presidential candidate was Alba Gunera, the first woman to seek Honduras's presidency. She gained 42% of the vote. The National Party won 54 seats in the National Assembly in 1997, but it benefited from Ricardo Maduro's victory in 2001 and increased its parliamentary representation to 61 seats.

The Liberals rely on their following in urban areas and among the laboring classes and have had some successes over the last half-century. In 1957, José Ramón Villeda Morales was elected to the presidency, and governed until 1963, when he was removed by a coup. The next successes came in 1981 with the election of Suazo, and then in 1985 with the election of José Simón Azcona Hoyo, in 1993 with Carlos Roberto Reina and in 1997 with Carlos Flores, who became president with 52% of the vote. The Liberal Party also won 67 out of the 128 seats in the National Assembly, but its support fell in 2001 when it captured only 40.8% of the vote and clinched 55 seats.

Two minor parties occupy mildly leftist positions: the Christian Democratic Party, under Marco Orlandi, and the National Innovation and Unity Party, led by Olban Valladares. Each of those parties won three and four seats respectively in the National Assembly in 2001. In 1997, a Social Democratic party made its debut. The Partido de Inovación y Unidad-Social Democracia (Party for Innovation and Unity-Social Democracy) won five seats in the National Assembly in 1997 and four seats in 2001.

In the December 1996 primaries preceding the November 1997 presidential elections, the Liberal Party nominated Carlos Rober- to Flores. Nora Gúnera de Melgar won the National Party nomination. Flores went on to win the election and his party won 62 of 128 seats in the National Assembly. In 2001, Ricardo Maduro became the National Party candidate and won the presidential election. His party captured 61 of the 128 seats in the Assembly.

In 2005, Liberal Party presidential candidate José Manuel Zelaya Rosales beat National Party candidate Porfirio Lobo Sosa. Zelaya took 49.9% of the vote to Lobo's 46.2%. In the elections for the National Congress, the Liberal Party won 62 of 128 seats, with the National Party winning 55. The Democratic Unification Party won 5 seats, followed by the Christian Democratic Party with 4 and the Innovation and Unity Party-Social-Democracy with 2.

LOCAL GOVERNMENT

Honduras is divided into 18 departments, each with a governor popularly elected for a two-year term. Departments are divided into municipalities (298 in 2005) governed by popularly elected councils. Localities with populations between 500 and 1,000 have a mayor, a legal representative, and a council member. A council member is added for each additional 1,000 residents, but the total is not to exceed seven. A special law governs the Central District of Tegucigalpa and Comayagüela.

Under the jurisdiction of the local government, municipal land is granted or lent to peasants in the district in sections known as ejidos. The ejido system is designed to aid landless peasants and has become an important function of local administration.

JUDICIAL SYSTEM

Judicial power is exercised by the nine-member Supreme Court (with seven substitutes) and courts of appeal, as well as by courts of first instance, justices of the peace, and courts of limited jurisdiction. The Supreme Court appoints the judges of the courts of appeal and the courts of first instance, who, in turn, appoint local justices of the peace. The justices of the Supreme Court are elected by the National Assembly and serve for seven-year terms. The Supreme Court has the power to declare laws unconstitutional.

There is a military court of first instance from which appeals can be taken to the civilian judicial system. In practice, the civilian courts are not independent. Because of underfunding and corruption, the formal resolution of legal disputes in courts is often the product of influence and political pressure.

The constitution provides for an independent judiciary and the right to a fair trial. A public defender program provides services to indigent defendants.

Honduras accepts the jurisdiction of the International Court of Justice with reservations.

ARMED FORCES

The Honduran military as of 2005 had an active force of 12,000 personnel with 60,000 registered as reservists. As of that year, there were 8,300 personnel in the Army, 2,300 in the Air Force, and 1,400 in the Navy, which included 830 Marines. The Army's major armament included 12 light tanks, 57 reconnaissance vehicles, and over 118 artillery pieces. Naval equipment consisted of 31 patrol/coastal vessels and one amphibious landing craft. The Air Force had 18 combat capable aircraft made up of 8 fighters and 10 operating fighter ground attack aircraft. Paramilitary forces consisted of an 8,000 member Public Security Force. The defense budget in 2005 was $52.4 million.

INTERNATIONAL COOPERATION

Honduras is a charter member of the United Nations, having joined on 17 December 1945; it is part of ECLAC and serves in several specialized agencies, such as FAO, IFC, UNESCO, UNIDO, ILO, IMF, WHO, and the World Bank. Honduras served on the UN Security Council from 1995–96. It is one of five members of the Central American Bank for Economic Integration (BCIE) and the Central American Common Market (CACM). In 2004, Honduras, the United States, Costa Rica, El Salvador, Guatemala, Nicaragua, and the Dominican Republic signed the US–Central America Free Trade Agreement (CAFTA). The agreement must be ratified by all participating countries before it enters into force.

Honduras is also part of G-77, the Latin American Economic System (LAES), the OAS, the Association of Caribbean States (ACS), and the Río Group. Honduras has observer status with the Latin American Integration Association (LAIA) and belongs to the Central American Parliament (PARLACEN), the Central American Integration System (SICA), and the Central American Security Commission (CASC). The country is a signatory of the 1947 Río Treaty, an inter-American security agreement.

Honduras is a member of the Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean (OPANAL) and is a signatory to the Organization for the Prohibition of Chemical Weapons. In environmental cooperation, Honduras is part of the Basel Convention, the Convention on Biological Diversity, Ramsar, CITES, the London Convention, International Tropical Timber Agreements, the Kyoto Protocol, the Montréal Protocol, MARPOL, the Nuclear Test Ban Treaty, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification. Honduras is also part of the Central American-US Joint Declaration (CONCAUSA).

ECONOMY

Honduras is one of the poorest and least developed countries in Latin America. The economy has been based mostly on agriculture, and over a third of the labor force in 2001 were still involved in this sector. However, agriculture's contribution to the overall GDP fell from 27% in 1998 to 18% in 2000 mainly due to the damage done to export crops by Hurricane Mitch in October 1998. About 16% of the land is arable, located mostly along the coastal plains. Coffee and bananas account for 65% of total Honduran export revenues. The vast majority of banana holdings are controlled by two US companies, United Brands and Standard Fruit, and most other profitable agricultural enterprises are owned by a small number of private citizens. With its economy enormously dependent on banana production, the country is vulnerable to weather and world market price variations. Honduras also has extensive forest, marine, and mineral resources, although widespread slash-and-burn agricultural methods continue to destroy forests. Hondurans, however, are becoming more concerned about protecting their environmental patrimony, in part because of the benefits of ecotourism.

In 1995, the Honduran economy rebounded from the severe recession experienced in 1994. Real GDP growth in 1995 was 3.6%. It was led by a solid expansion in agricultural production spurred by soaring world coffee prices, excellent basic grains harvests, and a resurrected banana industry as well as a growing maquila (Free Trade Zone of assembly plants) sector that employed 65,000 people by year's end. Honduras also received abundant rainfall which replenished the nation's dams and enabled the country to generate adequate hydroelectric energy, thus avoiding the drought-related power cuts which adversely affected economic performance in 1994. In 1996, Honduran GDP grew about 3.5%. However, inflation for 1996 reached 24.9%, well above the government's target of 16%. End of period inflation declined to 12.8% in 1997.

The economy, however, has still not recovered from the devastation left by Hurricane Mitch in late 1998, a Category Five Hurricane, rated the worst in 200 years, with winds reaching 200-mph and dumping unprecedented amounts of rain in their wake. The dead were officially counted at almost 6,000, but the total number buried in the mud slides will likely never be known. Hurricane Mitch destroyed 20–80% of the 1998 coffee and banana crops, and caused an estimated $3 billion in damages, equal to half of the annual GDP. End of period inflation rose to 15.9%. In 1999 the Paris Club creditor countries extended a three-year moratorium on debt repayments by Honduras and wrote-off about two-thirds of its $1.7 billion external debt contingent on the implementation of austerity, liberalization, and privatization program under the IMF's Poverty Reduction and Growth Facility (PRGF). In February 1999, a man-made disaster, a fire at the El Cajón hydroelectric plant, shut down 60% of the country's electricity until May. In all, GDP in 1999 fell 1.9% as the fall in production and export revenues was offset by increases in construction under the National Reconstruction and Transformation Plan presented by the government in May. Inflation was held to 10.9%, but the country's trade deficit, which had amounted to 10.7% of GDP in 1997, more than doubled as a proportion of GDP, to 23.8% in 1999.

In 2000, GDP growth rose to 5% as the reconstruction program continued, although the trade deficit remained high—21.1% of GDP. Inflation dipped slightly to 10.1% and Honduras qualified for debt forgiveness and restructuring under the Highly Indebted Poor Countries (HIPC) initiative which included adhering to a program of civil service reform that meant large layoffs in the public sector. Honduras joined Guatemala and El Salvador in a free trade agreement with Mexico, but ended up placing trade sanctions on Nicaragua over border and fishing rights disputes. In 2001, though reconstruction continued, Honduras was hit by a serious drought that helped reduce GDP growth to 3.5%. The trade deficit increased slightly as a percent of the GDP to 23% as exports were further depressed by a declining external demand. Inflation fell to 10%. In 2002, GDP grew about 1.4% and inflation fell to 7.7%, although the IMF withheld further disbursement of debt relief under the HIPC because the targets under the PRGF program had not been sufficiently met. The trade deficit remained inordinately high, amounting to about 25% of GDP.

The economy expanded by 5.0% in 2004, up from 3.0% in 2003; in 2005, the GDP growth rate was estimated at 4.0%, while the GDP per capita, at purchasing power parity, reached $2,900. The inflation rate was fairly stable and at 8.1% in 2004 it did not pose a major problem to the economy. The unemployment rate however, was, at 28%, very high and, together with the unequal distribution of income, represented one of the main concerns of the government. Honduras remains one of the poorest countries in the Western hemisphere and is dependent on the economy of the United States, its largest trading partner.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Honduras's gross domestic product (GDP) was estimated at $20.6 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $2,900. The annual growth rate of GDP was estimated at 4%. The average inflation rate in 2005 was 9.2%. It was estimated that agriculture accounted for 12.7% of GDP, industry 31.2%, and services 56.1%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $867 million or about $124 per capita and accounted for approximately 12.6% of GDP. Foreign aid receipts amounted to $389 million or about $56 per capita and accounted for approximately 5.7% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Honduras totaled $5.13 billion or about $736 per capita based on a GDP of $6.9 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 3.1%. It was estimated that in 1993 about 53% of the population had incomes below the poverty line.

LABOR

In 2005, the Honduran workforce totaled an estimated 2.54 million (excluding the armed forces). In 2002, agriculture accounted for 37.4% of the labor force, with services at 41.2%, and industry at 21.4%. The unemployment rate in 2005 was estimated at 28%.

Honduras did not have effective labor legislation until 1954. It joined the ILO in 1955 and subsequently adopted several labor codes, most notably that of 1959, which established the Ministry of Labor. The code also provided for union organization, collective bargaining, arbitration, social security, and fair labor standards. The principal labor organizations in 2002 were the Confederation of Honduran Workers (CTH), the General Workers' Central (CGT), and the Unitary Confederation of Honduran Workers (CUTH). Although retribution against union activity is prohibited by law, it frequently occurs. Only 14% of the workforce was unionized in 2002.

The law sets the maximum at an 8-hour day, a 44-hour week, and a 24-hour rest period each week. Because of high unemployment and a lack of government enforcement, however, these regulations are often not enforced. The labor code disallows children under 16 from working; however, in actuality, economic necessity and a lack of government enforcement mean that many children do work, especially on small farms in rural areas and as street vendors in cities. As of 2002, the daily minimum wage ranged from $2.25 to $4.08.

AGRICULTURE

Over 16% of the national territory is agriculturally productive; because of the uneconomical system of land use, much arable land has not been exploited. Agriculture is the primary sector of the economy, accounting for about 13% of GDP and 32% of employment in 2003. Farming methods are inefficient, and crop yields and qualities are low. The principal export crops are bananas and coffee; the major subsistence crops are corn, sorghum, beans, and rice. In 2002–04, crop production was 11% higher than during 1999–2001. The trade surplus in agricultural products totaled $173.7 million in 2004. Crop production for 2004 included: sugarcane, 5,363,000 tons; bananas, 965,000 tons; sorghum, 52,500 tons; dry beans, 69,900 tons; rice, 29,100 tons.

Since 1972, agrarian reform has been an announced priority of the national government. In January 1975, plans were made for the distribution of 600,000 hectares (1,483,000 acres) of land among 100,000 families over a five-year period. The program was suspended in 1979 because of lack of funds and pressure from landowners; by that time, only about one-third of the goal had been met. The reform program was revived in the early 1980s, and in 1982, lands totaling 27,960 hectares (69,090 acres) were distributed to 4,000 peasant families. By 1986, however, land reform was at a virtual standstill; peasant groups, demanding immediate land distribution, staged "land invasions" and seized the offices of the National Agrarian Institute in San Pedro Sula. The agricultural modernization law eliminated subsidized credit to small farmers, while high commercial interest rates squeezed small farmers from the credit market.

ANIMAL HUSBANDRY

Honduran consumption of milk and meat is traditionally low. However, pastures account for 13.8% of the total land area. Poor transportation facilities are a barrier to the development of stock raising and dairying, two potentially profitable economic activities. Honduras has nearly 100,000 livestock operations, mostly small or medium-sized producers. About 50% of all cattle ranches are 50 hectares (124 acres) or smaller, and 95% of all ranches have less than 100 head. In 2005, the cattle population was estimated at 2,500,000 head; hogs, 490,000; horses and mules, 250,600; and chickens, 18,700,000. That year, 1,761,950 tons of raw milk and 40,900 tons of eggs were produced. During 2002–04, livestock and poultry production had increased 6% since 1999–2001.

FISHING

There is commercial fishing in Puerto Cortés, and other areas are served by local fishermen. A small local company operates a cannery for the domestic market on the Gulf of Fonseca. There is a commercial fishing concern on the island of Guanaja, and a large refrigeration-factory ship is engaged in freezing shrimp and lobster near Caratasca. In 2003, the total catch was 30,835 tons. Shrimp accounted for about 65% of the total catch, taken mostly from southern shrimp farms. Exports of fish products amounted to $46.3 million in 2003.

FORESTRY

About 48% of Honduras is covered by forests, including stands of longleaf pine and such valuable hardwoods as cedar, ebony, mahogany, and walnut. Total roundwood production in 2004 amounted to 9.5 million cu m (335 million cu ft), and forest products exports were valued at $43.1 million. The National Corporation for Forestry Development (Corporación Hondureña de Desarrollo Forestal), established in 1974, is charged with the overall preservation, exploitation, and exportation of Honduran forest resources. The privatization of government-owned woodlands is expected to intensify the use of forestry resources. A restriction on the export of raw wood also is causing growth in the woodworking industry for semifinished wood products.

MINING

The mineral resources of Honduras consisted of cadmium, cement, gold, gypsum, iron oxide pigments, lead, limestone, marble, pozzolan, rhyolite, salt, silver, and zinc, a leading export commodity. However, inadequate transportation continued to hamper full development of the country's mineral resources. In the mid-1990s, the El Mochito Mine, in Santa Bárbara, was the country's only large operating base metal mine. By the end of 2002, the mine's proven and probable reserves stood at 3.2 million tons at an average grade of 6.8% zinc, 1.9% lead, and 78 grams per ton of silver. Estimated and indicated reserves were placed at 4.3 million tons, with inferred reserves at 2.4 million tons. Lead and zinc concentrates from the mine contributed less than 2% to GDP, which grew 5% in 2001, with the completion of reconstruction from Hurricane Mitch. Under 0.3% of the Honduran labor force was employed in the mining sector.

In 2003, production of mined zinc was estimated at 46,500 metric tons, up from 46,339 metric tons in 2002. Lead mine output in 2003 was estimated at 8,000 metric tons. Silver and gold production in 2003 totaled 2,040 kg and 3,029 kg, respectively in 2003. Limestone output that same year was estimated at 1.23 million metric tons, unchanged from 2001 and 2002.

ENERGY AND POWER

Honduras has no known proven reserves of oil, natural gas, coal or refining capacity. Therefore, it must import all the refined petroleum products natural gas or coal that it consumes. However, it is nearly self-sufficient for its own electricity needs. In 2002, imports and consumption of refined oil products averaged 38,710 barrels per day and 38,340 barrels per day, respectively. Coal was also imported that year, amounting to 186,000 short tons of hard coal, of which consumption came to 155,000 short tons. There were no imports or consumption of natural gas in 2002.

Honduras's electric power sector is heavily reliant upon fossil fueled plants and hydropower. However, the country is facing increasing demand for electric power and the possibility of power shortages due to underperforming hydroelectric facilities. In 1998, for example, a drought induced by El Niño forced the government to declare an energy emergency. Since then, the government has sought to diversify its sources of electric power via the construction of thermal power plants. In 2002, electric power generating capacity was 0.923 million kW, with hydropower accounting for 0.435 million kW and conventional thermal plants 0.488 million kW. In the same year, consumption of electricity totaled 3.371 billion kWh, while output came to 3.195 billion kWh, with hydropower accounting for 1.594 billion kWh, and 1.601 billion kWh from conventional thermal plants.

INDUSTRY

Industry as a whole supplied 32% of Honduras's GDP in 2000 and employed 21% of the work force. Manufacturing has traditionally been limited to small-scale light industry supplying domestic requirements.

Assembly plant operations developed in the 1970s, especially after a free-trade zone was established in Puerto Cortes in 1975. San Pedro Sula is the center for matches, cigars, cigarettes, cement, meatpacking, sugar, beer and soft drinks, fats and oils, processed foods, shoes, and candles. Tegucigalpa has plants for the manufacture of plastics, furniture, candles, cotton textiles, and leather. The country has also established a well-known apparel assembly industry in the maquiladora sector, which employed over 125,000 workers in 2001. As of 2002, Honduras was the second-largest exporter of maquiladora items to the US market.

Production in the manufacturing industry, mainly of nondurable goods, has realized significant growth in the late 1990s and into the 2000s. The largest growth has been seen in the construction sector, which rebounded after the destruction wrought by Hurricane Mitch in 1998. The electric, gas, and water sectors gained almost 9%. However, in 1999 a fire temporarily closed the Cajon hydroelectric plant that had supplied 40% of the country's electricity. The electronic distribution system was privatized in 2000.

The industrial production growth rate in 2003 was 7.7%, higher than the overall GDP growth rate, and an indicator that industry was an economic growth engine. In 2005, industry accounted for 31.2% of the GDP and it employed around 21% of the labor force. Services were by far the largest sector, with a 56.1% share of the economy, while agriculture was the smallest one, with a 12.7% share.

SCIENCE AND TECHNOLOGY

The Honduran Academy (founded in 1949), the Honduran Coffee Institute, and the National Agriculture Institute are all located in Tegucigalpa. The José Cecilio del Valle University (founded in 1978) has engineering and computer science departments, and the National Autonomous University of Honduras (founded in 1847) has faculties of medicine, pharmacy, dentistry, and engineering. The Pan-American Agricultural School (founded in 1942) has students from 20 Latin American countries. The National Museum in Tegucigalpa has natural history exhibits. In 1987–97, science and engineering students accounted for 24% of college and university enrollments.

In 2000, there were 74 researchers and 261 technicians per million people who were actively engaged in research and development (R&D) activities. For that same year, R&D spending by Honduras totaled $8.346 million, or 0.05% of GDP. In 2002, high technology exports by Honduras totaled $5 million, accounting for 2% of that country's manufactured exports.

DOMESTIC TRADE

The principal distribution centers include Puerto Cortes and San Pedro Sula, the latter of which is the commercial and industrial capital on the nation. Tegucigalpa is a leading center of retail trade. In major cities, shops are comparable to those in Central American towns. In the countryside, small markets and stores supply staple needs. As of 2002, there were about 55 foreign franchise companies present in the country. That number is expected to rise rapidly as local business managers become interested in franchise agreements. Foreign investment is encouraged, but in certain industries, the law requires that majority ownership be by Hondurans. The government maintains a certain degree of price management and controls over some items, including coffee, medicine, gasoline, milk, and sugar. A 12% sales tax applies to many goods and services, with the exception of staple food items and certain health and educational expenses.

Business hours are generally from 8 am to noon and 1:30 or 2 to 5 or 6 pm on weekdays and 8 to 11 am on Saturdays. Banks in Tegucigalpa are open from 9 am to 3 pm, Monday through Friday.

FOREIGN TRADE

Honduras remains at the forefront of Central American economic integration efforts. In May 1992, Honduras signed several trade agreements with its neighbors, including Free Trade Agreements with Guatemala and El Salvador, and a Honduran/Salvadoran/Guatemalan Northern Triangle Accord, with the intent of accelerating regional integration. Honduras is also a member of the WTO and the CACM. Free trade agreements were under discussion with Chile, Panama, Mexico, the Andean Community, Taiwan, and the Dominican Republic in 1999.

The most important export from Honduras is coffee (33%), followed by printed matter (13%), and the cultivation of fruits and nuts (10%). Other major exports include shrimp and lobster (3.5%), wood and logging products, including paper (4.1%), and tobacco (2.4%).

In 2005, exports reached $1.7 billion (FOB—Free on Board), while imports grew to $4.1 billion (FOB). In 2004, the bulk of exports went to the United States (54.4%), El Salvador (8.1%), Germany (5.9%), and Guatemala (5.4%). Imports included manufactures

and industrial raw materials, machinery and transport equipment, minerals and fuels, and food and animal products, and mainly came from the United States (37.5%), Guatemala (6.9%), Mexico (5.4%), Costa Rica (4.3%), and El Salvador (4%).

BALANCE OF PAYMENTS

Since 1973, trade balances have been negative. Investment income repatriated by foreign companies in Honduras is an endemic burden on the local economy. The Honduran authorities have generally adhered to the policies of fiscal and monetary restraint that were introduced early in 1959, following a period of exceptional strain on the country's international reserves. The fall in reserves resulted from a decline in income from the banana industry and reduced international prices for other major exports. Political instability in the region in the late 1970s to the mid-1980s, together with low commodity prices and high oil prices, had an adverse effect on the balance of payments. The 1990s brought a continuation of the negative trade balance (averaging 7% of GDP), especially after the increase of imports after Hurricane Mitch. However, increases in agricultural and clothes exports are forecast to improve the balance of payments situation. International reserves reached $700 million in 1999 due, in part, to increased remittances from abroad, and international aid following the hurricane ($300 million from the United States alone).

The US Central Intelligence Agency (CIA) reported that in 2001 the purchasing power parity of Honduras's exports was $2 billion while imports totaled $2.7 billion, resulting in a trade deficit of $700 million.

The International Monetary Fund (IMF) reported that in 2001 Honduras had exports of goods totaling $1.93 billion and imports totaling $2.81 billion. The services credit totaled $481 million and debit $653 million.

Exports of goods reached $1.6 billion in 2004, up from $1.4 billion in 2003. Imports increased from $3.1 billion in 2003, to $3.7

billion in 2004. The resource balance was consequently negative in both years, deteriorating from -$1.7 billion in 2003, to -$2.1 billion in 2004. The current account balance followed a similar path, worsening from -$292 million in 2003, to -$391 million in 2004. Foreign exchange reserves (including gold) reached $2.2 billion in 2005, covering more than six months of imports.

BANKING AND SECURITIES

In 1950, the Central Bank of Honduras (Banco Central de Honduras), the sole bank of issue, was established to centralize national financial operations and to replace foreign currencies then in circulation. In 2002, there were 22 commercial banks in Honduras with an estimated $3.4 billion in assets. In addition, there are some 150 nonbank financial institutions, many of them associated with the major banks. The Banco Atlántida, the most important commercial bank, accounts for over one-half of the total assets of private banks. US banks play a significant role in the commercial system: the Atlántida is affiliated with Chase Manhattan, and the second-largest commercial bank, the Banco de Honduras, is affiliated with Citibank of New York.

The government-controlled banks, including the National Development Bank, the National Agricultural Development Bank, and the Municipal Bank, provide credit for development projects. The National Development Bank extends agricultural and other credit—mainly to the tobacco, coffee, and livestock industries—and furnishes technical and financial assistance and other services to national economic interests. The Municipal Bank gives assistance at the local level.

In 1990, the Central Bank devalued the lempira and let it float freely until 1994, when a currency auction was created. The year of 1995 saw the Financial Sector Reform Law, which created a modern Banking Commission. Elements of Central Bank reforms in 1997 included the abolition of the government's right to borrow at below-market rates of interest. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $800.6 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $3.3 billion.

In 1990, a stock exchange opened in San Pedro Sula to raise short-term bond finance for local businesses.

INSURANCE

The oldest insurance company in Honduras is Honduras Savings (Ahorro Hondureño), established in 1917. Five other companies deal with life insurance and other types of policies. The number and the role of foreign companies in the insurance sector have decreased because of government incentives to domestic underwriters. In 2002, direct premiums written totaled $190 million, of which the largest portion, $142 million, was nonlife premiums. In 2003, the top nonlife insurer was Ahorro, with gross written nonlife premiums of $19.3 million. In that same year, the country's leading life insurer was Palic, with gross written life insurance premiums of $16.5 million.

PUBLIC FINANCE

The US Central Intelligence Agency (CIA) estimated that in 2005 Honduras's central government took in revenues of approximately $1.6 billion and had expenditures of $1.9 billion. Revenues minus expenditures totaled approximately -$245 million. Public debt in 2005 amounted to 70.5% of GDP. Total external debt was $4.675 billion.

TAXATION

Personal income in Honduras is taxed according to a progressive schedule with rates running from 10–25%. In 2001, the personal exemption level equaled six times the average income in Honduras whereas the threshold for the 25% bracket was 36 times the average income (down from over 100 times the average in 1997). Social security taxes are also collected. No distinction is made for tax purposes between individuals and businesses. Agricultural activities and industries classified as "basic" receive favorable depreciation rates. The corporate tax rate is 25%, with a 5% solidarity tax added. Profits from branch operations are taxed at 15%. The main indirect tax is a value-added tax (VAT) with a standard rate of 12%. An increased rate of 15% is applied to some items. Excise taxes are imposed mainly on beer and cigarettes, but also on imported matches, soft drinks, imported sugar, and new motor vehicles. New industries are exempted from income and production taxes and import duties for up to 10 years.

District and municipal governments obtain their revenues from taxes on amusements and livestock consumption, and from permits, licenses, registrations, certifications, storage charges, transfers of real estate, and fines.

CUSTOMS AND DUTIES

Most imports from outside the CACM are subject to a common external tariff (CET) ranging from 0–20%. Duties are levied ad valorem over the cost, insurance, and freight (CIF) value of goods. Honduras also imposes a sales tax (12% on most goods, 15% for alcohol and tobacco) and consumption tax on selected imports: 20% on alcoholic beverages, 35% on motor vehicles, and 55% on cigarettes. Capital goods are admitted at a tariff rate of only 1%.

In June 1992, the Central Bank of Honduras eliminated the need for most import permits and foreign exchange authorizations.

FOREIGN INVESTMENT

Traditionally, the Honduran attitude toward foreign enterprise has been favorable. Foreign capital is treated in the same way as domestic capital; however, firms in the distribution, health services, telecommunications, fishing and hunting, mining, insurance and financial services, or lumber business must have 51% Honduran ownership. Honduran economic development has been powerfully influenced by foreign investment in agriculture, industry, commerce, and other economic sectors.

Since 1910, the Standard and Fruit and Steamship Co. and United Brands (formerly the United Fruit Company) have developed railroads, ports, plantations, cattle farms, lumber yards, breweries, electric power, housing, and education. All contracts, aside from commodity exports, were canceled on 15 September 1975; plans to convert banana-marketing operations into a joint venture fell through, however, and in 1976, the government instead expropriated large tracts of land from the banana producers. Mines have been developed by the New York and Honduras Rosario Mining Co.

In 1998, annual foreign direct investment (FDI) inflows into Honduras totaled almost $100 million, down from $128 million in 1997. Annual FDI inflows more than doubled from 1999 to 2001, averaging $238 million.

The United States has historically been, and remains today, Honduras's largest investor, accounting for at least three-quarters FDI in Honduras. More than 100 American companies operate there. About 75% of those companies produce apparel, but the largest US investments in Honduras have been in the agribusiness sector. Other important sectors include petroleum products, marketing, electric power generation, banking, insurance, and tobacco.

US franchises have substantially increased their presence in recent years, mostly in the fast food sector. Other major investors include Japan, El Salvador, Korea, Hong Kong, and Taiwan. Total capital inflows reached $198 million in 2003 (or 3.0% of the GDP), up from $172 billion in 2002, but still far from the 2000 historical high of $282 million.

ECONOMIC DEVELOPMENT

During the administration of President Callejas, between 1990 and 1993, economic policy was mostly based on neoliberal ideas. This included a move from an inward-oriented policy to an export-oriented one. In addition, privatization was deeply emphasized. During that period, GDP was characterized by consistent growth. At the same time the country's galloping inflation was reduced to single digits. Government corruption, however, prompted citizens to vote Callejas out of office.

The November 1993 elections gave birth to a new political era in Honduras. President Reina of the Liberal Party was expected to slow down the pace of market-oriented reforms, but to continue privatization. Strong growth in nontraditional exports and the prospects for an improvement in coffee prices helped to finance the current account deficit. The continuation of foreign aid and investment was essential to closing the Honduras trade gap.

Reforms in the late 1990s were focused on alleviating the lot of the poorest citizens in Honduras, and improving international competitiveness. Hurricane Mitch in 1998 damaged the economy (particularly banana exports), as did low world coffee prices in the early 2000s, and cold weather and heavy rains in 2002–03 harmed the harvest (coffee revenues were down to $161 million in 2001, from $340 million in 2000). The garment-manufacturing industry, the third-largest in the world, turned in a strong performance in early 2003. In 2000, Honduras became eligible under the International Monetary Fund (IMF)/World Bank Heavily Indebted Poor Countries (HIPC) Initiative for $900 million in debt service relief.

The economic growth of 2005 was mainly led by an increase in consumption and exports. However, consumption levels are expected to grow slower than the overall economic growth (despite a rise in remittances from abroad) due to the impact on wages of above-target inflation. Maquilas and tourism, as well as major public development projects, will likely benefit the economy in coming years, although they can also lead to high levels of indebtedness.

SOCIAL DEVELOPMENT

The social insurance program covers accidents, illness, maternity, old age, occupational disease, unemployment, disability, death, and other circumstances affecting the capacity to work. Social security services are furnished and administered by the Honduran Social Security Institute and financed by contributions from employees, employers, and the government. Workers contribute 1% of their earnings toward retirement, disability, and survivor insurance, while employers paid 2% of their payroll. Retirement is set at age 65 for men and age 60 for women. These programs exclude domestic, temporary and some agricultural workers. Workers' medical benefits include medical care and surgery, hospitalization and medications, and appliances.

Violence against women remains widespread although the penal code classifies domestic violence and sexual harassment as crimes. These laws are not effectively enforced. Cultural attitudes toward women limit career opportunities, and women mostly work in low status jobs. Women are treated equally under the law in divorce cases. There is a growing problem of child abuse, and trafficking in children continues.

The government's human rights record has improved since 1995, but serious abuses still occur, including torture and killing by the police. Human rights groups have challenged the existence of organized death squads.

HEALTH

Health conditions in Honduras are among the worst in the Western Hemisphere. There are an estimated 83 physicians, 25 nurses, and 1 dentist per 100,000 people. The Inter-American Cooperative Public Health Service, created in 1942 under the joint sponsorship of Honduras and the United States, has contributed to public health through malaria control, construction of water systems and sewage disposal plants, personnel training, and the establishment of a national tuberculosis sanatorium. US Peace Corps volunteers help train personnel for urban and rural clinics. Nearly 39% of children under five years of age were considered malnourished as of 2000. Honduras started fortifying sugar with vitamin A in 1996. Health care expenditure was relatively high, estimated at 8.6% of GDP.

Major causes of illness and death are diseases of the digestive tract, intestinal parasites, accidents, suicides, influenza, pneumonia, cancer, and infant diseases. Malnutrition, impure water, poor sewage disposal, and inadequate housing are the major health problems. In 2000, 90% of the population had access to safe drinking water and 77% had adequate sanitation. In 1995, there were 4,717 cases of cholera, of which 77 turned fatal. In 1995, there were 1,022 malaria cases per 100,000 people. Honduras has been hard hit by AIDS. The HIV/AIDS prevalence was 1.80 per 100 adults in 2003. As of 2004, there were approximately 63,000 people living with HIV/AIDS in the country. There were an estimated 4,100 deaths from AIDS in 2003. Immunization rates for children up to one year old were as follows: tuberculosis, 99%; diphtheria, pertussis, and tetanus, 94%; polio, 93%; and measles, 89%. The government pays 79% of routine immunization bills. As of 2002, the birth rate was estimated at 31 per 1,000 people and the general mortality rate at 5 per 1,000 people. About 50% of married women (ages 15 to 49) were using contraception. In 2000 the total fertility rate was 3.9 children per mother during her childbearing years. The infant mortality rate in 2005 was 26.47 per 1,000 live births. Life expectancy in the same year was an average of 69.30 years.

HOUSING

Housing shortages and lack of access to basic utilities in existing housing units has been an ongoing problem throughout most of the country. In recent years, the government has initiated and participated in several programs focusing on low-income housing construction. These have included a $30-million low-cost housing program sponsored by the Housing Finance Corp. and a $19-million venture undertaken by the National Housing Institute.

As of 2000, about 90% of the population had access to improved water sources; 77% of the population had access to improved sanitation systems. As of the 2001 census, there were about 1,487,319 housing units in the nation. The vast majority of housing units are individual homes, about 66% of which are considered to be deficient. Many homes are simply made of cardboard or plastic structures that house from 4 to 10 people in a single room.

EDUCATION

Public education is free and compulsory for six years (ages 6 to 12). After these six years of primary education, students take three years of lower secondary school and two years of upper secondary school. In the upper level, students choose between literary or scientific tracks. Students may also choose to attend a three-year technical school at the upper level. The academic year runs from February to November.

In 2001, about 21% of children between the ages of four and six were enrolled in some type of preschool program. It is estimated that about 79% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 34:1 in 2003. As of 1998, there were 169,430 students enrolled in secondary schools.

The major university is the National Autonomous University of Honduras, founded at Tegucigalpa in 1847, with branches at San Pedro Sula and La Ceiba. There are several other universities, as well as technical and agricultural schools. In 2001, about 15% of the tertiary age population were enrolled in some type of higher education program. The adult literacy rate for 2004 was estimated at about 80%.

As of 2003, public expenditure on education was estimated at 4% of GDP.

LIBRARIES AND MUSEUMS

Although the National Archive and Library of Honduras was established in 1880 to conserve and maintain the records of the republic, no great attention has been shown to government documents and other records in modern times. The National Archive and Library (40,000 volumes) includes land titles dating from 1580, historical documents dating from the 17th century, a newspaper collection from 1880 onward, a civil registry, and a collection of laws since 1880. The Ministry of Education has charge of the National Archive, as well as of other libraries and museums. The National University's library in Tegucigalpa contains over 200,000 volumes.

In Tegucigalpa, the National Museum exhibits historical and archeological works and the Miguel Paz Baraona Historical Museum highlights the personal effects of the national hero as well as the country's history. Also in Tegucigalpa are the National Art Gallery, the Museum of Natural History, and the Museum of Military History. The Museum of Anthropology in San Pedro Sula covers regional history from 1500 bc to present day and houses an impressive collection of Mayan artifacts. The Mayan Museum of Sculpture is in Copan. A Colonial Museum in Comayagua contains a collection of religious art and artifacts.

MEDIA

The government owns and operates postal, telephone, and telegraph services. Tegucigalpa and San Pedro Sula are linked by a multiplex radio relay network. The Tropical Radio Co. provides international radiotelegraph and radiotelephone service. In 2003, there were an estimated 48 mainline telephones for every 1,000 people; about 342,200 people were on a waiting list for telephone service installation. The same year, there were approximately 49 mobile phones in use for every 1,000 people.

As of 1998, Honduras had 241 AM and 53 FM radio stations. In 1997, there were 11 television stations. In 2003, there were an estimated 411 radios and 119 television sets for every 1,000 people. About 21.6 of every 1,000 people were cable subscribers. Also in 2003, there were 13.6 personal computers for every 1,000 people and 25 of every 1,000 people had access to the Internet. There were 31 secure Internet servers in the country in 2004.

The country's principal newspapers (with 2004 circulation) were El Heraldo (30,000), Tiempo (30,000), and La Tribuna (20,000), all published in Tegucigalpa, and La Prensa (62,000), published in San Pedro Sula. La Tribuna is owned by President Flores.

The constitution provides for freedom of speech and press, and the government is said to generally respect these rights. The media itself, however, is said to be subject to a high degree of politicization and corruption.

ORGANIZATIONS

The Chamber of Commerce and Industries has its headquarters in Tegucigalpa; chambers of commerce also function in San Pedro Sula, La Ceiba, and other towns. Business and industry organizations include the Federation of Agricultural Producers and Exporters, the Honduran Manufacturers Association, and the Honduran Association of Sugar Producers. Various professional associations are also active.

The National Federation of University Students of Honduras is an active student movement. Other national youth organizations include scouting and YMCA/YWCA programs. There are several sports associations promoting amateur competition in such pastimes as tennis, football (soccer), badminton, tae kwon do, and baseball. There are also active branches of the Special Olympics.

Volunteer service organizations, such as the Lions Clubs International, are present. There are national chapters of the Red Cross, Habitat for Humanity, Caritas, and CARE.

TOURISM, TRAVEL, AND RECREATION

The main tourist attraction is the restoration at Copán, the second-largest city of the ancient Mayan Empire. There are many beaches on the northern and southern coasts where there is vibrant underwater life. Fishing is popular in Trujillo Bay and Lake Yojoa. A valid passport is needed for entry, and all visitors need visas except for nationals of the United States, and of the countries of Central and South America. Evidence of vaccination against yellow fever is required if traveling from an infected country.

Approximately 610,535 tourists visited Honduras in 2003, an 11% increase from 2002. About 57% of the visitors came from Central America. There were 18,590 hotel rooms with 26,897 beds that same year. The average length of stay was estimated at 10 nights. Gross tourism expenditures totaled $341 million.

In 2004, the US Department of State estimated the cost of staying in Tegucigalpa at $173 per day. Daily costs in San Pedro Sula were estimated at $163 in 2002.

FAMOUS HONDURANS

José Cecilio del Valle (1780–1834), a member of the French Academy of Sciences, was an intellectual, a political leader, and the author of the Central American declaration of independence. Francisco Morazán (1799–1842) was the last president of the United Provinces of Central America, which lasted from 1823 to 1839. Father José Trinidad Reyes (1797–1855) founded an institute in 1847 that became the National University. Outstanding literary figures were Marco Aurelio Soto (1846–1908), an essayist and liberal president; Ramón Rosa (1848–93), an essayist and biographer; Policarpo Bonilla (1858–1926), a politician and author of political works; Alberto Membreño (1859–1921), a philologist; Juan Ramón Molina (1875–1908), a modernist poet; Froilán Turcios (1875–1943), a novelist and writer of fantastic tales; Rafael Heliodoro Valle (1891–1959), a historian and biographer; and Ramón Amaya Amador (1916–1966), a journalist and left wing political figure. Contemporary writers include Eduardo Bähr (b.1940), Roberto Sosa (b.1930), Amanda Castro (b.1962), Javier Abril Espinoza (b.1967), and Roberto Quesada (b.1962).

DEPENDENCIES

Honduras has no territories or colonies.

BIBLIOGRAPHY

Binns, Jack R. The United States in Honduras, 1980–1981: An Ambassador's Memoir. Jefferson, N.C.: McFarland and Co., 2000.

Calvert, Peter. A Political and Economic Dictionary of Latin America. Philadelphia: Routledge/Taylor and Francis, 2004.

D and B's Export Guide to Honduras. Parsippany, N.J.: Dun and Bradstreet, 1999.

Euraque, Dar'io A. Reinterpreting the Banana Republic: Region and State in Honduras, 1870–1972. Chapel Hill: University of North Carolina Press, 1996.

Health in the Americas, 2002 edition. Washington, D.C.: Pan American Health Organization, Pan American Sanitary Bureau, Regional Office of the World Health Organization, 2002.

Kelly, Joyce. An Archaeological Guide to Northern Central America: Belize, Guatemala, Honduras, and El Salvador. Norman, Okla.: University of Oklahoma Press, 1996.

Meyer, Harvey Kessler. Historical Dictionary of Honduras. 2nd ed. Metuchen, N.J.: Scarecrow Press, 1994.

HONDURAS

Compiled from the December 2005 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Honduras

PROFILE

Geography

Area:

112,090 sq. km. (43,278 sq. mi.); about the size of Louisiana.

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 (2004 est.):

6.8 million.

Growth rate (2004 est.):

2.24%.

Ethnic groups:

90% mestizo (mixed Indian and European); others of European, Arab, African, or Asian ancestry; and indigenous Indians.

Religion:

Roman Catholic, Protestant minority.

Language:

Spanish.

Education:

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 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 (2003)

GDP:

$17.46 billion.

Growth rate:

2.5%.

Per capita GDP:

$2,600.

Natural resources:

Arable land, forests, minerals, and fisheries.

Agriculture (11% 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.

Trade:

Exports—$1.37 billion: apparel, coffee, shrimp, bananas, palm oil, gold, zinc/lead concentrates, soap/detergents, melons, lobster, pineapple, lumber, sugar, and tobacco. Major market—U.S. (69%). Imports—$3.11 billion: fabrics, yarn, machinery, chemicals, petroleum, vehicles, processed foods, metals, agricultural products, plastic articles, and paper articles. Major source—U.S. (53%).

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. He named the area "Honduras" (meaning "depths") for the deep water off the coast. Spaniard Hernan Cortes arrived in 1524. The Spanish founded several settlements along the coast, and Honduras formed part of the colonial era Captaincy General of Guatemala. The cities of Comayagua and Tegucigalpa developed as early mining centers.

HISTORY

Independence

Honduras, along with many 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. Social and economic differences between Honduras and its regional neighbors exacerbated harsh partisan strife among Central American leaders and brought on the federation's collapse in 1838. Gen. Francisco Morazan—a Honduran national hero—led unsuccessful efforts to maintain the federation, and restoring Central American unity remained the chief aim of Honduran foreign policy until after World War I.

Since independence, Honduras has been plagued with nearly 300 incidents of unrest, including internal rebellions, civil wars, and changes of government—more than half of which occurred during the 20th century. The country traditionally lacked both an economic infrastructure and social and political integration. Its 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. During the relatively stable years of the Great Depression, authoritarian Gen. Tiburcio Carias Andino controlled Honduras. His ties to dictators in neighboring countries and to U.S. banana companies helped him maintain power until 1948. By then, provincial military leaders had begun to gain control of the two major parties, the Nationalists and the Liberals.

From Military to Civilian Rule

In October 1955—after two authoritarian administrations and a 1954 general strike by banana workers on the north coast—young military reformists staged a palace coup that installed a provisional junta and paved the way for constituent assembly elections in 1957. This assembly appointed Dr. Ramon Villeda Morales as President and transformed itself into a national legislature with a 6-year term. The Liberal Party ruled during 1957-63. At the same time, the military took its first steps to become a professional institution independent of leadership from any one political party, and the first class of the newly created military academy graduated in 1960. In October 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. A civilian President—Ramon Cruz of the National Party—took power briefly in 1970 but proved unable to manage the government. In December 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.

Gen. Lopez's successors continued armed forces modernization programs, built army and security forces, and concentrated on Honduran Air Force superiority over its neighbors. The regimes of Gen. Melgar Castro (1975-78) and Gen. Paz Garcia (1978-83) 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.

Following the overthrow of Anastasio Somoza in Nicaragua in 1979 and general instability in El Salvador at the time, the Honduran military accelerated plans to return the country to civilian rule. A constituent assembly was popularly elected in April 1980, and general elections were held in November 1981. A new constitution was approved in 1982, and the Liberal Party government of President Roberto Suazo Cordoba took office following free and fair elections.

Suazo relied on U.S. support to help during a severe economic recession which was the result of regional instability caused by the revolutionary Sandinista government in Nicaragua and the chaos of the brutal civil war in El Salvador. Close cooperation on political and military issues with the United States was complemented by 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 November 1985 election approached, the Liberal Party had difficulty settling on a candidate, and 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 January 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, Rafael Callejas won the presidential election, taking office in January 1990. Callejas concentrated on economic reform, reducing the deficit, and taking steps to deal with an

overvalued exchange rate and major structural barriers to investment. He began the movement to place the military under civilian control and laid the groundwork for the creation of the public ministry (attorney general's office).

Despite his administration's economic reforms, 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 over National Party contender Oswaldo Ramos Soto, with Reina winning 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 and was successful in increasing civilian control over the armed forces and transferring the police from military to civilian authority.

Reina also restored national fiscal health by substantially increasing Central Bank net international reserves, reducing inflation, restoring economic growth, and, perhaps most importantly, holding down spending.

Carlos Roberto Flores Facusse took office on January 27, 1998, as Honduras' fifth democratically elected President since democratic institutions were restored in 1981. Like three of his four predecessors, Flores was a member of the Liberal Party. He was elected by a 10% margin over his main opponent, National Party nominee Nora de Melgar. Upon taking office on January 27, 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. The Honduran Government agreed to a new transparent process to manage relief funds, which included significant donor oversight. This open process greatly facilitated the relief and reconstruction effort. President Flores and his administration successfully managed more than $600 million in international assistance. Civil society's role in the government-coordinated reconstruction process was lauded internationally. President Flores also moved judicial and penal reforms forward. He established an anticorruption commission, supported passage of a new penal code based on the oral accusatorial system, and saw passage of a law that created an independent Supreme Court. Flores cemented the transition from military to civilian rule by eliminating the military's commander in chief position, and by signing a law that established a civilian Minister of Defense with formal authority over the military.

Ricardo Maduro Joest of the National Party was elected to the Honduran presidency on November 25, 2001, outpolling the Liberal candidate, Rafael Pineda Ponce, by 8 percentage points. He was inaugurated on January 27, 2002. The elections, characterized by international observer teams as free, fair, and peaceful, reflected the maturing of Honduras' democratic institutions. During his campaign, President Maduro promised to reduce crime, reinvigorate the economy, and fight corruption. Working to fulfill this promise, 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 problem. While the initial result of this policy was overwhelmingly positive, the policy appears to have had only a minimally positive long-term effect on the country's crime rate. President Maduro has been a strong supporter of the global war on terrorism and joined the U.S.-led coalition in Iraq with a contribution of 370 troops. Under President Maduro's guidance, Honduras also participated in the successful Central America Free Trade Agreement talks and actively promoted greater Central American economic integration.

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, 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, human rights and civil liberties are reasonably well protected. There are no known political prisoners in Honduras, and the privately owned media frequently exercises its right to criticize without fear of reprisals. Organized labor now represents approximately 8% of the work force and its economic and political influence has declined. Honduras held its sixth consecutive democratic elections in November 2001, to elect a new president, unicameral Congress, and mayors. For only the second time, voters were able to cast separate ballots for each office, and for the first time, voters denied the presidentelect's party an absolute majority in the Congress. The incidence of cross-voting between presidential and congressional candidates was marked.

Political Parties

The two major parties—the Liberal Party and the National Party—run active campaigns throughout the country. Their ideologies are mostly centrist, with diverse factions in each centered on personalities. The three smaller registered parties—the Christian Democratic Party, the Innovation and National Unity Party, and the Democratic Unification Party—have increased their political muscle in the National Congress by doubling their representation in the 2001 elections. Despite significant progress in training and installing more skillful advisers at the top of each party ladder, electoral politics in Honduras remain traditionalist and paternalistic.

Principal Government Officials

President: Ricardo MADURO
First Vice Pres.: Vicente WILLIAMS
Second Vice Pres.: Armida DE LOPEZ
Third Vice Pres.: Alberto DIAZ
Min. of Agriculture & Livestock: Mariano JIMENEZ
Min. of Culture, Arts, & Sports:
Min. of Defense: Federico BREVE Travieso
Min. of Education: Roberto MARTINEZ Lozano
Min. of Finance: William CHONG Wong
Min. of Foreign Relations: Mario FORTIN Midence
Min. of Industry & Commerce: Irving GUERRERO Cubas
Min. of Governance & Justice: Jose Roberto PACHECO Reyes
Min. of Labor: German LEITZELAR
Min. of Natural Resources & Environment: Patricia PANTING
Min. of the Presidency: Ramon MEDINA Luna
Min. of Public Employees' Retirement & Pension (INJUPEMP): David Mendoza LUPIAC
Min. of Public Health: Elias LIZARDO
Min. of Public Works, Transportation, & Housing: Jorge CARRANZA
Min. of Security: Oscar ALVAREZ
Min. of Tourism: Thiery De PIERREFEU
Min. Without Portfolio (health sector): Carlos VARGAS
Min. Without Portfolio (housing sector): Johnny KAFATI
Min. Without Portfolio (investment promotion sector): Camilo ATALA
Min. Without Portfolio (public service sector): Eduardo KAFATI
Min. Without Portfolio (strategic affairs and communication sector): Ramon MEDINA
Pres., Central Bank: Maria Elena MONDRAGON de Villar
Ambassador to the US:
Permanent Representative to the UN, New York: Manuel ACOSTA BONILLA

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. Industrial development has been limited, and historically the economy has been dependent on exports of coffee and bananas. In the past 15 years, however, the economy has been diversified, with the development of non-traditional exports such as cultivated shrimp, melons, and tourism, and the establishment of a growing maquila industry (primarily, assembly for re-export of textiles and apparel). Investment incentives aimed at attracting foreign capital in export industries have been introduced. Meanwhile the coffee industry has suffered from low world prices, and banana production has yet to reach pre-Hurricane Mitch levels. Coffee and bananas now account for less than 15% of Honduran export earnings. Honduras also has extensive forest, marine, and mineral resources, although widespread slash-and-burn agricultural methods continue to destroy Honduran forests.

Family remittances from Hondurans living abroad (mostly in the United States) rose 19% to $860 million in 2003, and are soon expected to pass the maquila sector as the country's largest source of foreign exchange.

The exchange rate as of July 2004 was 18.26 Honduran Lempira to the dollar, compared to 17.18 Lempira to the dollar a year earlier. The currency has been undergoing a steady and controlled devaluation of roughly 6% per year for the last several years. Inflation, as measured by the consumer price index, was 7.7% in 2003, identical to the rate of 2002 and considerably lower than the double-digit inflation rates of the 1990s. International reserves, which had fallen from $1.235 billion at the end of 2002 to $1.16 billion at end of 2003, rebounded to $1.248 million by April 2004.

Unemployment was officially estimated at around 27.5% in 2003. The economic slowdown in the United States in 2001 and 2002 caused a downturn in the growth of Honduras' maquila sector, but investment and employment revived in 2003. Employment in the sector is almost back to its 2000 peak of 125,000 workers.

In July 2000, Honduras reached its decision point under the Heavily Indebted Poor Countries (HIPC) initiative, qualifying the country for interim multilateral debt relief. However, fiscal problems soon derailed the government's International Monetary Fund (IMF) program and put the HIPC debt relief on hold.

After the Honduran Government took several important measures to control government spending and improve its fiscal situation, the IMF approved a new 3-year Poverty Reduction and Growth Facility program in February 2004. This in turn made possible the signing of a debt relief agreement with Paris Club creditors in April 2004, and Honduras reached the HIPC completion point in 2005.

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 syndicates. Honduras supports efforts at regional integration and deployed troops to Iraq in support of Operation Iraqi Freedom. However, the resolution of the civil wars in El Salvador and Nicaragua and across-the-board budget cuts made in all ministries greatly reduced funding for the Honduran armed forces, and the abolition of the draft created staffing gaps in the now all-volunteer armed forces.

The military is now far below its authorized strength. In January 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), and the Central American Security Commission (CASC). During 1995-96, Honduras, a founding member of the United Nations, for the first time served as a nonpermanent member of the UN Security Council. Honduras is currently a member of the UN Human Rights Commission.

Honduras is a strong proponent of Central American cooperation and integration, and continues to work towards the implementation of a regional customs union, 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 and the emigration of some 300,000 Salvadorans to Honduras in search of land and employment. The catalyst was nationalistic feelings aroused by a series of soccer matches between the two countries, but the roots of the conflict lay in local disputes over land ownership and usage. The two countries formally signed a peace treaty on October 30, 1980, which put the border dispute before the International Court of Justice (ICJ). In September 1992, the Court awarded most of the disputed territory to Honduras. 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. Honduras and El Salvador maintain normal diplomatic and trade relations; however, they continue to disagree over the status of their maritime borders in the Gulf of Fonseca.

Honduras and Nicaragua had tense relations throughout 2000 and early 2001 due to a maritime boundary dispute off the Atlantic Coast. Relations between the two countries have since improved, although some animosity remains.

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 a nonpermanent member of the UN Security Council, Honduras played a very helpful role in 1996, most notably in advancing the process of selecting a new UN Secretary General during its October presidency of the Council. The United States also continued to be able to count on Honduras' strong support in the war on terrorism.

The United States favors stable, peaceful relations between Honduras and its Central American neighbors. During the 1980s, Honduras supported U.S. policy in Central America 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 troops for the reconstruction of Iraq, and remains interested in participating in other UN peacekeeping missions.

The United States is Honduras' chief trading partner, supplying 53% of its imports and purchasing 69% of its exports in 2003. 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. The United States encourages U.S. investment that contributes to Honduran development and bilateral trade.

U.S. direct investment in Honduras is valued at $601 million, about 44% of the total foreign direct investment (FDI) in the country of $1.37 billion. FDI flow into Honduras in 2003 totaled $176 million, with the United States leading the way with investments totaling $145 million, or 82% of the total FDI. The largest U.S. investments in Honduras are in the maquila sector, in which apparel and textile export revenues totaled $2.53 billion in 2003. There are also significant U.S. investments in fruit production—particularly bananas, melons, and pineapple—tourism, energy generation, shrimp culture, 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.

From January to December of 2003, the United States negotiated a free trade agreement with Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Further negotiations in 2004 brought the Dominican Republic into the agreement as well. The agreement was signed in May 2004, but must be ratified by the U.S. Congress and by those of the other participating countries before it enters into force. The agreement, known as the U.S.-Central America Free Trade Agreement or CAFTA, will eliminate tariffs and other barriers to trade in goods, services, agricultural products, and investments. Additionally, CAFTA is seen as a mechanism to solidify democracy, encourage greater regional integration, and provide safeguards for environmental protection and labor rights.

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 the training and exercises.

As of early 2001, the U.S.-trained Honduran demining unit had cleared nine major minefields measuring about 333,000 square meters, and more than 2,200 mines had been destroyed. The project was completed in 2004, and Honduras has been declared mine free.

U.S. Policy Toward Honduras

U.S. policy toward Honduras is aimed at consolidating stable democracy with a justice system that protects human rights and promotes 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 11,000 Americans residing there. More than 150 American companies operate in Honduras.

Economic and Development Assistance

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 was $45 million in fiscal year 2004. Over the years, U.S. foreign assistance has helped advance such objectives as fostering democratic institutions, increasing private sector employment and income, helping Honduras fund its arrears with international financial institutions, providing humanitarian aid, increasing agricultural production, and providing loans to microbusinesses.

October 1998's Hurricane Mitch—the worst natural disaster ever to strike the Western Hemisphere—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. The vast majority of the U.S. reconstruction projects were scheduled to finish by December 31, 2001, with the exception of some water and sanitation and transparency projects that were extended for another 14 months. 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.

New and existing U.S. economic programs—some with proposed enhancements that have taken on even greater importance since the hurricane—include the Caribbean Basin Economic Recovery Act, Overseas Private Investment Corporation financing for private investment and insurance against risks of war and expropriation, U.S. Trade Development Agency grant loans for pre-feasibility studies of projects with U.S. product and services export potential, and U.S. Export-Import Bank short- and medium-term financing for U.S. exports to Honduran importers. All of these provide greater economic opportunity for U.S. and Honduran businessmen and women.

The Peace Corps has been active in Honduras since 1962, and currently the program is one of the largest in the world. In 2004, there were 223 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 through the International Criminal Training Assistance Program.

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 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. While JTF-Bravo has been involved in several multilateral exercises and numerous smaller humanitarian deployments, it played an absolutely critical role in helping the United States to respond to Hurricanes Mitch and Keith, and the earthquakes in El Salvador by saving lives, repairing critical infrastructure, and in meeting high priority health and sanitation needs. U.S. forces also delivered millions of dollars worth of privately donated goods to those in need.

U.S. Business Opportunities

U.S. Department of Commerce trade data show that bilateral trade between the two nations totaled $5.83 billion in 2002, the most recent year for which statistics are available. Exports of goods and services from the U.S. totaled $2.56 billion 2002, and Honduran exports to the U.S. totaled $3.26 billion. U.S. investors account for nearly two-thirds of the estimated stock of $1.3 billion in foreign direct investment in Honduras. 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. 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

TEGUCIGALPA (E) Address: Avenida La Paz, Tegucigalpa, Honduras; APO/FPO: Unit 2900, Box 68, APO AA 34022; Phone: (504) 236-9320; Fax: (504) 236-9037; Workweek: M-F, 8 - 5 local time; Website: www.usmission.hn

Other 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

Caribbean/Latin American Action
1818 N Street, NW
Suite 310
Washington, DC 20036
Tel: 202-466-7464
Fax: 202-822-0075

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://www.ita.doc.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

Consular Information Sheet

December 29, 2005

Country Description:

Honduras is a democracy with a developing economy. The national language is Spanish, although English is often spoken in the Bay Islands. The climate is generally pleasant and temperate, with dry and wet seasons. During the dry season, widespread forest fires and agricultural burning can lead to severely degraded air quality throughout the country leading to respiratory problems and airport closures. The terrain ranges from mountainous to coastal beaches and jungle lowlands. Facilities that would normally be used by tourists, including hotels and restaurants are generally adequate in the capital city of Tegucigalpa, San Pedro Sula, Tela, La Ceiba, the Bay Islands and near the Copan ruins. Large sections of the country, however, lack basic public services or even a governmental presence. Currency exchange is readily available at banks and hotels in the major cities.

Entry/Exit Requirements:

A U.S. passport valid for at least three months from the date of entry is required to enter and depart Honduras. A visa is not required, but tourists must provide evidence of return or onward travel. Parents should not rely on birth certificates for travel of their children; rather, they should obtain U.S. passports for infants and minors born in the U.S. prior to travel. U.S. citizens are encouraged to carry a photocopy of their U.S. passports with them at all times so that if questioned by local officials, proof of identity and U.S. citizenship are readily available to those officials.

For U.S. citizen children born in the United States to Honduran parents, Honduran Immigration provides an "evidence of continuance" (Constancia de Permanencia) stamp placed in the U.S. passport that allows the child to enter, depart, and remain in Honduras. Visitors are given a permit to remain in Honduras for 30 days. Honduran immigration may grant up to two thirty-day extensions for a total of 90 days. Thereafter, tourists must leave the country in order to qualify for a renewed visitor's permit. For more information concerning entry and exit requirements for Honduras, travelers may visit the Embassy of Honduras in Washington D.C. web site http://www.hondurasemb.org. On departure, visitors are required to pay an exit fee, either in U.S. dollars or in local currency. The current fee for international departures is USD $31.42. The fees are subject to change.

In an effort to prevent international child abduction, many governments have initiated special procedures at entry/exit points regarding the travel of minors. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian not present. Having such documentation on hand, even if not required, may facilitate entry/exit. Minors who are dual U.S.-Honduran nationals or who are resident in Honduras require notarized consent from both parents if traveling alone or in someone else's custody, or from the absent parent if traveling with only one parent. In cases where one parent has sole custody, the custodial parent must submit the custody decree to Honduran immigration upon departure.

For more information concerning entry and exit requirements, travelers may contact the Embassy of Honduras at 3007 Tilden Street N.W., Washington, D.C. 20008, telephone (202) 966-7702, or a Honduran consulate in Atlanta, Boston, Chicago, Houston, Jacksonville, Los Angeles, Miami, New Orleans, New York, Phoenix, San Francisco, San Juan or Tampa. The Honduran Embassy's e-mail address is embhondu@aol.com. Interested individuals may visit the Honduran Embassy's website for additional contact information through http://www.hondurasemb.org/. For tourist information or suggestions, please contact the Honduras Institute of Tourism at 1-800-410-9608 (in the United States) or at 1-800-222-TOUR (8687) (within Honduras only) or visit their website http://www.hondurastips.honduras.com/.

Dual Nationality:

Honduran law permits dual nationality only for minors under the age of 21 and those Honduran-born citizens who have become naturalized citizens of other countries. U.S. citizens who become Honduran citizens by naturalization are not considered to have dual nationality under Honduran law. Dual nationals, in addition to being subject to all Honduran laws affecting U.S. citizens, may be subject to other laws that impose special obligations on Honduran citizens. For more information, please contact Honduran Immigration in Tegucigalpa (tele-phone 504-238-5613), San Pedro Sula (telephone 504-550-3728), Roatan (telephone 504-445-1226), La Ceiba (telephone 504-442-0638), or Puerto Cortes (telephone 504-665-0582).

Safety and Security:

Political demonstrations sometimes disrupt traffic, but they are generally announced in advance and are usually peaceful. Travelers should avoid areas where demonstrations are taking place, and they should keep informed by following the local news and consulting hotel personnel and tour guides.

There have been kidnapping attempts and threats against U.S. citizens. For more information, we strongly encourage travelers to visit the U.S. Embassy's web site at http://honduras.usembassy.gov/ and click on Crime and Security Matters. There have also been incidents involving roadblocks and violence connected with land disputes that can delay travel, particularly in the north coast area near Trujillo.

The areas off both coasts of Honduras are the subject of maritime border disputes between Honduras and its neighbors. The Honduran Navy patrols these areas, and all private vessels transiting Honduran territorial waters should be prepared to be hailed and possibly boarded by Honduran military personnel to verify documentation. While the Honduran Navy previously used private vessels as patrol vessels, this is no longer the case. In the event that any vessel is hailed in Honduran waters in the Caribbean by a non-military vessel or any suspicious vessel and directed to prepare for boarding, the vessel should immediately contact the U.S. Coast Guard Operations Center by radio or INMARSAT at 305-415-6800. Anyone needing more information can also contact the U.S Embassy during working hours and request to speak with the U.S. Military Group (USMILGP) office.

While the Honduran side of the Honduras-Nicaragua border has been largely cleared of land mines, travelers should exercise caution there. For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov where the current travel information, including travel advisories, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime:

Crime is endemic in Honduras and requires a high degree of caution by U.S. visitors and residents alike. U.S. citizens are encouraged to follow local news reports.

Poverty, gangs, and low apprehension and conviction rates of criminals contribute to a high crime rate, including horrific acts of mass murder. Many men in Honduras carry firearms and machetes, and disputes are often settled with violence. Both violent and petty crime, including sexual assault, carjacking, kidnappings, muggings, and home invasions, are prevalent throughout the country. While crime affects everyone in Honduras, criminals have at times targeted persons, particularly those coming from airports and hotels, as well as wealthy-looking residents in San Pedro Sula, Tela, Trujillo, and Tegucigalpa. Twomen teams on medium-sized motorcycles often target pedestrians. There have also been reports of armed robbers traveling in private cars targeting pedestrians on isolated streets. The Honduran government has instituted a "zero tolerance" policy on crime. As part of this policy, the police sometimes patrol jointly with armed soldiers in major cities in an effort to reduce crime.

Fifty U.S. citizens have been murdered in Honduras since 1995, with a very significant recent increase in the number, and most cases remain unresolved. There are problems with the judicial process, including corruption, an acute shortage of trained personnel, equipment, staff, and financial resources. The Honduran law enforcement authorities' ability to prevent, respond to, and investigate criminal incidents and prosecute criminals remains limited. Honduran police generally do not speak English. The government has established a special tourist police in the resort town of Tela and other popular tourist destinations, including Tegucigalpa, San Pedro Sula, La Ceiba, and Roatan, but the number deployed is small and coverage is limited. Tourists in these cities should still remain vigilant for criminal elements as they visit these tourist sites.

The San Pedro Sula area has seen occasional armed robberies against tourist vans, minibuses, and cars traveling from the airport to area hotels, even sometimes targeting the road to Copan. Armed men have forced vehicles transporting tourists off the road and robbed the victims, occasionally assaulting the driver or passengers. Several U.S. citizens have recently been murdered in San Pedro Sula and the vicinity shortly after arriving in the country. Assaults in this area may be based on tips from sources at airport arrival areas so visitors are strongly urged to exercise caution in discussing travel plans in public areas.

Copan, the Bay Islands, and other tourist destinations have a lower crime rate than other parts of the country, but thefts, break-ins, assaults, and murders do occur. During a wave of home invasion robberies in Roatan in late 2005, assailants shot two foreign residents, killing one U.S. citizen. Exercise particular caution walking on isolated beaches, especially at night. Seven U.S. citizens have been murdered in Roatan since 1998, most recently in late 2005. Coxen Hole should be avoided after dark.

The Government of Honduras has a very limited presence in Northern Olancho, Colon and Gracias a Dios Departments, which is well known for lumber and narcotics smuggling and violence. Travelers in those areas should use extra caution.

Incidents of crime along roads in Honduras are common. There have been frequent incidents of highway robbery on a number of roads including Limones to La Union, Olancho (route 41) via Salama and northward to Esquipulas Del Norte. For more information, please see the section below on Traffic Safety and Road Conditions.

Travelers should always drive with their doors locked and windows rolled up to avoid potential robberies at traffic lights and other places, such as congested downtown streets. Avoid driving at night. All bus travel should be during daylight hours and on first-class conveyances, not on economy buses. Please pick taxis carefully, and note the driver's name and license number. Instruct the driver not to pick up other passengers, agree on the fare before you depart, and have small bills available for payment, as taxi drivers often do not make change.

Do not resist a robbery attempt. Most criminals have weapons, and most injuries and deaths have resulted when victims have resisted. Two foreign tourists were murdered in July 2002 while resisting an armed robbery on a public bus in which they were traveling. In 2004, an American citizen was murdered while attempting to flee an armed robbery in progress and another American was shot while resisting a carjacking. Two American citizens were murdered while resisting armed robberies in 2005.

Do not hitchhike or go home with strangers, particularly from nightspots. When ever possible, travel in groups of two or more persons. Use the same common sense while traveling in Honduras that you would in any high crime area of a major U.S. city. Do not wear excessive jewelry. Do not carry large sums of money, or display cash, ATM credit cards, or other valuables you do not need.

Avoid walking at night in most areas of Honduras. Do not hike alone in backcountry areas, or walk alone on beaches, historic ruins, or trails.

There have been incidents of armed assaults against private sailing vessels by criminals posing as fishermen off the northeast coast of Honduras, particularly in the numerous small islands northeast of the coast of the Department of Gracias a Dios. Sailors should contact the Coast Guard and yacht facility managers in their areas of travel for current information.

Individuals and groups should register their travel plans with the State Department via the Internet at the Department's secure web site: https://travelregistration.state.gov/. They may also wish to send passport, date of birth, and emergency contact information to the American Citizens Services Unit of the U.S. Embassy in Tegucigalpa via fax at 011-504-238-4357, prior to travel. Individuals as well as groups should always keep in their possession a photocopy of their U.S. passport data page and leave a copy at home with a friend or family member.

The theft abroad of a U.S. passport should be reported immediately to the U.S. Embassy in Tegucigalpa and to local police. If you are the victim of a crime while overseas, in addition to reporting to the local police, please contact the U.S. Embassy in Tegucigalpa or the Consular Agency in San Pedro Sula for assistance. The Embassy and Consular Agency staff can, for example, assist you to find appropriate medical care, to contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of most crimes is solely the responsibility of local authorities, Consular staff can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities:

Medical care in Honduras varies greatly in quality and availability. Outside Tegucigalpa and San Pedro Sula, medical care is inadequate to address complex situations. Support staff facilities and necessary equipment and supplies are not up to U.S. standards anywhere in Honduras. Facilities for advanced surgical procedures are not available. Wide areas of the country, including the popular tourist areas of the Bay Islands of Roatan, Utila, and Guanaja, do not have a general surgery hospital. Ambulance services are limited in major cities and almost non-existent elsewhere.

Scuba diving is popular in the Bay Islands, but the limited medical facilities there pose a special risk in the event of an emergency. There is a decompression chamber on Roatan and Utila for divers, but no advanced medical care on either island for diving related accidents.

Medical Insurance:

The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including emergency services such as medical evacuations.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the U.S. may cost thousands of dollars. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, ascertain whether payment will be made to the overseas healthcare provider or whether you will be reimbursed later for expenses you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure, "Medical Information for Americans Traveling Abroad ", available via the Bureau of Consular Affairs home page or auto fax: (202) 647-3000.

Other Health Information:

Mosquito-borne illnesses are an ongoing problem in Honduras. All persons traveling in Honduras, even for a brief visit, are at risk of contracting malaria. Take a prophylactic regimen best suited to your health profile. The country regularly suffers from outbreaks of dengue fever during the rainy season. Travelers should take precautions against being bitten by mosquitoes to reduce the chance of contracting such illnesses.

Severe air pollution, which can aggravate or lead to respiratory problems, often occurs throughout the country during the dry season due in large part to widespread forest fires and agricultural burning.

Individuals traveling to Honduras should ensure that all their routine vaccinations are up to date. Vaccination against Hepatitis A and Hepatitis B is strongly recommended. Travelers taking prescription medications should bring an adequate supply with them when coming to Honduras and ensure that they are properly labeled. Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Traffic Safety and Road Conditions:

Honduran road conditions differ significantly from those in the United States. The information below is provided for general reference only, and it may not be totally accurate in a particular location or circumstances. Because of crime and poor road conditions, driving can be very dangerous, and travelers should carry a cellular phone in case of an emergency. Travelers should exercise extreme caution while driving on isolated stretches of road and passing on mountainous curves. Rockslides are common, especially in the rainy season (May through December). Traffic signs, even on major highways, are often inadequate, and streets in the major cities are often unmarked. Travelers should always drive with their doors locked and windows rolled up to avoid potential robberies at traffic lights and other places such as congested downtown streets.

Major cities are connected by an inconsistently maintained, two-lane system of paved roads, and many secondary roads in Honduras are unpaved. During the rainy season, even major highways are often closed due to rockslides and flooding during heavy rains.

Some of the most dangerous stretches for road travel include: Tegucigalpa to Choluteca, because of dangerous mountain curves; El Progreso to La Ceiba, because of animal crossings and the poor condition of bridges from flooding; and Limones to La Union, Olancho (route 41) via Salama and northward to Saba. Locals also refer to this stretch of road as the "Corridor of Death" because of frequent incidents of highway robbery.

Route 39 through northern Olancho Department between Gualaco and San Esteban is highly dangerous and should be avoided.

Route 43 in northwest Olancho Department from Talanga to Olanchito via Yoro route 23 will become a primary route to the north coast when the remaining portions of the highway of the highway are paved, as is expected to occur in 2005.

The only recommended route to the north coast from the south is CA-5 to route 21 to CA-13 via Tela to La Ceiba and Trujillo.

Honduran roads are poorly lit and marked. Vehicles are often driven at night without adequate illumination, and animals and people wander onto the roads at all hours. For these reasons, and because of the high incidence of crime, the U.S. Embassy strongly discourages car and bus travel after dark.

Hijackings of private and commercial vehicles from the United States to Honduras have occurred. While Honduras and the United States have signed and ratified a Stolen Vehicle Treaty, existing Honduran laws protect good faith buyers (even of stolen vehicles) so the recovery and return of these vehicles to their original owners is not guaranteed. Vehicle insurance may mitigate loss; please check with the National Insurance Crime Bureau at http://www.nicb.org, private insurance carriers, and the web site information on "Commercial Vehicle Hijackings" at http://honduras.usembassy.gov/english/mission/sections/RSO/comveh_highsec.htm for more information.

For additional general information about road safety, including links to foreign government sites, please see the Department of State, Bureau of Consular Affairs home page at http://travel.state.gov/travel/tips/safety/safety_1179.html. For specific information concerning Honduran driving permits, vehicle inspection, road tax, and mandatory insurance, please contact the Honduran National Tourist Organization offices in New York via the Internet at http://www.hondurastips.honduras.com/.

Aviation safety and oversight:

The U.S. Federal Aviation Administration (FAA) has assessed the Government of Honduras as not being in compliance with ICAO international aviation safety standards for the oversight of Honduras's air carrier operations. For more information, travelers may visit the FAA's Internet web site at www.faa.gov/avr/iasa/index.cfm.

Severe air pollution often leads to the closing of some or all of Honduras's four international airports during the dry season. Some travelers have been compelled to travel by bus to neighboring countries in order to catch onward flights.

The one Honduran airline flying to the United States, AeroHonduras, leases its aircraft and crews from a U.S. company and is subject to U.S. regulation. For further information, travelers may contact the Department of Transportation within the United States at tel. 1-800-322-7873, or visit the FAA's Internet web site at: www.faa.gov/avr/iasa/.

Real Estate Investment:

U.S. citizens should exercise extreme caution before entering into any form of commitment to invest in property, particularly in coastal areas and the Bay Islands. Honduran laws and practices regarding real estate differ substantially from those in the United States, and there are many cases of fraudulent deeds and titles. In addition, the Honduran judicial system is weak and inefficient, often prolonging disputed cases for many years before resolution. Approximately 80% of the privately held land in the country is untitled. Americans have spent thousands of dollars in legal fees and years of frustration in trying to resolve property disputes, even in cases in which local attorneys and Honduran and U.S. real estate agents had given assurances to the investor. Violence has been used against Americans involved in disputed property cases. Potential investors should engage competent local legal representation before making any commitments. Investors should thoroughly check references and bona fides of attorneys and real estate agents.

Honduran law places certain restrictions on land ownership by foreigners in coastal and border areas. Squatters claim a number of properties owned by U.S. citizens. For further information on investing in property in Honduras, please review the State Department's Investment Climate Statement, part of the Country Commercial Guide at http://www.buyusa.gov/honduras/en/14.html. For information on contracting Honduran legal representation, please check with other investors. You may also refer to the list of attorneys available on the Embassy's homepage at http://honduras.usembassy.gov/. In all cases, please check references and bonafides.

Financial Market Investment:

Due to poor regulation and lack of guarantees, investment in the Honduran "Bolsa de Valores," or securities market, as well as banking institution bonds, fideicomisos (trusts), and certificates of deposit from uninsured financial institutions pose high risk to investors. Extreme caution should be exercised before and while undertaking such activities as American citizens have lost large sums of money through investments in such precarious markets. For further information on investing in Honduras, please review the State Department's Investment Climate Statement, part of the Country Commercial Guide at http://www.buyusa.gov/honduras/en/14.html.

Customs Regulations:

U.S. citizens, who intend to stay in Honduras for an extended period of time and who bring vehicles or household goods into the country, should consult Honduran customs officials prior to shipment. With the exception of "antique" cars, all vehicles imported into Honduras by foreigners must be less than seven (7) years old. For specific information regarding customs requirements, please contact the Embassy of Honduras in Washington, D.C. at: http://www.hondurasemb.org/ for more information.

Honduran customs authorities may enforce strict regulations concerning temporary importation into or export from Honduras of items such as antiquities, medications, and business equipment. For example, Honduran law prohibits the export of antiques and artifacts from pre-colonial civilizations. To protect the country's biodiversity, it is illegal to export certain birds, feathers, and other flora and fauna. For specific information regarding exportation requirements, please contact the Embassy of Honduras in Washington, D.C. at http://www.hondurasemb.org/.

The Government of Honduras is strictly enforcing the law that requires a Honduran permit for the importation of firearms into Honduras. Travelers must obtain a firearm importation permit from a Honduran Embassy, Consulate General or Consulate located in the U.S. prior to bringing firearms into the country. Please note that a U.S. governmentissued or airline-issued permit is not valid for importation of firearms into Honduras, and firearms that arrive without the requisite Honduran permit will be confiscated and the bearer will be prosecuted to the full extent of Honduran law.

Criminal Penalties:

While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Honduran laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Honduras are severe, and convicted offenders can expect long jail sentences and heavy fines.

Under the U.S. PROTECT Act of April 2003, it is a crime, prosecutable in the United States, for a U.S. citizen or U.S. legal permanent resident to engage in illicit sexual conduct in a foreign country with a person under the age of 18, whether or not the U.S. citizen or U.S. legal permanent resident intended to engage in such illicit sexual conduct prior to going abroad. For purposes of the U.S. PROTECT Act, illicit sexual conduct includes any commercial sex act in a foreign country with a person under the age of 18. The law defines a commercial sex act as any sex act, on account of which anything of value is given to or received by a person under the age of 18.

Under the Protection of Children from Sexual Predators Act of 1998, it is a crime to use the mail or any facility of interstate or foreign commerce, including the Internet, to transmit information about a minor under the age of 16 for criminal sexual purposes that include, among other things, the production of child pornography. This same law makes it a crime to use any facility of interstate or foreign commerce, including the Internet, to transport obscene materials to minors under the age of 16.

Disaster Preparedness:

Honduras is prone to severe and damaging weather during the June 1st to November 30th hurricane season. U.S. citizens are urged to monitor news media and U.S. National Hurricane Center at: www.nhc.noaa.gov for information on possible storms. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at: www.fema.gov.

Children's Issues:

International adoptions from Honduras are very limited. Current information on Honduran adoption procedures and the immigrant visa application process is available from the Consular Section of the U.S. Embassy. Prospective adoptive parents are urged to check with the Consular Section to be sure that all required documentation has been approved by the U.S. Bureau of Citizenship and Immigration Services in the Department of Homeland Security and their child's adoption is complete before traveling to Honduras to apply for their child's immigrant visa. Adoptive parents are also urged to carry with them complete adoption paperwork when traveling with their adopted child to, from, and within Honduras.

Honduras is a signatory to the Hague Convention on the Civil Aspects of International Child Abduction, but the U.S. Department of State has determined that it has failed to comply with its obligations under the Convention. No child has ever been returned to the United States from Honduras under the provisions of the Convention. For more information on international adoption of children and international parental child abduction, please refer to the Department of State's Internet site at http://travel.state.gov/family/family_1732.html or telephone 1-888-407-4747.

Registration/Embassy Location:

Americans living or traveling in Honduras are encouraged to register their presence through the State Department's travel registration website, https://travelregistration.state.gov/ and to obtain updated information on travel and security within Honduras. Americans without Internet access may register directly with the U.S. Embassy in Tegucigalpa. By registering, whether via the Internet or in person at the Embassy, American citizens make it easier for the Embassy to contact them in case of emergency.

The U.S. Embassy and Consulate are located at:
Avenida La Paz in Tegucigalpa, Honduras
Internet Web site: http://honduras.usembassy.gov/
Telephone: 011-504-236-9320 or 011-504-238-5114
For information on services for U.S. citizens, please ask for ext. 4400.
American Citizens Services Unit Fax: 011-504-238-4357

The Consular Agency in San Pedro Sula is located at:
Banco Atlantida Building–11th Floor
San Pedro Sula, Honduras
Telephone: 011-504-558-1580

The Consular Agent is available during limited hours to accept U.S. passport and U.S. Report of Birth applications for adjudication at the Embassy in Tegucigalpa, perform notarial services, and to assist U.S. citizens with emergencies. Please call for office hours. The Consular Agent does not provide visa information or services.

For more details about all U.S. Embassy and consular services in Honduras, please see the Embassy web site at: http://honduras.usembassy.gov/ or visit the Bureau of Consular Affairs web site at: http://travel.state.gov/.

International Adoption

January 2006

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family.

Disclaimer:

The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and our current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

General:

The Government of Honduras is strict in its application of adoption law. There are no private adoptions in Honduras. Adoptions in Honduras usually take from 6 months up to one year. Please be cautious in dealing with individuals who offer to facilitate or shortcut the adoption procedure; they cannot legally short-circuit the process. Adoption agencies are required to register with IHNFA. If they are not registered, IHNFA cannot assist the agencies in the adoption process.

Honduran Adoption Authority:

All adoptions must go through the Instituto Hondureño del Niño y la Familia, also known as "IHNFA", which is a social welfare agency charged by the Honduran government with overseeing local and international adoptions.

Honduran Adoption Procedures:

Advance Processing- A US citizen(s) who plans to adopt a foreign orphan but does not yet have a specific child in mind, must file an Application for Advance Processing of Orphan Petition (Form I-600A) with the stateside US Bureau of Citizenship and Immigration Services in the Department of Homeland Security (BCIS) office having jurisdiction over their place of residence as soon as a decision to adopt is made.

Eligibility for Advance Processing- An application for advance processing may be filed by a married, United States citizen of any age or his or her spouse of any age, or an unmarried United States citizen who is at least 24 years old at the time he or she files the advanced processing application, and at least 25 years old at the time he or she files the orphan petition. The spouse of the United States citizen may be a citizen or an alien. An alien spouse must be in lawful immigration status if residing in the United States.

Form Used for Advance Processing- Form I-600A, Application for Advance Processing of Orphan Petition: This form is salmon or peachcolored. The instructions to this form contain important information and should be read carefully. All necessary documents that must accompany the form are listed. Current filing fee is $525.00.

Decision - I-600A approved petitions are valid for eighteen (18) months from the date of approval. A Notice of Favorable Determination Concerning Application for Advance Processing of Orphan Petition (Form I-171H), is sent to the prospective adoptive parent(s). This decision, however, does not guarantee that the orphan petition(s) to be filed will be approved. An orphan petition may still be denied because the child does not qualify as an orphan or for other proper cause.

Steps To Complete An Adoption in Honduras:

1) File a petition to adopt a child at the IHNFA. The IHNFA will provide you or your attorney an Adoption Request Form, that must be presented together with the above listed translated and authenticated certified documents (you must provide two sets. Once your application is reviewed and all requirements are met, your request will be placed on their list of applicants until a child is assigned to you (this may take a year). You cannot choose a particular child. You may refuse to accept the child assigned to you, provided that you have an acceptable reason for doing so. However, if you refuse a second child assigned to you, adoption proceedings will be terminated. Once IHNFA assigns the child, the prospective adoptive parent(s) must come to Honduras to meet the child, and be psychologically and socially evaluated by the IHNFA social worker and staff psychologist. The results of these evaluations will be used in the preparation of a report approving or denying the adoption to the Family Court. At this point the adoptive child may be placed with a foster care family at your own expense. The IHNFA will place a child in your care only if you will remain in Honduras until the adoption has been completed.

2) File a petition to adopt a child at the Honduran Family Court. Once you have completed the IHNFA's procedure, the prospective parents must appear personally to file a petition to adopt at the Family Court. Once the Court has reviewed your petition and determined that you meet the legal requirements to adopt, they will request IHNFA to provide them with a formal report on your social, psychological and economic suitability to adopt. When the Court receives the IHNFA's report and proof of publications, they will take your case under advisement. If all is in order, a final adoption decree will be issued within about three weeks.

3) Notarize the Court's Final Adoption Decree. Your attorney must notarize the final adoption decree, and a Public Deed will be executed. You or your attorney must take the Court Final Adoption Decree, the Public Deed and proof of publication to the Civil Registrar's office to register your child and to obtain a new birth certificate showing your child's new name and listing you and your spouse (if applicable) as parents. An adoption certificate will also be issued.

Age and Civil Status Requirements:

The Honduran Family Code states that one member of the adoptive couple must be 25 years old, but no more than 50 years of age. Single persons who meet the age requirements may adopt. In the case of a married couple, both partners must petition for the adoption. The child to be adopted must be at least 15 years younger than the youngest member of the adopting couple. The initial adoption petition must be presented in person by the prospective adoptive parent(s). It cannot be done through an intermediary. In practical terms, this means that both members of an adoptive couple must come to Honduras. Foreigners who are not permanent legal residents of Honduras must obtain a written "follow up certification" from a US adoption agency which is licensed and duly registered with the Instituto Hondureño del Niño y la Familia (IHNFA). The certification must state that the Agency will check periodically on the wellbeing of the child until s/he reaches the age of fourteen, provide written reports to the IHNFA to ensure that the adoptive parents meet their obligations to the child.

Adoption Agencies and Attorneys:

You will need to hire a Honduran attorney since only an attorney may present the adoption petition to the Courts. Most adoption agencies in the United States that are registered with the IHNFA have contracts with designated attorneys in Honduras. However, in most cases, you can choose to work with a different attorney. The Embassy has a list of attorneys who are bilingual; however, the Embassy cannot recommend lawyers or assume responsibility for their professional performance. The Consulate maintains a notebook of letters from parents who have adopted in Honduras available for review that may be useful in selecting an attorney. Please review current reports online at travel.state.gov/family for a list of agencies.

Honduran Documentary Requirements:

• BCIS approval to adopt a child (Form I-171H).
• Family photographs
• Copy of applicant(s) passport(s)
• Applicant(s) birth certificate(s)
• Applicants marriage certificate
• Applicant(s) certificate(s) of good health from licensed physician including laboratory urine and stool exams and blood tests, including for AIDS.
• Applicant(s) certificate(s) of good conduct from local police.
• Applicant(s) verification of employment specifying position, salary, length of service and benefits.
• Copy of adoption law in applicant(s) state of residence.
• Two recent, color photographs of applicant(s) home front view and neighborhood.
• Three letters of reference from recognized and respected members of applicant(s) local community (such as government, school or church officials).
• Certified bank statements giving the status of applicant(s) account.
• Certified copy of the title to any property the applicant(s) may own.
• Home study prepared by an authorized and licensed social welfare agency located near the place where applicant(s) reside.
• A "follow up certification" from the adoption agency, who will oversee applicant(s) adoption until the child reaches the age of 14.
• Written certification from the nearest Honduran consulate that applicant(s) have met all state adoption requirements and that the adoption agency handling your case is licensed to practice in that state.

*All documents must be translated into Spanish. They must also be authenticated by a Honduran Consulate in the U.S. and then by the Ministry of Foreign Affairs and Ministry of Government and Justice in Honduras. Authentication usually requires at least three to four weeks and sometimes longer. The adoptive parents or legal representatives are responsible for taking the authenticated documents to the Ministry of Foreign Affairs and the Ministry of Justice*

U.S. Immigration Requirements:

A Honduran child, even if adopted by an American citizen, must obtain an immigrant visa before he or she can enter the U.S. as a lawful permanent resident. Please see the International Adoption section of this book for more details and review current reports online at travel.state.gov/family.

Honduran Embassy and consulates in U.S.:

Embassy of Honduras
Consular Section
Washington, DC 20008
Tel: (202) 966-7702

Honduras also has Consulates in Los Angeles, California; San Francisco, California; Jacksonville, Florida; Miami, Florida; Chicago Illinois; Baton Rouge, Louisiana; New Orleans, Louisiana; Newton, Massachusetts; New York, New York; Houston, Texas.

Honduras also has honorary consuls in Burlingame, California; San Diego, California; Denver, Colorado; Coral Gables, Florida; Gainesville, Florida; Atlanta, Georgia; Baltimore, Maryland; Minneapolis, Minnesota; St. Louis, Missouri; Rochester, New York; Cleveland, Ohio; Philadelphia, Pennsylvania; Cayey, Puerto Rico; San Juan, Puerto Rico; Providence, Rhode Island; San Antonio, Texas; and Seattle, Washington. (Honorary Consuls may perform authentication's that are required to complete adoptions in Honduras).

U.S. Consulates in Honduras:

The Consular Section is located at:
US Consulate Honduras
Unit 2909
APO AA 34022
Phone: (504) 236-9320 X 2426
Fax: (011) (504) 237-1792
Hours: 8-5 PM

US Bureau of Citizenship and Immigration Services in the Department of Homeland Security
Unit 2901; APO AA 34022
Tel: (011) (504) 236-9320 X 2711/2716
Fax: (011) (504) 236-9107
Hours: 8 am-12 PM

Penalties for "Baby Buying":

Under Honduran law, all children given up for adoption must be unconditionally abandoned to the courts. The intent of this provision is to eliminate abuses connected with the former practice of abandoning children to attorneys. According to the new law, a parent, legal representative of a child, or any other person who sells, buys, receives, or promises payment or reward for a child to be given up for adoption will be penalized with three years and one day in prison.

Fees:

Legal fees normally run from $6,000 to $8,000 but sometimes can be several thousand dollars more. For your own protection, you should negotiate all fees with your attorney before beginning the adoption process and specify all services to be included in the fee e.g., attorney's expenses, translation services, court fees, authentication's, etc. US Citizens have suggested that clients not pay fees in full in advance since the attorney would then have no incentive to finish the adoption quickly. There is little recourse in the event of a dispute (please see the Embassy's Consular Information Sheet warnings on transactions and disputes). Children who are eligible for adoption are placed in the IHNFA's care until adoptive parents have been selected; at which time they may be transferred to a foster home.

Additional Information:

Prospective adoptive parents are strongly encouraged to consult BCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions.

Questions:

Specific questions regarding adoption in Honduras may be addressed to the Consular Section of the U.S. Embassy or Consulate in Honduras. You may also contact the Office of Children's Issues, SA-29, 2201 C Street, NW, U.S. Department of State, Washington, DC 20520-2818, telephone (202) 736-7000 with specific questions.

HONDURAS

Compiled from the September 2004 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Honduras

PROFILE

Geography

Area: 112,090 sq. km. (43,278 sq. mi.); about the size of Louisiana.

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: (2004 est.) 6.8 million.

Growth rate: (2004 est.) 2.24%.

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: 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 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 (2003)

GDP: $17.46 billion.

Growth rate: 2.5%.

Per capita GDP: $2,600.

Natural resources: Arable land, forests, minerals, and fisheries.

Agriculture: (11% 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.

Trade: Exports—$1.37 billion: apparel, coffee, shrimp, bananas, palm oil, gold, zinc/lead concentrates, soap/detergents, melons, lobster, pineapple, lumber, sugar, and tobacco. Major market—U.S. (69%). Imports—$3.11 billion: fabrics, yarn, machinery, chemicals, petroleum, vehicles, processed foods, metals, agricultural products, plastic articles, and paper articles. Major source—U.S. (53%).

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. He named the area "Honduras" (meaning "depths") for the deep water off the coast. Spaniard Hernan Cortes arrived in 1524. The Spanish founded several settlements along the coast, and Honduras formed part of the colonial era Captaincy General of Guatemala. The cities of Comayagua and Tegucigalpa developed as early mining centers.

HISTORY

Independence

Honduras, along with many 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. Social and economic differences between Honduras and its regional neighbors exacerbated harsh partisan strife among Central American leaders and brought on the federation's collapse in 1838. Gen. Francisco Morazan—a Honduran national hero—led unsuccessful efforts to maintain the federation, and restoring Central American unity remained the chief aim of Honduran foreign policy until after World War I.

Since independence, Honduras has been plagued with nearly 300 incidents of unrest, including internal rebellions, civil wars, and changes of government—more than half of which occurred during the 20th century. The country traditionally lacked both an economic infrastructure and social and political integration. Its 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.

During the relatively stable years of the Great Depression, authoritarian Gen. Tiburcio Carias Andino controlled Honduras. His ties to dictators in neighboring countries and to U.S. banana companies helped him maintain power until 1948. By then, provincial military leaders had begun to gain control of the two major parties, the Nationalists and the Liberals.

From Military to Civilian Rule

In October 1955—after two authoritarian administrations and a 1954 general strike by banana workers on the north coast—young military reformists staged a palace coup that installed a provisional junta and paved the way for constituent assembly elections in 1957. This assembly appointed Dr. Ramon Villeda Morales as President and transformed itself into a national legislature with a 6 year term. The Liberal Party ruled during 1957-63. At the same time, the military took its first steps to become a professional institution independent of leadership from any one political party, and the first class of the newly created military academy graduated in 1960. In October 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. A civilian President—Ramon Cruz of the National Party—took power briefly in 1970 but proved unable to manage the government. In December 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.

Gen. Lopez's successors continued armed forces modernization programs, built army and security forces, and concentrated on Honduran Air Force superiority over its neighbors. The regimes of Gen. Melgar Castro (1975-78) and Gen. Paz Garcia (1978-83) 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.

Following the overthrow of Anastasio Somoza in Nicaragua in 1979 and general instability in El Salvador at the time, the Honduran military accelerated plans to return the country to civilian rule. A constituent assembly was popularly elected in April 1980, and general elections were held in November 1981. A new constitution was approved in 1982, and the Liberal Party government of President Roberto Suazo Cordoba took office following free and fair elections.

Suazo relied on U.S. support to help during a severe economic recession which was the result of regional instability caused by the revolutionary Sandinista government in Nicaragua and the chaos of the brutal civil war in El Salvador. Close cooperation on political and military issues with the United States was complemented by 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 November 1985 election approached, the Liberal Party had difficulty settling on a candidate, and 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 January 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, Rafael Callejas won the presidential election, taking office in January 1990. Callejas concentrated on economic reform, reducing the deficit,

and taking steps to deal with an overvalued exchange rate and major structural barriers to investment. He began the movement to place the military under civilian control and laid the groundwork for the creation of the public ministry (attorney general's office).

Despite his administration's economic reforms, 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 over National Party contender Oswaldo Ramos Soto, with Reina winning 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 and was successful in increasing civilian control over the armed forces and transferring the police from military to civilian authority.

Reina also restored national fiscal health by substantially increasing Central Bank net international reserves, reducing inflation, restoring economic growth, and, perhaps most importantly, holding down spending.

Carlos Roberto Flores Facusse took office on January 27, 1998, as Honduras' fifth democratically elected President since democratic institutions were restored in 1981. Like three of his four predecessors, Flores was a member of the Liberal Party. He was elected by a 10% margin over his main opponent, National Party nominee Nora de Melgar. Upon taking office on January 27, 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. The Honduran Government agreed to a new transparent process to manage relief funds, which included significant donor oversight. This open process greatly facilitated the relief and reconstruction effort. President Flores and his administration successfully managed more than $600 million in international assistance. Civil society's role in the government-coordinated reconstruction process was lauded internationally. President Flores also moved judicial and penal reforms forward. He established an anticorruption commission, supported passage of a new penal code based on the oral accusatorial system, and saw passage of a law that created an independent Supreme Court. Flores cemented the transition from military to civilian rule by eliminating the military's commander in chief position, and by signing a law that established a civilian Minister of Defense with formal authority over the military.

Ricardo Maduro Joest of the National Party was elected to the Honduran presidency on November 25, 2001, outpolling the Liberal candidate, Rafael Pineda Ponce, by 8 percentage points. He was inaugurated on January 27, 2002. The elections, characterized by international observer teams as free, fair, and peaceful, reflected the maturing of Honduras' democratic institutions. During his campaign, President Maduro promised to reduce crime, reinvigorate the economy, and fight corruption. Working to fulfill this promise, 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 problem. While the initial result of this policy was overwhelmingly positive, the policy appears to have had only a minimally positive long-term effect on the country's crime rate. President Maduro has been a strong supporter of the global war on terrorism and joined the U.S.-led coalition in Iraq with a contribution of 370 troops. Under President Maduro's guidance, Honduras also participated in the successful Central America Free Trade Agreement talks and actively promoted greater Central American economic integration.

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, 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, human rights and civil liberties are reasonably well protected. There are no known political prisoners in Honduras, and the privately owned media frequently exercises its right to criticize without fear of reprisals. Organized labor now represents approximately 8% of the work force and its economic and political influence has declined. Honduras held its sixth consecutive democratic elections in November 2001, to elect a new president, unicameral Congress, and mayors. For only the second time, voters were able to cast separate ballots for each office, and for the first time, voters denied the president elect's party an absolute majority in the Congress. The incidence of cross voting between presidential and congressional candidates was marked.

Political Parties

The two major parties—the Liberal Party and the National Party—run active campaigns throughout the country. Their ideologies are mostly centrist, with diverse factions in each centered on personalities. The three smaller registered parties—the Christian Democratic Party, the Innovation and National Unity Party, and the Democratic Unification Party—have increased their political muscle in the National Congress by doubling their representation in the 2001 elections. Despite significant progress in training and installing more skillful advisers at the top of each party ladder, electoral politics in Honduras remain traditionalist and paternalistic.

Principal Government Officials

Last Updated: 10/4/04

President: Maduro , Ricardo
First Vice Pres.: Williams , Vicente
Second Vice Pres.: De Lopez , Armida
Third Vice Pres.: Diaz, Alberto
Min. of Agriculture & Livestock: Jimenez , Mariano
Min. of Culture, Arts, & Sports:
Min. of Defense: Breve , Federico
Min. of Education: Martinez Lozano , Roberto
Min. of Finance: Chong Wong , William
Min. of Foreign Relations: Rosa Bautista , Leonidas
Min. of Industry & Commerce: Garcia , Norman
Min. of Interior & Justice: Hernandez Alcerro , Jorge Ramon
Min. of Labor: Leitzelar , German
Min. of Natural Resources & Environment: Panting , Patricia
Min. of the Presidency: Cosenza , Luis
Min. of Public Employees' Retirement & Pension (INJUPEMP): Lupiac , David Mendoza
Min. of Public Health: Lizardo , Elias
Min. of Public Works, Transportation, & Housing: Carranza , Jorge
Min. of Security: Alvarez , Oscar
Min. of Tourism: De Pierrefeu , Thiery
Min. Without Portfolio (health sector): Vargas , Carlos
Min. Without Portfolio (housing sector): Kafati , Johnny
Min. Without Portfolio (investment promotion sector): Atala , Camilo
Min. Without Portfolio (public service sector): Kafati , Eduardo
Min. Without Portfolio (strategic affairs and communication sector): Medina, Ramon
Pres., Central Bank: Mondragon de Villar , Maria Elena
Ambassador to the US: Canahuati , Mario Miguel
Permanent Representative to the UN, New York: Acosta Bonilla , Manuel

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. Industrial development has been limited, and historically the economy has been dependent on exports of coffee and bananas. In the past 15 years, however, the economy has been diversified, with the development of non-traditional exports such as cultivated shrimp, melons, and tourism, and the establishment of a growing maquila industry (primarily, assembly for re-export of textiles and apparel). Investment incentives aimed at attracting foreign capital in export industries have been introduced. Meanwhile the coffee industry has suffered from low world prices, and banana production has yet to reach pre-Hurricane Mitch levels. Coffee and bananas now account for less than 15% of Honduran export earnings. Honduras also has extensive forest, marine, and mineral resources, although widespread slash-and-burn agricultural methods continue to destroy Honduran forests.

Family remittances from Hondurans living abroad (mostly in the United States) rose 19% to $860 million in 2003, and are soon expected to pass the maquila sector as the country's largest source of foreign exchange.

The exchange rate as of July 2004 was 18.26 Honduran Lempira to the dollar, compared to 17.18 Lempira to the dollar a year earlier. The currency has been undergoing a steady and controlled devaluation of roughly 6% per year for the last several years. Inflation, as measured by the consumer price index, was 7.7% in 2003, identical to the rate of 2002 and considerably lower than the double-digit inflation rates of the 1990s. International reserves, which had fallen from $1.235 billion at the end of 2002 to $1.16 billion at end of 2003, rebounded to $1.248 million by April 2004.

Unemployment was officially estimated at around 27.5% in 2003. The economic slowdown in the United States in 2001 and 2002 caused a downturn in the growth of Honduras' maquila sector, but investment and employment revived in 2003. Employment in the sector is almost back to its 2000 peak of 125,000 workers.

In July 2000, Honduras reached its decision point under the Heavily Indebted Poor Countries (HIPC) initiative, qualifying the country for interim multilateral debt relief. However, fiscal problems soon derailed the government's International Monetary Fund (IMF) program and put the HIPC debt relief on hold. After the Honduran Government took several important measures to control government spending and improve its fiscal situation, the IMF approved a new 3-year Poverty Reduction and Growth Facility program in February 2004. This in turn made possible the signing of a debt relief agreement with Paris Club creditors in April 2004, and positions the country for the HIPC completion point as of February 2005.

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 syndicates. Honduras supports efforts at regional integration and deployed troops to Iraq in support of Operation Iraqi Freedom. However, the resolution of the civil wars in El Salvador and Nicaragua and across-the-board budget cuts made in all ministries greatly reduced funding for the Honduran armed forces, and the abolition of the draft created staffing gaps in the now all-volunteer armed forces. The military is now far below its authorized strength. In January 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), and the Central American Security Commission (CASC). During 1995-96, Honduras, a founding member of the United Nations, for the first time served as a nonpermanent member of the UN Security Council. Honduras is currently a member of the UN Human Rights Commission.

Honduras is a strong proponent of Central American cooperation and integration, and is working towards the implementation of a regional customs union by the end of 2004. The agreement 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 and the emigration of some 300,000 Salvadorans to Honduras in search of land and employment. The catalyst was nationalistic feelings aroused by a series of soccer matches between the two countries, but the roots of the conflict lay in local disputes over land ownership and usage. The two countries formally signed a peace treaty on October 30, 1980, which put the border dispute before the International Court of Justice (ICJ). In September 1992, the Court awarded most of the disputed territory to Honduras. 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. Honduras and El Salvador maintain normal diplomatic and trade relations; however, they continue to disagree over the status of their maritime borders in the Gulf of Fonseca.

Honduras and Nicaragua had tense relations throughout 2000 and early 2001 due to a maritime boundary dispute off the Atlantic Coast. Relations between the two countries have since improved, although some animosity remains.

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 a nonpermanent member of the UN Security Council, Honduras played a very helpful role in 1996, most notably in advancing the process of selecting a new UN Secretary General during its October presidency of the Council. The United States also continued to be able to count on Honduras' strong support in the war on terrorism.

The United States favors stable, peaceful relations between Honduras and its Central American neighbors. During the 1980s, Honduras supported U.S. policy in Central America 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 troops for the reconstruction of Iraq, and remains interested in participating in other UN peacekeeping missions.

The United States is Honduras' chief trading partner, supplying 53% of its imports and purchasing 69% of its exports in 2003. 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. The United States encourages U.S. investment that contributes to Honduran development and bilateral trade.

U.S. direct investment in Honduras is valued at $601 million, about 44% of the total foreign direct investment (FDI) in the country of $1.37 billion. FDI flow into Honduras in 2003 totaled $176 million, with the United States leading the way with investments totaling $145 million, or 82% of the total FDI. The largest U.S. investments in Honduras are in the maquila sector, in which apparel and textile export revenues totaled $2.53 billion in 2003. There are also significant U.S. investments in fruit production—particularly bananas, melons, and pineapple—tourism, energy generation, shrimp culture, 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.

From January to December of 2003, the United States negotiated a free trade agreement with Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Further negotiations in 2004 brought the Dominican Republic into the agreement as well. The agreement was signed in May 2004, but must be ratified by the U.S. Congress and by those of the other participating countries before it enters into force. The agreement, known as the U.S.-Central America Free Trade Agreement or CAFTA, will eliminate tariffs and other barriers to trade in goods, services, agricultural products, and investments. Additionally, CAFTA is seen as a mechanism to solidify democracy, encourage greater regional integration, and provide safeguards for environmental protection and labor rights.

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 the training and exercises.

As of early 2001, the U.S.-trained Honduran demining unit had cleared nine major minefields measuring about 333,000 square meters, and more than 2,200 mines had been destroyed. This project is on track to be completed in 2004, at which point Honduras will be declared mine free.

U.S. Policy Toward Honduras

U.S. policy toward Honduras is aimed at consolidating stable democracy with a justice system that protects human rights and promotes 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 11,000 Americans residing there. More than 150 American companies operate in Honduras.

Economic and Development Assistance

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 $45 million in fiscal year 2004. Over the years, U.S. foreign assistance has helped advance such objectives as fostering democratic institutions, increasing private sector employment and income, helping Honduras fund its arrears with international financial institutions, providing humanitarian aid, increasing agricultural production, and providing loans to microbusinesses.

October 1998's Hurricane Mitch—the worst natural disaster ever to strike the Western Hemisphere—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. The vast majority of the U.S. reconstruction projects were scheduled to finish by December 31, 2001, with the exception of some water and sanitation and transparency projects that were extended for another 14 months. 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.

New and existing U.S. economic programs—some with proposed enhancements that have taken on even greater importance since the hurricane—include the Caribbean Basin Economic Recovery Act, Overseas Private Investment Corporation financing for private investment and insurance against risks of war and expropriation, U.S. Trade Development Agency grant loans for pre-feasibility studies of projects with U.S. product and services export potential, and U.S. Export-Import Bank short and medium-term financing for U.S. exports to Honduran importers. All of these provide greater economic opportunity for U.S. and Honduran businessmen and women.

The Peace Corps has been active in Honduras since 1962, and currently the program is one of the largest in the world. In 2004, there were 223 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 through the International Criminal Training Assistance Program.

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 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. While JTF-Bravo has been involved in several multilateral exercises and numerous smaller humanitarian deployments, it played an absolutely critical role in helping the United States to respond to Hurricanes Mitch and Keith, and the earthquakes in El Salvador by saving lives, repairing critical infrastructure, and in meeting high priority health and sanitation needs. U.S. forces also delivered millions of dollars worth of privately donated goods to those in need.

U.S. Business Opportunities

U.S. Department of Commerce trade data show that bilateral trade between the two nations totaled $5.83 billion in 2002, the most recent year for which statistics are available. Exports of goods and services from the U.S. totaled $2.56 billion 2002, and Honduran exports to the U.S. totaled $3.26 billion. U.S. investors account for nearly two-thirds of the estimated stock of $1.3 billion in foreign direct investment in Honduras. 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. 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

TEGUCIGALPA (E) Address: Avenida La Paz, Tegucigalpa, Honduras; APO/FPO: American Embassy, APO AA 34022; Phone: (504) 236-9320; Fax: (504) 236-9037; Work-week: M–F, 8-5 local time; Website: www.usmission.hn

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

Caribbean/Latin American Action
1818 N Street, NW
Suite 310
Washington, DC 20036
Tel: 202-466-7464; Fax: 202-822-0075

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://www.ita.doc.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

Consular Information Sheet

March 10, 2004

Country Description: Honduras is a democracy with a developing economy. The national language is Spanish, although English is often spoken in the Bay Islands. The climate is generally pleasant and temperate, with dry and wet seasons. The terrain ranges from mountainous to coastal beaches and jungle lowlands. Hotels and restaurants are generally adequate in the capital city of Tegucigalpa, San Pedro Sula, Tela, La Ceiba, the Bay Islands and the Copan ruins. Currency exchange is readily available at banks and hotels in the major cities.

Entry/Exit Requirements: All U.S. citizens must have a valid U.S. passport to enter and depart Honduras. A visa is not required, but tourists must provide proof of return or onward travel.

Parents should not rely on birth certificates for travel of their children; rather, they should obtain U.S. passports for infants and minors born in the U.S. prior to travel. For U.S. citizen children born in the United States to Honduran parents, Honduran Immigration provides an "evidence of continuance" (Constancia de Permanencia) stamp placed in the U.S. passport that allows the child to enter, depart, and remain in Honduras. Visitors are given a permit to remain in Honduras for 30 days. Honduran immigration may grant up to two thirty-day extensions for a total of 90 days. Thereafter, tourists must leave the country prior to reentering.

On departure, visitors are required to pay an exit fee, either in dollars or in local currency, at the airline counter. The current fee for international departures is $25 per visit, and an additional $2 agricultural inspection fee has recently been added. This fee is subject to change.

In an effort to prevent international child abduction and trafficking in persons, many governments have initiated special procedures at entry/exit points regarding the travel of minors. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian not present. Having such documentation on hand, even if not required, may facilitate entry/exit. Minors who are dual U.S.-Honduran nationals or who are resident in Honduras require notarized consent from both parents if traveling alone or in someone else's custody, or from the absent parent if traveling with only one parent. In cases where one parent has sole custody, the custodial parent must submit the custody decree to Honduran immigration upon departure.

For more information concerning entry and exit requirements, travelers may contact the Embassy of Honduras at 3007 Tilden Street N.W., Washington, D.C. 20008, telephone: (202) 966-7702; or a Honduran consulate in Atlanta, Boston, Chicago, Houston, Jacksonville, Los Angeles, Miami, New Orleans, New York, Phoenix, and San Francisco. The Honduran Embassy's e-mail address is embassy@honduras.emb.org, and interested individuals may visit the Embassy's website for additional contact information through http://www.embassy.org/ or http://www.state.gov/. For tourist information or suggestions, please contact the Honduras Institute of Tourism at 1-800-410-9608 (in the United States), at 1-800-222-TOUR (8687) (within Honduras only) or visit their website http://www.hondurastips.honduras.com/. The Honduran Ministry of Tourism's website is http://www.letsgohonduras.com.

Dual Nationality: Dual nationality is only permissible for minors under the age of 21 and those Honduran born citizens who have become naturalized citizens of other countries. U.S.-born citizens who have become Honduran citizens by naturalization are not considered by the Government of Honduras to have dual nationality, which considers them to be solely Honduran. U.S. citizens do not lose their nationality if they become residents of Honduras. Dual nationals, in addition to being subject to all Honduran laws affecting U.S. citizens, may be subject to other laws that impose special obligations on Honduran citizens. For more information, please contact Honduran Immigration in Tegucigalpa (telephone 238-5613), San Pedro Sula (telephone 550-3728), Roatan (telephone 445-1226), La Ceiba (telephone 442-0638), or Puerto Cortes (telephone 665-0582). Please see the Bureau of Consular Affairs home page on the Internet at http://travel.state.gov for our Dual Nationality flyer.

Safety and Security: Political demonstrations occur sporadically. They can disrupt traffic, but they are generally announced in advance and are usually peaceful. Travelers should avoid areas where demonstrations are taking place, and they should keep informed by following the local news and consulting hotel personnel and tour guides.

There have been kidnapping attempts and threats against a few U.S. citizens. For more information, we strongly encourage travelers to visit the U.S. Embassy's website at www.usmission.hn/english/mission/security.htm and click on Personal Security Measures – Kidnap Briefing. There have also been incidents involving roadblocks and violence connected with land disputes that can delay travel, particularly in the north coast area near Trujillo.

The areas off both coasts of Honduras have been the subject of maritime border disputes between Honduras and its neighbors. The Honduran Navy patrols these areas, and all private vessels transiting Honduran territorial waters should be prepared to be hailed and possibly boarded by Honduran military personnel to verify documentation. The Honduran Navy uses private vessels as well as military vessels to patrol Honduran waters. In the event that any vessel is hailed in Honduran waters in the Caribbean by a non-military vessel or any suspicious vessel and directed to prepare for boarding, the vessel should immediately contact the U.S. Coast Guard Operations Center by radio or INMARSAT at 305-415-6800. Anyone needing more information can also contact the U.S Embassy and request the U.S. Military Group (USMILGP) Duty Officer.

While the Honduran side of the Honduras-Nicaragua border has been largely cleared of land mines, travelers should exercise caution in the vicinity of the border because some land mines, scattered by flooding during Hurricane Mitch in October 1998, may still exist in the area.

Crime: The security situation in Honduras requires a high degree of caution, and U.S. citizens are encouraged to follow local news reports (Please see link to sources at http://www.usmission.hn/.) and contact the Honduran Embassy in Washington, D.C. and the U.S. Embassy in Tegucigalpa for current conditions. Poverty, gangs, and low apprehension and conviction rates of criminals contribute to a high crime rate. Many men in Honduras carry firearms and machetes, and disputes are sometimes settled with violence. Both violent and petty crime is prevalent throughout the country. While crime affects everyone in Honduras, criminals have at times targeted persons, particularly those coming from airports (a cycle of armed robberies followed by brief increases in police patrols) and hotels, as well as wealthy-looking residents in San Pedro Sula, Tela, Trujillo, and Tegucigalpa. Street crime is a principal concern, with thefts, including purse snatching, pickpocketing, assaults, and armed robberies on the rise in urban areas. There has been an increase in street robberies by twomen teams on medium-sized motorcycles targeting pedestrians. There have been some incidents of sexual assault. Carjackings, kidnappings, muggings, and home invasions are not uncommon. The government has instituted a "zero tolerance" policy on crime. As part of this policy, the police patrol jointly with armed soldiers in major cities in an effort to reduce crime.

Thirty-five U.S. citizens have been murdered in Honduras since 1995, and most cases remain unresolved. There are problems with the judicial process, including an acute shortage of trained personnel, equipment, staff, financial resources, and reports of corruption. The Honduran law enforcement authorities' ability to prevent, respond, investigate, apprehend, file Interpol reports, and prosecute criminal incidents remains limited. Honduran police generally do not speak English. The government has recently established a special tourist police in the resort towns of Tela and La Ceiba and plans to expand this force to other popular tourist destinations.

The San Pedro Sula area has seen occasional armed robberies against tourist vans, minibuses and cars traveling from the airport to area hotels, infrequently targeting the road to Copan. Vehicles force the transport off the road, and then men with AK-47s rob the victims, occasionally assaulting the driver or passengers. Robberies in this area may be based on tips from sources at airport arrival areas associated with large amounts of luggage/supplies usually for groups – not average tourists; please exercise caution in discussing travel plans in public.

Copan, the Bay Islands and other tourist destinations have a lower crime rate than other parts of the country, but petty thefts and assaults do occur. Specifically, visitors to Copan and the Bay Islands have experienced some petty thefts and, on Roatan Island, robbers have targeted homes and longer-term leased residences. Hotels and pensions are considered safer. U.S. citizens visiting the islands should exercise particular caution around sparsely inhabited coastal areas and should avoid walking on isolated beaches, especially at night. While incidents of serious violent crime in these regions are infrequent, three U.S. citizens have been murdered in Roatan since 1998. However, all the victims in Roatan were either residing in Roatan and/or involved in real estate or commercial ventures. Coxen Hole should be avoided after dark.

Although not a primary tourist destination, the northern part of the Department of Olancho is known for lumber and narcotics smuggling and violence. Travelers in that area should use extra caution. See the description of highways/areas to be avoided for details.

Incidents of crime along roads in Honduras are common. There have been frequent incidents of highway robbery on a number of roads including Limones to La Union, Olancho (route 41) via Salama and northward to Esquipulas Del Norte. For more information, please see the section below on Travel Safety and Road Conditions.

Tourists and residents should avoid walking at night in most areas of Honduras, especially in the major cities. Night driving is also discouraged. Tourists, in particular, should not hike alone in backcountry areas, nor walk alone on beaches, historic ruins or trails. All bus travel should be during daylight hours and on first-class conveyances, not on economy buses. Please pick taxis carefully, and note the driver's name and license number. Instruct the driver not to pick up other passengers, agree on the fare before you depart, and have small bills available for payment, as taxi drivers often do not make change.

Please do not resist a robbery attempt. Most criminals have weapons, and most injuries and deaths have resulted when victims have resisted. Two foreign tourists were murdered in July 2002 while resisting an armed robbery on a public bus in which they were traveling. Do not hitchhike or go home with strangers, particularly from nightspots. Whenever possible, travel in groups of two or more persons. Use the same common sense while traveling in Honduras that you would in any high crime area of a major U.S. city. Do not wear excessive jewelry in downtown or rural areas. Do not carry large sums of money, display cash in general, ATM or credit cards you do not need, or other valuables.

There have been incidents of armed assaults against private sailing vessels by criminals posing as fishermen off the northeast coast of Honduras, particularly in the numerous small islands northeast of the coast of the Department of Gracias a Dios. Sailors should contact the Coast Guard and yacht facility managers in their areas of travel for current information.

The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. embassy or consulate. Groups should send passport, date of birth and emergency contact information to the American Citizens Services section of the U.S. Embassy in Tegucigalpa via fax, 011-504-238-4357, prior to travel. Individuals as well as groups should keep a copy of the passport data page and leave a copy at home with a friend or family member. U.S. citizens may refer to the Department of State's pamphlet, A Safe Trip Abroad, for ways to promote a trouble-free journey. The pamphlet is available by mail from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, via the Internet at http://www.gpoaccess.gov, or via the Bureau of Consular Affairs home page at http://travel.state.gov/.

If you are the victim of a crime while overseas, in addition to reporting to the local police, please contact the U.S. Embassy in Tegucigalpa or the Consular Agency in San Pedro Sula for assistance. The Embassy staff can, for example, assist you in finding appropriate medical care, in contacting family members or friends, and in explaining how funds can be transferred. Although the investigation and prosecution of crime (with the exception of certain terrorist acts) is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and help you to find an attorney if needed.

Medical Facilities: Medical care in Honduras varies in quality. Although doctors are generally well trained, support staff and facilities are not up to U.S. standards. Facilities for advanced surgical procedures are not available. The islands of Roatan, Utila, and Guanaja do not have a general surgery hospital. There is a decompression chamber on Roatan for divers. Travelers carrying prescription medicine should ensure that the medication is clearly labeled.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas, including emergency services such as medical evacuations.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the United States may cost well in excess of $50,000. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, please ascertain whether payment will be made to the overseas healthcare provider or if you will be reimbursed later for expenses that you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure, Medical Information for Americans Traveling Abroad, available via the Bureau of Consular Affairs home page.

Specific Health Risks: Visitors to Honduras are at risk for gastrointestinal illnesses. Pay careful attention to the choice of food and beverages. Most well known restaurants are considered safe. Tap water is not potable and should be boiled or chemically treated to help prevent cholera and gastrointestinal disorders. Safe bottled water is widely available. Mosquito-borne illnesses are a recurring problem in Honduras. All persons traveling in Honduras, even for a brief visit, are at risk of contracting malaria year-round if they travel out-side of Tegucigalpa to low-lying areas. Take a prophylactic regimen best suited to your health profile. The country regularly suffers from outbreaks of dengue fever during the rainy season. Travelers should take precautions against being bitten by mosquitoes to reduce the chance of contracting such illnesses. Because rabies is endemic in Honduras, visitors should avoid contact with animals whose immunization status is unknown.

Individuals traveling to Honduras should ensure that all their routine vaccinations are up to date, and they may also consider getting a Hepatitis A and B vaccination. Rabies is a problem in Honduras, and the post-bite prophylaxis is not available. Immediate evacuation to the United States for treatment is the rule.

Other Health Information: Information on vaccinations and other health precautions, such as safe food and water precautions and insect bit protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299) or CDC's Internet site at http://www.cdc.gov/travel.

Travel Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Honduras is provided for general reference only, and it may not be totally accurate in a particular location or circumstances.

Safety of Public Transportation: poor
Urban Road Conditions/Maintenance: Fair
Rural Road Conditions/Maintenance: Poor
Availability of Roadside Assistance: Poor

Because of crime and poor road conditions, driving can be very dangerous, and travelers may want to carry a cellular phone in case of an emergency. Travelers should exercise extreme caution while driving on isolated stretches of road and passing on mountainous curves. Rockslides are common, especially in the rainy season (June through December). Traffic signs, even on major highways, are often inadequate, and streets in the major cities are often unmarked. Travelers should drive with doors locked and windows rolled up.

Major highways have been rebuilt following the destruction caused by Hurricane Mitch in 1998, though many stretches are still under repair. Major cities are connected by an inconsistently maintained, two-lane system of paved roads, and many secondary roads in Honduras are unpaved. During the rainy season, even major highways are often closed due to rockslides and flooding. Hurricane Mitch washed out many bridges throughout the country, and temporary repairs are vulnerable to heavy rains.

Some of the most dangerous stretches for road travel include: Tegucigalpa to Choluteca, because of dangerous mountain curves; El Progreso to La Ceiba, because of animal crossings and the poor condition of bridges from flooding; and Limones to La Union, Olancho (route 41) via Salama and northward to Saba. This stretch of road is also referred to by locals as the "Corridor of Death" because of frequent incidents of highway robbery.

Route 39 through northern Olancho Department between Gualaco and San Esteban is highly dangerous and should be avoided.

Route 43 in northwest Olancho Department from Talanga to Olanchito via Yoro route 23 will become a primary route to the north coast when the remaining 60% of the highway is paved circa 1/05.

The only recommended route to the north coast from the south is CA-5 to route 21 to CA-13 via Tela to La Ceiba and Trujillo.

Honduran roads also suffer from a general lack of lighting and poorly marked highways. Vehicles are often driven at night without adequate illumination, and animals and people wander onto the roads at all hours. For these reasons, and because of the high incidence of crime, the U.S. Embassy strongly discourages car and bus travel after dark.

Hijackings of private and commercial vehicles from the United States to Honduras have occurred. Honduras and the United States have signed a stolen vehicle treaty; however, it has not yet entered into force. Moreover, since Honduran law protects good faith buyers, even of stolen vehicles, it is difficult to recover stolen vehicles. Vehicle insurance may mitigate loss; please check with the National Insurance Crime Bureau at http://www.nicb.org/, private insurance carriers, and our web site information on Commercial Vehicle Hijackings at http://www.usmission.hn/english/mission/security.htm for more information.

For additional general information about road safety, please see the Department of State, Bureau of Consular Affairs, home page at http://travel.state.gov/road_safety.html. For specific information concerning Honduran driving permits, vehicle inspection, road tax and mandatory insurance, please contact the Honduran National Tourist Organization offices in New York via the Internet at http://www.hondurastips.honduras.com.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Honduras's civil aviation authority as Category 2—not in compliance with international aviation safety standards for the oversight of Honduran air carrier operations. There is currently one Honduran airline, Sol Air, flying to the United States. However, this airline actually leases its aircraft and crews from a U.S. company. For further information, travelers may contact the Department of Transportation within the United States at tel. 1-800-322-7873, or visit the FAA's Internet web site at http://www.intl.faa.gov.

Customs Regulations: Honduran customs authorities may enforce strict regulations concerning temporary importation into or export from Honduras of items such as firearms, antiquities, medications, and business equipment. For example, Honduran law prohibits the export of antiques and artifacts from pre-colonial civilizations. To protect the country's biodiversity, it is illegal to export certain birds, feathers and other flora and fauna.

U.S. citizens, who intend to stay in Honduras for an extended period of time and who bring vehicles or household goods into the country, should consult Honduran customs officials prior to shipment. For specific information regarding customs requirements, please contact the Embassy of Honduras in Washington, D.C. or the nearest Honduran consulate.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Honduran laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Honduras are strict, and convicted offenders can expect jail sentences and heavy fines. For more information, please check the U.S. Embassy's web site at http://www.usmission.hn for the handout on If You are Arrested in Honduras. Note – Under the new U.S. "Protect Act" effective April 2003 it is a crime prosecutable in the U.S. to travel to a foreign country to sexually exploit children via pornography, the Internet and other means.

Consular Access: U.S. citizens are encouraged to carry a copy of their U.S. passports with them at all times so that if questioned by local officials, proof of identity and U.S. citizenship are readily available. In accordance with the Vienna Convention, Honduran authorities must allow U.S. citizens to contact a U.S. Consular Officer, if arrested or detained in Honduras.

Special Circumstances: Real Estate Investment: U.S. citizens should be aware of the risks inherent in purchasing real estate in Honduras and should exercise extreme caution before entering into any form of commitment to invest in property, particularly in coastal areas and the Bay Islands. Honduran laws and practices regarding real estate differ substantially from those in the United States, and there are many cases of fraudulent deeds and titles. In addition, the Honduran judicial system is weak and inefficient, often prolonging disputed cases for many years before resolution. Approximately 80% of the privately-held land in the country is untitled. Americans have spent thousands of dollars in legal fees and years of frustration in trying to resolve property disputes, even in cases in which local attorneys and Honduran and U.S. real estate agents had given assurances to the investor. There have also been incidents in which violence has been used against Americans involved in disputed property cases. American citizens should investigate purchases thoroughly and take all legal measures to prevent and, if necessary, resolve property disputes. Potential investors should engage competent local legal representation before making any commitments. Investors should thoroughly check references and bona fides of attorneys and real estate agents.

The Honduran constitution contains provisions restricting or prohibiting land ownership by foreigners in coastal and border areas, notwithstanding subsequent passage by the Honduran congress of laws authorizing such ownership in certain areas and with particular restrictions. The enforcement of laws and procedures pertaining to property titles in Honduras is inconsistent. Squatters have also claimed a number of properties owned by U.S. citizens. Investors and their attorneys should thoroughly check property titles. For further information on investing in property in Honduras, please contact the U.S. Embassy's economic section. For information on contracting Honduran legal representation, please check with other investors. You may also refer to the list of attorneys available on the Embassy's homepage at http://www.usmission.hn/. In all cases, please check references and bona fides.

Financial Market Investment: Due to poor regulation and lack of guarantees, investment in the Honduran "Bolsa de Valores," or securities market, as well as banking institution bonds, fidecomisos (trusts), and certificates of deposit from uninsured financial institutions pose high risk to investors. Extreme caution should be exercised if contemplating such activities. American citizens have lost large sums of money, which cannot be recovered, through investments in such precarious markets.

Disaster Preparedness: Honduras is prone to flooding and landslides from heavy rains, especially during the rainy season, which generally occurs from June to December. Hurricane Mitch caused extensive damage and loss of life in October 1998. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at http://www.fema.gov/.

Children's Issues: For information on international adoption of children and international parental child abduction, please refer to our Internet site at http://travel.state.gov/children's_issues.html or telephone the Overseas Citizens Services call center at 1-888-407-4747. The OCS call center can answer general inquiries regarding international adoptions and abductions and will forward calls to the appropriate country officer in the Bureau of Consular Affairs. This number is available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays). Callers who are unable to use toll-free numbers, such as those calling from overseas, may obtain information and assistance during these hours by calling 1-317-472-2328.

Registration/Embassy Location: Americans living in or visiting Honduras are encouraged to register at the Consular Section of the U.S. Embassy in Tegucigalpa and to obtain updated information on travel and security within Honduras. Travelers can register in person, or fill out the form available on the Embassy website and fax it to the Embassy. Please include a copy of the data page of your passport and emergency contact information.

The U.S. Embassy and Consulate are located at:

Avenida La Paz in Tegucigalpa, Honduras;
Fax: 011-504-238-4357
Web site: http://www.usmission.hn/
Telephone: 011-504-236-9320 or 011-504-238-5114
For information on services for U.S. citizens, please ask for ext. 4400.

The Consular Agency in San Pedro Sula is located at:

Banco Atlantida Building—8th Floor
San Pedro Sula, Honduras
Telephone: 011-504-558-1580

The Consular Agent is available during limited hours to accept U.S. passport applications for adjudication at the Embassy in Tegucigalpa, perform notarial services and assist U.S. citizens with emergencies. Please call for office hours. The Consular Agent does not provide visa information or services.

For more details about all U.S. Embassy and consular services in Honduras, please see the Embassy web site at: http://www.usmission.hn or visit the Bureau of Consular Affairs web site at: http://travel.state.gov/.

International Adoption

January 2005

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family.

Disclaimer: The information in this circular relating to the legal requirements of specific foreign countries is provided for general information only. Questions involving interpretation of specific foreign laws should be addressed to foreign legal counsel.

General: The Government of Honduras is strict in its application of adoption law. There are no private adoptions in Honduras. Adoptions in Honduras usually take from 6 months up to one year. Please be cautious in dealing with individuals who offer to facilitate or shortcut the adoption procedure; they cannot legally short-circuit the process. Adoption agencies are required to register with IHNFA. If they are not registered, IHNFA cannot assist the agencies in the adoption process.

Honduran Adoption Authority: All adoptions must go through the Instituto Hondureño del Niño y la Familia, also known as "IHNFA", which is a social welfare agency charged by the Honduran government with overseeing local and international adoptions.

Steps to Complete an Adoption In Honduras:
1) File a petition to adopt a child at the IHNFA. Once your application is reviewed and all requirements are met, your request will be placed on their list of applicants until a child is assigned to you (this may take a year). You cannot choose a particular child. You may refuse to accept the child assigned to you, provided that you have an acceptable reason for doing so. However, if you refuse a second child assigned to you, adoption proceedings will be terminated.

2) File a petition to adopt a child at the Honduran Family Court. Once the Court has reviewed your petition and determined that you meet the legal requirements to adopt, they will request IHNFA to provide them with a formal report on your social, psychological and economic suitability to adopt. You should insist that your attorney follow up with the Court to ensure that this order is sent promptly.

3) Notarize the Court's Final Adoption Decree.

Please review current reports online at www.travel.state.gov/family for more detailed information.

Age and Civil Status Requirements: The Honduran Family Code states that one member of the adoptive couple must be 25 years old, but no more than 50 years of age. Single persons who meet the age requirements may adopt. In the case of a married couple, both partners must petition for the adoption. The child to be adopted must be at least 15 years younger than the youngest member of the adopting couple. The initial adoption petition must be presented in person by the prospective adoptive parent(s). It cannot be done through an intermediary. In practical terms, this means that both members of an adoptive couple must come to Honduras. Foreigners who are not permanent legal residents of Honduras must obtain a written "follow up certification" from a US adoption agency which is licensed and duly registered with the Instituto Hondureño del Niño y la Familia (IHNFA). The certification must state that the Agency will check periodically on the wellbeing of the child until s/he reaches the age of fourteen, provide written reports to the IHNFA to ensure that the adoptive parents meet their obligations to the child. Honduran children become eligible for adoption in one of two ways:

a) Abandoned children, whose parents are unknown, cannot be found, or who have refused to care for their offspring.

b) Child relinquished for adoption occurs when a parent(s) voluntarily gives up his/her child for adoption. If both parents of the child are living, then Honduran law does not permit them to give up their child for adoption.

Adoption Agencies and Attorneys: You will need to hire a Honduran attorney since only an attorney may present the adoption petition to the Courts. Most adoption agencies in the United States that are registered with the IHNFA have contracts with designated attorneys in Honduras. However, in most cases, you can choose to work with a different attorney. The Embassy has a list of attorneys who are bilingual; however, the Embassy cannot recommend lawyers or assume responsibility for their professional performance. The Consulate maintains a notebook of letters from parents who have adopted in Honduras available for review that may be useful in selecting an attorney.

Honduran Documentary Requirements:

• BCIS approval to adopt a child (Form I-171H).
• Family photographs
• Copy of applicant(s) passport(s)
• Applicant(s) birth certificate(s)
• Applicants marriage certificate
• Applicant(s) certificate(s) of good health from licensed physician including laboratory urine and stool exams and blood tests, including for AIDS.
• Applicant(s) certificate(s) of good conduct from local police.
• Applicant(s) verification of employment specifying position, salary, length of service and benefits.
• Copy of adoption law in applicant(s) state of residence.
• Two recent, color photographs of applicant(s) home front view and neighborhood.
• Three letters of reference from recognized and respected members of applicant(s) local community (such as government, school or church officials).
• Certified bank statements giving the status of applicant(s) account.
• Certified copy of the title to any property the applicant(s) may own.
• Home study prepared by an authorized and licensed social welfare agency located near the place where applicant(s) reside.

A "follow up certification" from the adoption agency, who will oversee applicant(s) adoption until the child reaches the age of 14.

Written certification from the nearest Honduran consulate that applicant(s) have met all state adoption requirements and that the adoption agency handling your case is licensed to practice in that state.

*All documents must be translated into Spanish. They must also be authenticated by a Honduran Consulate in the U.S. and then by the Ministry of Foreign Affairs and Ministry of Government and Justice in Honduras.

U.S. Immigration Requirements: A Honduran child, even if adopted by an American citizen, must obtain an immigrant visa before he or she can enter the U.S. as a lawful permanent resident. Please see the International Adoption section of this book for more details and review current reports online at travel.state.gov/family

Honduran Embassy and Consulates in US:

Embassy of Honduras
Consular Section
Washington, DC 20008
Tel: (202) 966-7702

Honduras also has Consulates in Los Angeles, California; San Francisco, California; Jacksonville, Florida; Miami, Florida; Chicago Illinois; Baton Rouge, Louisiana; New Orleans, Louisiana; Newton, Massachusetts; New York, New York; Houston, Texas.

Honduras also has honorary consuls in Burlingame, California; San Diego, California; Denver, Colorado; Coral Gables, Florida; Gainesville, Florida; Atlanta, Georgia; Baltimore, Maryland; Minneapolis, Minnesota; St. Louis, Missouri; Rochester, New York; Cleveland, Ohio; Philadelphia, Pennsylvania; Cayey, Puerto Rico; San Juan, Puerto Rico; Providence, Rhode Island; San Antonio, Texas; and Seattle, Washington. (Honorary Consuls may perform authentication's that are required to complete adoptions in Honduras).

U.S. Consulates in Honduras:

US Consulate Honduras
Unit 2909
APO AA 34022
Phone: (504) 236-9320 X 2426; Fax: (011) (504) 237-1792
Hours: 8-5 PM

US Bureau of Citizenship and Immigration Services in the Department of Homeland Security
Unit 2901
APO AA 34022
Tel: (011) (504) 236-9320 X 2711/2716; Fax: (011) (504) 236-9107
Hours: 8 am—12 PM

Penalties for "Baby Buying": Under Honduran law, all children given up for adoption must be unconditionally abandoned to the courts. The intent of this provision is to eliminate abuses connected with the former practice of abandoning children to attorneys.

According to the new law, a parent, legal representative of a child, or any other person who sells, buys, receives, or promises payment or reward for a child to be given up for adoption will be penalized with three years and one day in prison.

Fees: Legal fees normally run from $6,000 to $8,000 but sometimes can be several thousand dollars more. For your own protection, you should negotiate all fees with your attorney before beginning the adoption process and specify all services to be included in the fee e.g., attorney's expenses, translation services, court fees, authentication's, etc. US Citizens have suggested that clients not pay fees in full in advance since the attorney would then have no incentive to finish the adoption quickly.

There is little recourse in the event of a dispute (please see the Embassy's Consular Information Sheet warnings on transactions and disputes). Children who are eligible for adoption are placed in the IHNFA's care until adoptive parents have been selected; at which time they may be transferred to a foster home.

Questions: Specific questions regarding adoption in Honduras may be addressed to the Consular Section of the U.S. Embassy or Consulate in Honduras. You may also contact the Office of Children's Issues, SA-29, 2201 C Street, NW, U.S. Department of State, Washington, DC 20520-2818, telephone (202) 736-7000 with specific questions.

Honduras

Compiled from the June 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Republic of Honduras

PROFILE

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.

Languages: 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.

Government 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.

Political 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 Garifuna (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 Honduraran 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

Last Updated: 2/1/2008

Pres.: Manuel ZELAYA Rosales

Vice Pres.: Elvin Ernesto SANTOS Ordonez

Min. of Agriculture & Livestock: Hector HERNANDEZ

Min. of Culture, Arts, & Sports: Rodolfo PASTOR

Min. of Defense: Aristides MEJIA

Min. of Education: Rafael PINEDA PONCE

Min. of Finance: Rebeca SANTOS Rivera

Min. of Foreign Relations: Milton JIMENEZ Puerto

Min. of Industry & Commerce: Elizabeth AZCONA Bobock

Min. of Govt. & Justice: Jorge Arturo REINA

Min. of Labor: Rixi MONCADA Godoy

Min. of Natural Resources & Environment: Mayra MEJIA del Cid

Min. of the Presidency: Yani ROSENTHAL

Min. of Public Employees’ Retirement & Pension (INJUPEMP): Lucio IZAGUIRRE

Min. of Public Health: Orison VELASQUEZ

Min. of Public Works, Transportation, & Housing: Jose Rosario BONANO

Min. of Public Security: Alvaro Antonio ROMERO Salgado

Min. of Science & Technology: Miriam MEJIA

Min. of Tourism: Ricardo MARTINEZ

Min. Without Portfolio (Housing Sector): Hector BRICENO

Pres., Central Bank: Gabriella NUNEZ de Reyes

Ambassador to the US: Roberto FLORES BERMUDEZ

Permanent Representative to the UN, New York: Ivan ROMERO-MARTINEZ

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 narco-terrorism 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 counter-narcotics. 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

Last Updated: 2/19/2008

TEGUCIGALPA (E) Avenida La Paz, Tegucigalpa, Honduras, APO/ FPO Unit 2900, Box 68, APO AA 34022, (504) 236-9320, Fax (504) 236-9037, Workweek: M-Th, 8-5:30; F 8-3 local time, Website: http://honduras.usembassy.gov/english/index_el.htm.

Other 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

Consular Information Sheet

October 12, 2007

Country Description: Honduras is a democracy with a developing economy. The national language is Spanish, although English is often spoken in the Bay Islands. The climate is generally pleasant and temperate, with dry and wet seasons. During the dry season from February into May, widespread forest fires and agricultural burning can lead to severely degraded air quality throughout the country leading to respiratory problems and airport closures. The terrain includes mountainous areas, coastal beaches and jungle lowlands. Facilities that would normally be used by tourists, including hotels and restaurants are generally adequate in the capital city of Tegucigalpa, San Pedro Sula, Tela, La Ceiba, the Bay Islands and near the Copan ruins. Large sections of the country, however, lack basic public services or even a governmental presence. Currency exchange is readily available at banks and hotels in the major cities.

Entry Requirements: A U.S. passport valid for at least three months from the date of entry is required to enter Honduras. Though not required by law, some travelers have reported difficulty departing Honduras using a passport with less than three months of validity beyond the date of departure. A visa is not required, but tourists must provide evidence of return or onward travel. Parents should not rely on birth certificates for their children's travel; rather, prior to travel they should obtain U.S. passports for infants and minors born in the U.S. U.S. citizens are encouraged to carry a photocopy of their U.S. passports with them at all times, so that if questioned by local officials proof of identity and U.S. citizenship are readily available.

For U.S. citizen children born in the U.S. to Honduran parents, Honduran Immigration provides an “evidence of continuance” (Constancia de Permanencia) stamp placed in the U.S. passport that allows the child to enter, depart, and remain in Honduras. Visitors are given a permit to remain in Honduras for up to 90 days. Thereafter, tourists must leave the country to qualify for a renewed visitor’ permit. Upon departure, visitors are required to pay an exit fee, either in U.S. dollars or in local currency. The current fee for international departures is USD $32.42. The fees are subject to change.

In an effort to prevent international child abduction, many governments have initiated special procedures at entry/exit points regarding the travel of minors. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian not present. Having such documentation on hand, even if not required, may facilitate entry/exit. Minors who are dual U.S.-Honduran nationals or who reside in Honduras require notarized consent from both parents if traveling alone or in someone else's custody, or from the absent parent if traveling with only one parent. In cases where one parent has sole custody, the custodial parent must submit the custody decree to Honduran immigration upon departure.

In June 2006, Honduras entered a “Central America-4 (CA-4) Border Control Agreement” with Guatemala, El Salvador, and Nicaragua. Under the terms of the agreement, citizens of the four countries may travel freely across land borders from one of the countries to any of the others without completing entry and exit formalities at Immigration checkpoints. U.S. citizens and other eligible foreign nationals, who legally enter any of the four countries, may similarly travel among the four without obtaining additional visas or tourist entry permits for the other three countries. Immigration officials at the first port of entry determine the length of stay, up to a maximum period of 90 days. Foreign tourists who wish to remain in the four country region beyond the period initially granted for their visit are required to request a one-time extension of stay from local Immigration authorities in the country where the traveler is physically present, or travel outside the CA-4 countries and reapply for admission to the region. Foreigners “expelled” from any of the four countries are excluded from the entire “CA-4” region. In isolated cases, the lack of clarity in the implementing details of the CA-4 Border Control Agreement has caused temporary inconvenience to some travelers and has resulted in others being fined more than one hundred dollars or detained in custody for 72 hours or longer.

For more information concerning entry and exit requirements, travelers may contact the Embassy of Honduras at 3007 Tilden Street N.W., Washington, D.C. 20008, telephone (202) 966-7702, or a Honduran consulate in Atlanta, Boston, Chicago, Houston, Jacksonville, Los Angeles, Miami, New Orleans, New York, Phoenix, San Francisco, San Juan or Tampa. The Honduran Embassy's email address is embhondu@aol.com. Interested individuals may visit the Honduran Embassy's web site for additional contact information through www.hondurasemb.org. For tourist information or suggestions, please contact the Honduras Institute of Tourism at 1-800-410-9608 (in the United States) or at 1-800-222-TOUR (8687) (within Honduras only) or visit their web site at http://www.hondurastips.honduras.com.

Dual Nationality: Honduran law permits dual nationality only for minors under the age of 21 and those Honduran-born citizens who have become naturalized citizens of other countries. U.S. citizens who become Honduran citizens by naturalization are not considered to have dual nationality under Honduran law. However, becoming a Honduran citizen will not cause U.S. Citizens to lose their U.S. citizenship and all the accompanying rights and privileges. Dual nationals, in addition to being subject to all Honduran laws affecting U.S. citizens, may be subject to other laws that impose special obligations on Honduran citizens. For more information, please contact Honduran Immigration in Tegucigalpa (telephone 504-238-5613), San Pedro Sula (telephone 504-550-3728), Roatan (telephone 504-445-1226), La Ceiba (telephone 504-442-0638), or Puerto Cortes (telephone 504-665-0582).

Safety and Security: Political demonstrations sometimes disrupt traffic, but they are generally announced in advance and are usually peaceful. Travelers should avoid areas where demonstrations are taking place, and they should stay informed by following the local news and consulting hotel personnel and tour guides. Demonstrators frequently block public roads to press for concessions from the Government of Honduras. These demonstrations may last several hours and the Government rarely seeks to disperse the demonstrators. U.S. citizens should never try to pass such roadblocks. While the Honduran side of the Honduras-Nicaragua border has been largely cleared of land mines, travelers should exercise caution there. For more information, we strongly encourage travelers to visit the U.S. Embassy's web site at http://honduras.usembassy.gov. For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site where the current Travel Warnings and Travel Alerts, including the Worldwide Caution Travel Alert, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444.

Crime: Crime is endemic in Honduras and requires a high degree of caution by U.S. visitors and resident alike. U.S. citizens have been the victims of a wide range of crimes, including murder, kidnapping, rape, assault, and property crimes. Fifty-seven U.S. citizens have been murdered in Honduras since 1995, with a significant recent increase. Only eighteen cases have been resolved. Kidnapping of U.S. citizens has occurred in Honduras, including two incidents in 2006. Poverty, gangs, and low apprehension and conviction rates of criminals contribute to a high crime rate, including horrific acts of mass murder.

U.S. citizens are encouraged to follow local news reports and seek additional information in the resources listed above. Criminals and pickpockets also target visitors as they enter and depart airports and hotels, so visitors should consider carrying their passports and valuables in a concealed pouch. Two-man teams on medium-sized motorcycles often target pedestrians for robbery. There have also been reports of armed robbers traveling in private cars targeting pedestrians on isolated streets. The Honduran government conducts occasional joint police /military patrols in major cities in an effort to reduce crime. Problems with the judicial process include corruption and an acute shortage of trained personnel, equipment, staff, and financial resources. The Honduran law enforcement authorities’ ability to prevent, respond to, and investigate criminal incidents and prosecute criminals remains limited. Honduran police generally do not speak English.

The government has established a special tourist police in the resort town of Tela and other popular tourist destinations, including Tegucigalpa, San Pedro Sula, La Ceiba, and Roatan, but the number deployed is small and coverage is limited. The San Pedro Sula area has seen occasional armed robberies against tourist vans, minibuses, and cars traveling from the airport to area hotels, even sometimes targeting the road to Copan. Armed men have forced vehicles transporting tourists off the road and robbed the victims, occasionally assaulting the driver or passengers. Over the past four years, several U.S. citizens have been murdered in San Pedro Sula and La Ceiba shortly after arriving in the country. Assaults in these areas may be based on tips from sources at airport arrival areas, so visitors are strongly urged to exercise caution in discussing travel plans in public.

Copan, the Bay Islands, and other tourist destinations have a lower crime rate than other parts of the country, but thefts, break-ins, assaults, and murders do occur. During a wave of home invasion robberies in Roatan in late 2005, assailants shot two foreign residents, killing one U.S. citizen. Exercise particular caution walking on isolated beaches, especially at night. Seven U.S. citizens have been murdered in Roatan since 1998, most recently in late 2005. Coxen Hole should be avoided after dark.

The Government of Honduras has a very limited presence in Northern Olancho, Colon and Gracias a Dios Departments, which are well known for lumber and narcotics smuggling and violence. Travelers in those areas should use extra caution.

Incidents of crime, including carjacking and kidnapping, along roads in Honduras are common. There have been frequent incidents of highway robbery on a number of roads including Limones to La Union, Olancho (route 41) via Salama and northward to Esquipulas Del Norte.

Travelers should always drive with their doors locked and windows rolled up to avoid potential robberies at traffic lights and other places, such as congested downtown streets. Avoid driving at night. All bus travel should be during daylight hours and on first-class conveyances, not on economy buses. Please choose taxis carefully, and note the driver's name and license number. Instruct the driver not to pick up other passengers, agree on the fare before you depart, and have small bills available for payment, as taxi drivers often do not make change.

Do not resist a robbery attempt. Most criminals have weapons, and most injuries and deaths have resulted when victims have resisted. Two foreign tourists were murdered in July 2002 while resisting an armed robbery on a public bus in which they were traveling. In 2004, an American citizen was murdered while attempting to flee an armed robbery in progress and another American was shot while resisting a carjacking. Two American citizens were murdered while resisting armed robberies in 2005.

Do not hitchhike or go home with strangers, particularly from nightspots. Whenever possible, travel in groups of two or more persons. Use the same common sense while traveling in Honduras that you would in any high crime area in the U.S.: do not wear excessive jewelry; do not carry large sums of money, or display cash, ATM/credit cards, or other valuables you do not need.

Avoid walking at night in most areas of Honduras. Do not hike alone in backcountry areas, or walk alone on beaches, historic ruins, or trails.

Individuals and groups should register their travel plans with the State Department via the Internet at the Department's secure travel registration web site. Travelers may also register by sending passport, date of birth, and emergency contact information to the American Citizens Services Unit of the U.S. Embassy in Tegucigalpa via fax at 011-504-238-4357, or e-mail at usahonduras@ state.gov prior to travel. Individuals as well as groups should always keep in their possession a photocopy of their U.S. passport data page; carry an additional copy in their suitcase; and leave a copy at home with a friend or family member.

Information for Victims of Crime: If you are the victim of a crime while in Honduras, contact local authorities immediately, either directly or through thenational police emergency number: *199. In addition to reporting to the local police, please contact the U.S. Embassy in Tegucigalpa or the Consular Agency in San Pedro Sula for assistance. The theft of a U.S. passport should be reported immediately.The Embassy and Consular Agency staff can provide you with information about medical care, contacting family members or friends and explaining how funds could be transferred. Although the investigation and prosecution of most crimes is solely the responsibility of local authorities, Consular staff can provide you with a list of attorneys if needed.

Medical Facilities and Health Information: Medical care in Honduras varies greatly in quality and availability. Outside Tegucigalpa and San Pedro Sula, medical care is inadequate to address complex situations. Support staff facilities and necessary equipment and supplies are not up to U.S. standards anywhere in Honduras. Facilities for advanced surgical procedures are not available. Wide areas of the country, including the popular tourist areas of the Bay Islands, do not have a general surgery hospital. Ambulance services are limited in major cities and almost non-existent elsewhere. Emergency services may be contacted either directly through their local numbers, or through the national medical emergency number, *112.

Scuba diving is popular in the Bay Islands, but the limited medical facilities there pose a special risk in the event of an emergency. There is a decompression chamber on Roatan and Utila for divers, but no advanced medical care on either island for diving related accidents.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the U.S. unless supplemental coverage is purchased. Furthermore, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the U.S. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including emergency services such as medical evacuations. It is important to ensure that you have adequate medical evacuation coverage prior to your trip to Honduras.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the U.S. may cost tens of thousands of dollars. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, ascertain whether payment will be made to the overseas healthcare provider or whether you will be reimbursed later for expenses you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure, Medical Information for Americans Traveling Abroad, available via the Bureau of Consular Affairs home page.

Other Health Information: Mosquito-borne illnesses are an ongoing problem in Honduras. All persons traveling in Honduras, even for a brief visit, are at risk of contracting malaria. Take a prophylactic regimen best suited to your health profile. The country regularly suffers from outbreaks of dengue fever. Unlike traditional mosquito-borne illnesses, there is no medicinal prophylactic or curative regimen for dengue fever. Travelers should take precautions against being bitten by mosquitoes to reduce the chance of contracting such illnesses, such as avoiding standing water even in the home, wearing long sleeves and pants in both day and night, and applying insect repellent regularly.

Severe air pollution, which can aggravate or lead to respiratory problems, is common throughout the country during the dry season due in large part to widespread forest fires and agricultural burning. Travelers with respiratory or cardiac conditions and those who are elderly or extremely young are at greatest risk for complications from air pollution, which may includecoughing,difficulty breathing, wheezing, or chest pain. Acute respiratory infections are also widespread; more than100,000 cases are reported annually.

Individuals traveling to Honduras should ensure that all their routine vaccinations are up to date. Vaccination against Hepatitis A, Hepatitis B, and yellow fever is strongly recommended. Travelers taking prescription medications should bring an adequate supply with them when coming to Honduras and ensure that they are properly labeled.

Honduras also has the highest adult HIV/AIDS prevalence rate in the region. Over 63,000 people in Honduras have HIV/AIDS.

Honduras lacks a substantial infrastructure for maintaining water purity. Travelers are strongly encouraged to never drink tap water in Honduras. Bottles and bags of purified water are widely available.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's Internet site at http://wwwn.cdc.gov/travel.

For information about outbreaks of infectious diseases abroad consult the World Health Organization's web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Honduras is provided for general reference only, and may not be totally accurate in a particular location or circumstance. Because of crime and poor road conditions, driving can be very dangerous, and travelers should carry a cellular phone in case of an emergency.

Travelers should exercise extreme caution while driving on isolated stretches of road and passing on mountainous curves. Rockslides are common, especially in the rainy season (May through December). Traffic signs, even on major highways, are often inadequate, and streets in the major cities are often unmarked. Travelers should always drive with their doors locked and windows rolled up to avoid potential robberies at traffic lights and other places such as congested downtown streets.

Honduran roads are poorly lit and marked. Vehicles are often driven at night without adequate illumination, and animals and people wander onto the roads at all hours. For these reasons, and because of the high incidence of crime, the U.S. Embassy strongly discourages car and bus travel after dark.

Major cities are connected by an inconsistently maintained, two-lane system of paved roads, and many secondary roads in Honduras are unpaved. During the rainy season, even major highways are often closed due to rockslides and flooding during heavy rains. In the event of an accident, contact the Honduran Transit Authority (“Transito”) immediately. They may be contacted either directly through their local numbers, or through their national emergency number, *189.Honduran law requires that none of the vehicles involved be moved until Transit Agents arrive, not even to clear a traffic obstruction, unless you are in serious physical danger.

Some of the most dangerous stretches for road travel include: Tegucigalpa to Choluteca, because of dangerous mountain curves; El Progreso to La Ceiba, because of animal crossings and the poor condition of bridges from flooding; Route 39 through northern Olancho Department between Gualaco and San Esteban; and Limones to La Union, Olancho (route 41) via Salama and northward to Saba. Locals also refer to this latter stretch of road as the “Corridor of Death” because of frequent incidents of highway robbery. The Embassy has received reports of robberies on the road from Tegucigalpa to Danlí. The only recommended route to the north coast from the south is CA-5 to route 21 to CA-13 via Tela to La Ceiba and Trujillo. Hijackings of private and commercial vehicles from the U.S. to Honduras have occurred. While Honduras and the U.S. have signed and ratified a Stolen Vehicle Treaty, existing Honduran laws protect good faith buyers (even of stolen vehicles) so the recovery and return of these vehicles to their original owners is not guaranteed. Vehicle insurance may mitigate loss; please check with the National Insurance Crime Bureau at http://www.nicb.org, private insurance carriers, and our Embassy web site information on Commercial Vehicle Hijackings at http://honduras.usembassy.gov/english/mission/sections/RSO/comveh_highsec.htm for more information. For specific information concerning Honduran driving permits, vehicle inspection, road tax, and mandatory insurance, please contact the Honduran National Tourist Organization offices in New York via the Internet at www.hondurastips.honduras.com.

Marine Safety and Oversight: The areas off both coasts of Honduras are the subject of maritime border disputes between Honduras and its neighbors. The Honduran Navy patrols these areas, and all private vessels transiting Honduran territorial waters should be prepared to be hailed and possibly boarded by Honduran military personnel to verify documentation. While the Honduran Navy previously used private vessels as patrol vessels, this is no longer the case. In the event that any vessel is hailed in Honduran waters in the Caribbean by a non-military vessel or any suspicious vessel and directed to prepare for boarding, the vessel should immediately contact the U.S. Coast Guard Operations Center by radio or INMARSAT at 305-415-6800. Anyone needing more information can also contact the U.S. Embassy during working hours and request to speak with the U.S. Military Group (USMILGP) office. There have been incidents of armed assaults against private sailing vessels by criminals posing as fishermen off the northeast coast of Honduras, particularly in the numerous small islands northeast of the Department of Gracias a Dios. Sailors should contact the Coast Guard and yacht facility managers in their areas of travel for current information.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Honduras’ Civil Aviation Authority as not being in compliance with International Civil Aviation Organization (ICAO) aviation safety standards for the oversight of Honduras’ air carrier operations. For more information, travelers may visit the FAA's Internet web site at http//:www.faa.gov.

Severe air pollution often leads to the closing of some or all of Honduras's four international airports during the dry season. Some travelers have been compelled to travel by bus to neighboring countries in order to catch onward flights.

For further information, travelers may contact the Department of Transportation within the United States at tel. 1-800-322-7873, or visit the FAA's Internet web site at: www.faa.gov/avr/iasa.

Real Estate Investment: U.S. citizens should exercise extreme caution before entering into any form of commitment to invest in real property, particularly in coastal areas and the Bay Islands. Honduran laws and practices regarding real estate differ substantially from those in the United States, and fraudulent deeds and titles are common; U.S. citizens considering investing or buying real estate in Honduras should be aware that rights to such property do not enjoy the same level of protection as in the United States. There is no title insurance in Honduras, and approximately 80 percent of privately held land is untitled. In addition, there are complaints that the Honduran judicial system often prolongs disputed cases for many years before resolution. Americans have spent thousands of dollars in legal fees and years of frustration trying to resolve property disputes, even in cases in which local attorneys and Honduran and U.S. real estate agents had given assurances to the investor. Violence has been used against Americans involved in disputed property cases. Potential investors should engage competent local legal representation before making any commitments. Investors should thoroughly check references of attorneys and real estate agents.

Honduran law places certain restrictions on land ownership by foreigners in coastal and border areas. Squatters claim a number of properties owned by U.S. citizens. U.S. Government officials may not act as agents, attorneys, or in a fiduciary capacity. U.S. citizens who own property abroad and who thereby have assumed responsibilities concurrent with ownership of property in a foreign country should take steps on their own initiative to safeguard their interests and to employ private legal counsel when the need arises. For further information on investing in property in Honduras, please review the State Department's Investment Climate Statement, part of the Country Commercial Guide at http://www.buyusa.gov/honduras/en/14.html. For information on contracting Honduran legal representation, please check with other investors. You may also refer to the list of attorneys available on the Embassy's home page at http://honduras.usembassy.gov/attorneylistjul07.pdf.

Financial Market Investment: Due to poor regulation and lack of guarantees, investment in the Honduran “Bolsa de Valores,” or securities market, as well as banking institution bonds, “fideicomisos” (trusts), and certificates of deposit from uninsured financial institutions pose high risk to investors. Extreme caution should be exercised before and while undertaking such activities, as American citizens have lost large sums of money through investments in such precarious markets. For further information on investing in Honduras, please review the State Department's Investment Climate Statement, part of the Country Commercial Guide at http://www.buyusa.gov/honduras/en/14.html.

Corruption: Many U.S. firms and citizens operating in Honduras have found corruption to be a serious problem and a constraint to successful investment. While some U.S. firms have satisfactorily resolved cases through the courts, the majority have difficulty navigating the legal system. There are complaints that the Honduran judicial system caters to favoritism, external pressure and bribes. Corruption appears to be most pervasive in government procurement, government permits, and in the buying and selling of real estate (land titling).

Customs Regulations: U.S. citizens who intend to stay in Honduras for an extended period of time and who bring vehicles or household goods into the country should consult Honduran customs officials prior to shipment. With the exception of “antique” cars, all vehicles imported into Honduras by foreigners must be less than ten (10) years old. For specific information regarding customs requirements, please contact the Embassy of Honduras in Washington, DC at: http://www.hondurasemb.org for more information.

Honduran customs authorities may enforce strict regulations concerning temporary import and export of items such as antiquities, medications, and business equipment. For example, Honduran law prohibits the export of antiques and artifacts from pre-colonial civilizations. To protect the country's biodiversity, it is illegal to export certain birds, feathers, and other flora and fauna. For specific information regarding exportation requirements, please contact the Embassy of Honduras in Washington, DC at http://www.hondurasemb.org.

The Government of Honduras is strictly enforcing the law that requires a Honduran permit for the importation of firearms into Honduras. Travelers must obtain a firearm importation permit from a Honduran Embassy, Consulate General or Consulate located in the U.S. prior to bringing firearms into the country. Please note that a U.S. government-issued or airline-issued permit is not valid for importation of firearms into Honduras. Firearms that arrive without the requisite Honduran permit will be confiscated and the bearer will be prosecuted to the full extent of Honduran law.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the U.S. and may not afford the protections available under U.S. law. Penalties for breaking the law can be more severe than in the U.S. for similar offenses. Persons violating Honduran laws, even unknowingly, may be fined, expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Honduras are severe, and convicted offenders can expect long jail sentences and heavy fines. Assisting or participating in the distribution of illegal drugs is also a crime prosecutable in the U.S., and may lead to fines, property seizure, or imprisonment. Anyone offering you illegal drugs should be considered extremely dangerous—there is no “safe” source of illegal drugs.

“Sexual tourists” travel alone or in groups to Honduras for the purpose of purchasing sexual favors from minors. This activity violates Honduran law, and American citizens are imprisoned in Honduras for sexual offenses involving minors. In addition, U.S. citizens and residents charged with these crimes are subject to prosecution upon their return to the U.S., regardless of the outcome of the judicial proceedings overseas. Moreover, the prevalence of HIV/AIDS in sex workers in Honduras is estimated to be in excess of 10%.Using or disseminating child pornography in a foreign country is also a crime prosecutable in the United States.

Children's Issues: International adoptions from Honduras are very complex. Current information on Honduran adoption procedures and the immigrant visa application process is available from the Consular Section of the U.S. Embassy. Prospective adoptive parents are urged to check with the Consular Section to ensure that all required documentation has been approved by the U.S. Bureau of Citizenship and Immigration Services of the Department of Homeland Security and to confirm that their child's adoption is complete before traveling to Honduras to apply for their child's immigrant visa. Adoptive parents are also urged to carry with them complete adoption paperwork when traveling with their adopted child to, from, and within Honduras.

Honduras is a signatory to the Hague Convention on the Civil Aspects of International Child Abduction, but the U.S. Department of State has determined that Honduras has failed to comply with its obligations under the Convention. No child has ever been returned to the United States from Honduras under the provisions of the Convention.

For information on international adoption of children and international parental child abduction, please refer to the Office of Children's Issues web pages on intercountry adoption and international parental child abduction at http://travel.state.gov/family, or telephone Overseas Citizens Services at 1-888-407-4747.

Registration and Embassy Locations: Americans living or traveling in Honduras are encouraged to register their presence through the State Department's travel registration web site, and to obtain updated information on travel and security within Honduras. Americans without Internet access may register directly with the U.S. Embassy in Tegucigalpa. By registering, whether via the Internet or in person at the Embassy, American citizens make it easier for the Embassy to contact them in case of emergency.

U.S. Embassy and Consulate location: Avenida La Paz in Tegucigalpa, Honduras
Internet site:
http://honduras.usembassy.gov
Telephone: 011-504-236-9320 or
011-504-238-5114

For information on services for U.S. citizens, please ask for ext. 4400. American Citizens Services Unit Fax: 011-504-238-4357

Consular Agency in San Pedro Sula location:
Banco Atlantida Building—11th Floor
San Pedro Sula, Honduras
Telephone: 011-504-558-1580

The Consular Agent is available during limited hours to perform notarial services, assist U.S. citizens with emergencies, and accept U.S. passport and U.S. Report of Birth applications for adjudication at the Embassy in Tegucigalpa. Please call for office hours. The Consular Agent does not provide visa information or services.

For more details about all U.S. Embassy and consular services in Honduras, please see the Embassy web site at http://hondurasusembassy.gov/ or visit the Bureau of Consular Affairs web site at http://travel.state.gov.

International Adoption

January 2007

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services.

For more information, please read the International Adoption section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Please Note: The adoption process in Honduras is currently in flux. Policies regarding eligibility requirements for adoptive parents, residency requirements, and time frame are under review by the Honduran Family Court (IHNFA).

Patterns of Immigration: Please review current reports online at http://travel.state.gov/family.

Adoption Authority: Instituto Hondureño de la Niñez y la Familia (IHNFA) for children under 14 years old. Honduran Family Court for children 14 and older.

Instituto Hondureño de la
Niñez y la Familia (IHNFA)
Honduras, Centro America
Tegucigalpa, Col. Humuya,
Calle la salud,
Apartado Postal 3234
Phone: (504) 23.57.754,
(504) 23.57.755, (504) 23.57.756
Fax: (504) 23.53.598
Website: http://www.ihnfa.hn/

Adoption Agencies and Attorneys: All adoption agencies must be accredited. IHNFA has the information about registration and accreditation to operate. The U.S. Embassy in Tegucigalpa maintains a listing of attorneys in Honduras on their website at: http://honduras.usembassy.gov/attorneyltfeb06.pdf.

Adoption Fees: Between U.S. $3,000 and U.S. $10,000 for attorney fees.

Adoption Procedures: If a child is under 14 years old, a petition (available at the IHNFA) must be submitted with the IHNFA. If a child is 14— 18 years old, a petition may be submitted to the Honduran Family Court by an attorney.

Required Documents: These are currently under review by IHNFA. Please contact IHNFA for more specific information.

Embassy of Honduras
3007 Tilden Street N.W.
Washington, D.C. 20008
Telephone: (202) 966-7702.
E-mail: embassy@hondurasemb.org
Website: http://www.hondurasemb.org

Honduran Consulates are located in Atlanta, Boston, Chicago, Houston, Jacksonville, Los Angeles, Miami, New Orleans, New York, Phoenix, San Francisco, San Juan, and Tampa.

U.S. Immigration Requirements: Prospective adoptive parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at http://travel.state.gov/family.

U.S. Embassy Avenida La Paz Tegucigalpa, Honduras.

Americans may contact the American Citizen Services Unit of the Consular Section at: Telephone: (504) 238-5114 ext. 4400; Website: http://honduras.usembassy.gov.

Additional Information: Specific questions about adoption in Honduras may be addressed to the U.S. Embassy in Tegucigalpa. General questions regarding intercountry adoption may be addressed to the Office of Children's Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-407-4747.

HONDURAS

Compiled from the May 2003 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Honduras

PROFILE
PEOPLE AND HISTORY
aGOVERNMENT
POLITICAL CONDITIONS
NATIONAL SECURITY
ECONOMY
FOREIGN RELATIONS
U.S.-HONDURAN RELATIONS
TRAVEL

PROFILE

Geography

Area: 112,100 sq. km. (43,270 sq. mi.); about the size of Louisiana.

Cities: Capital—Tegucigalpa (850,000); San Pedro Sula (500,000); metropolitan area of each city over 1 million.

Terrain: Mountainous.

Climate: Tropical to subtropical, depending on elevation.

People

Nationality: Noun and adjective—Honduran(s).

Population: (2001 est.) 6.5 million.

Growth rate: (2001 est.) 2.6%.

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: Years compulsory—6. Attendance—70% overall, but less than 16% at junior high level. Literacy—78.5%.

Health: Infant mortality rate—42/1,000. Life expectancy—68 yrs.

Work force: Services—45.7%; natural resources/agriculture—33.8%; manufacturing—15.3%; construction/housing—5.2%.

Government

Type: Democratic constitutional republic.

Independence: September 15, 1821.

Constitution: 1982.

Branches: Executive—president, directly elected to 4-year term. Legislative—unicameral National Congress, elected for 4-year term. Judicial—Supreme Court of Justice (appointed by Congress and confi rmed 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 adult.

Administrative subdivisions: 18 departments

Economy (2002)

GDP: $6.6 billion.

Growth rate: 2.0%.

Per capita GDP: $925.

Natural resources: Arable land, forests, minerals, and fisheries.

Agriculture: (12% 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.

Trade: Exports—$1.3 billion: coffee, shrimp, bananas, zinc/lead concentrates, soap/detergents, melons, lobster, pineapple, lumber, and tobacco. Major market—U.S. (49%). Imports—$3.0 billion: machinery, chemicals, petroleum, vehicles, processed foods, metals, agricultural products, plastic articles, and paper articles. Major source—U.S. (46%).

PEOPLE AND HISTORY

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. Spanish is the predominant language, although some English is spoken along the northern coast and is prevalent on the Caribbean Bay Islands. Several indigenous Indian languages and Garifuna (a black Caribe/African language) also are 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. He named the area "Honduras" (meaning "depths") for the deep water off the coast. Spaniard Hernan Cortes arrived in 1524. The Spanish founded several settlements along the coast, and Honduras formed part of the colonial era Captaincy General of Guatemala. The cities of Comayagua and Tegucigalpa developed as early mining centers.

Independence

Honduras, along with the other Central American provinces, gained independence from Spain in 1821; the country then briefly was annexed to the Mexican Empire. In 1823, Honduras joined the newly formed United Provinces of Central America. Social and economic differences between Honduras and its regional neighbors exacerbated harsh partisan strife among Central American leaders and brought on the federation's collapse in 1838. Gen. Francisco Morazan—a Honduran national hero—led unsuccessful efforts to maintain the federation, and restoring Central American unity remained the chief aim of Honduran foreign policy until after World War I.

Since independence, Honduras has been plagued with nearly 300 internal rebellions, civil wars, and changes of government—more than half occurring during the 20th century. The country traditionally lacked both an economic infrastructure and social and political integration. Its agriculturally based economy came to be 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 until the mid-20th century. During the relatively stable years of the Great Depression, authoritarian Gen. Tiburcio Carias Andino controlled Honduras. His ties to dictators in neighboring countries and to U.S. banana companies helped him maintain power until 1948. By then, provincial military leaders had begun to gain control of the two major parties, the Nationalists and the Liberals.

From Military to Civilian Rule

In October 1955—after two authoritarian administrations and a general strike by banana workers on the north coast in 1954—young military reformists staged a palace coup that installed a provisional junta and paved the way for constituent assembly elections in 1957. This assembly appointed Dr. Ramon Villeda Morales as president and transformed itself into a national legislature with a 6-year term. The Liberal Party ruled during 1957-63. At the same time, the military took its first steps to become a professional institution independent of leadership from any one political party, and the newly created military academy graduated its first class in 1960. In October 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. A civilian president—Ramon Cruz of the National Party—took power briefly in 1970 but proved unable to manage the government. In December 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.

Gen. Lopez' successors continued armed forces modernization programs, building army and security forces, and concentrating on Honduran Air Force superiority over its neighbors. The regimes of Gen. Melgar Castro (1975-78) and Gen. Paz Garcia (1978-83) 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.

Following the overthrow of Anastasio Somoza in Nicaragua in 1979 and general instability in El Salvador at the time, the Honduran military accelerated plans to return the country to civilian rule. A constituent assembly was popularly elected in April 1980, and general elections were held in November 1981. A new constitution was approved in 1982, and the Liberal Party government of President Roberto Suazo Cordoba took office following free and fair elections power.

Suazo relied on U.S. support to help with a severe economic recession and with the threat posed by the revolutionary Sandinista government in Nicaragua amid a brutal civil war in El Salvador. Close cooperation on political and military issues with the United States was complemented by 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 November 1985 election approached, the Liberal Party had difficulty settling on a candidate, and 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 January 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, Rafael Callejas won the presidential election, taking office in January 1990. Callejas concentrated on economic reform, reducing the deficit, and taking steps to deal with an overvalued exchange rate and major structural barriers to investment. He began the movement to place the military under civilian control and laid the groundwork for the creation of the public ministry (attorney general's office).

Despite his administration's economic reforms, 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 over National Party contender Oswaldo Ramos Soto, with Reina winning 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 and was successful in increasing civilian control over the armed forces and transferring the police from military to civilian authority.

Reina also restored national fiscal health by substantially increasing Central Bank net international reserves, reducing inflation, restoring economic growth, and, perhaps most importantly, holding down spending.

Carlos Roberto Flores Facusse took office on January 27, 1998, as Honduras' fifth democratically elected president since democratic institutions were restored in 1981. Like three of his four predecessors, Flores was a member of the Liberal Party. He was elected by a 10% margin over his main opponent, National Party nominee Nora de Melgar. Upon taking office on January 27, 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. The Honduran Government agreed to a new transparent process to manage relief funds, which included significant donor oversight. This open process greatly facilitated the relief and reconstruction effort. President Flores and his administration have successfully managed more than $600 million in international assistance. Civil society's role in the government-coordinated reconstruction process has been lauded internationally. President Flores also forwarded judicial and penal reforms. He established an anti corruption commission, supported passage of a new penal code based on the oral accusatorial system, and saw passage of a law that creates an independent Supreme Court. Flores cemented the transition from military to civilian rule by eliminating the commander in chief position, and by signing a law that establishes civilian control formally over the military.

Ricardo Maduro Joest of the National Party was elected to the Honduran presidency on November 25, 2001, outpolling the Liberal candidate, Rafael Pineda Ponce, by 8%. He was inaugurated on January 27, 2002. The elections, characterized by international observer teams as free, fair, and peaceful, reflected the maturing of Honduras' democratic institutions. During his campaign, President-elect Maduro promised to reduce crime, reinvigorate the economy, and fight corruption. Working to fulfill this promise, Maduro's first act as President was to deploy more than 5,000 soldiers to the streets to support the police in the ongoing fight against the country's massive crime problem. While the initial reaction to this policy was overwhelmingly positive, the soldiers' presence appears to have had only a minimally positive effect on the country's crime rate. The recent suspension of Nicaragua's 35% tariff on Honduran goods is a positive step for Central American economic integration and is seen as a victory for the Maduro administration.

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, 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, human rights and civil liberties are reasonably well protected. There are no known political prisoners in Honduras, and the privately owned media frequently exercises its right to criticize without fear of reprisals. Organized labor now represents less than 15% of the work force and its economic and political influence has declined. Honduras held its sixth consecutive democratic elections in November 2001, to elect a new president, unicameral Congress, and mayors. For only the second time, voters were able to cast separate ballots for each office, and for the first time, denied the president-elect party's absolute majority in the Congress. The incidence of cross voting between presidential and congressional candidates was marked.

Political Parties

The two major parties—the Liberal Party and the National Party—run active campaigns throughout the country. Their ideologies are mostly centrist, with diverse factions in each centered on personalities. The three smaller registered parties—the Christian Democratic Party, the Innovation and National Unity Party, and the Democratic Unification Party—have increased their political muscle in the National Congress by doubling their representation. Despite significant progress in training and installing more skillful advisers at the top of each party ladder, electoral politics in Honduras remain traditionalist and paternalistic.

Principal Government Officials
Last Updated: 1/14/04

President: Maduro, Ricardo

First Vice Pres.:Williams, Vicente

Second Vice Pres.:De Lopez, Armida

Third Vice Pres.:Diaz, Alberto

Min. of Agriculture & Livestock: Jimenez, Mariano

Min. of Culture, Arts, & Sports:

Min. of Defense: Breve, Federico

Min. of Education: Avila, Carlos

Min. of Finance: Alvarado, Arturo

Min. of Foreign Relations: Rosa Bautista, Leonidas

Min. of Industry & Commerce: Garcia, Norman

Min. of Interior & Justice: Hernandez Alcerro, Jorge Ramon

Min. of Labor: Leitzelar, German

Min. of Natural Resources & Environment: Panting, Patricia

Min. of the Presidency: Cosenza, Luis

Min. of Public Employees' Retirement & Pension (INJUPEMP): Lupiac, David Mendoza

Min. of Public Health: Lizardo, Elias

Min. of Public Works, Transportation, & Housing: Carranza, Jorge

Min. of Security: Alvarez, Oscar

Min. of Tourism: De Pierrefeu, Thiery

Min. Without Portfolio (health sector): Vargas, Carlos

Min. Without Portfolio (housing sector): Kafati, Johnny

Min. Without Portfolio (investment promotion sector): Atala, Camilo

Min. Without Portfolio (public service sector): Kafati, Eduardo

Min. Without Portfolio (strategic affairs and communication sector): Medina, Ramon

Pres., Central Bank: Mondragon de Villar, Maria Elena

Ambassador to the US: Canahuati, Mario Miguel

Permanent Representative to the UN, New York: Acosta Bonilla, Manuel

Honduras maintains an embassy in the United States at 3007 Tilden Street NW, Washington, DC 20008 (tel. 202-966-7702).

NATIONAL SECURITY

Events during the 1980s in El Salvador and Nicaragua led Honduras—with U.S. assistance—to expand its armed forces, laying particular emphasis on its airforce, which came to include a squadron of U.S.-provided F-5s. The resolution of the civil wars in El Salvador and Nicaragua and across-the-board budget cuts made in all ministries greatly reduced funding for the Honduran Armed Forces. The abolition of the draft created staffing gaps in the now all-volunteer armed forces. The military now is far below its authorized strength. In January 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.

ECONOMY

Honduras is one of the poorest and least developed countries in Latin America. The economy was traditionally based on agriculture, which accounted for 12% of GDP in 2001 and employed more than 40% of the work force. Hit by plummeting world prices, coffee accounted for only 12% of all Honduran exports in 2001, down from almost 25% in 2000. Coffee revenues in 2001 were down to $161 million from $340 million in 2000. The coffee industry was further hurt in 2002 by cold weather and torrential rains that caused the harvest to decrease to 2.1 million sacks for 2002-03. Bananas, formerly the country's second-largest export until being virtually wiped out by 1998's Hurricane Mitch, recovered in 2001 to 60% of pre-Mitch levels and generated $197 million in export revenues. Cultivated shrimp are another important export generating $125 million in 2001. Honduras has extensive forest, marine, and mineral resources, although widespread slash-and-burn agricultural methods continue to destroy Honduran forests. The gross family remittances from Hondurans living abroad (mostly in the United States) rose 27% to $700 million in 2002. The currency (lempira) in 2002 was exchanged to the U.S. dollar at 16.92, which showed a nominal depreciation of 6.3% for the year.

Unemployment is estimated at around 4.2% in 2001, though under-employment is much higher. The Honduran economy grew 2.0% in 2002, which was lower than economic growth rates of 2.7% in 2001 and 4.7% in 2000. The Honduran maquiladora (garment assembly) sector, the third-largest in the world, continued its strong performance in the first month of 2003 with the announcement of 8,000 new jobs. The industry provides employment to more than 110,000 workers and generated more than $600 million in foreign exchange for Honduras in 2001. The economic slowdown in the United States caused Honduras' maquila sector growth to stagnate in 2001 and employment in the sector to declined from 125,000 in 2000 to 110,000 in 2001.

Inflation, as measured by the consumer price index, was 8.1% in 2002, down slightly from the 8.8% recorded in 2001. The country's international reserve position continued to be strong in 2002, at slightly over $1.5 billion.

Honduras received significant debt relief in the aftermath of Hurricane Mitch in late 1998, including the suspension of bilateral debt-service payments and bilateral debt reduction by the Paris Club—including the United States—worth more than $400 million. In July 2000, Honduras reached its decision point under the Heavily Indebted Poor Countries initiative (HIPC), qualifying the country for interim multilateral debt relief. In 2001, the International Monetary Fund (IMF) and World Bank approved Honduras' Poverty Reduction Strategy Paper (PRSP), making Honduras eligible for $900 million in debt relief in present value terms, upon its completion point. Since that time, fiscal problems have derailed the government's IMF program and put the HIPC debt relief on hold. Honduras is currently negotiating with the IMF on the terms of a new 3-year Poverty Reduction and Growth Facility program.

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), and the Central American Security Commission (CASC). During 1995-96, Honduras, a founding member of the United Nations, for the first time served as a nonpermanent member of the UN Security Council.

Honduras is a strong proponent of Central American cooperation and integration, and has joined in an agreement easing border controls and tariffs among Honduras, Guatemala, Nicaragua, and El Salvador. Honduras held the 6-month SICA presidency during the second half of 2001, and worked hard to advance regional cooperation with the United States on issues related to sustainable development. President Flores also was instrumental in galvanizing regional support for counterterrorism measures following the September 11 attacks.

In 1969, El Salvador and Honduras fought the brief "Soccer War" over disputed border areas and the emigration of some 300,000 Salvadorans to Honduras in search of land and employment. The catalyst was nationalistic feelings aroused by a series of soccer matches between the two countries, but the roots of the conflict lay in local disputes over land ownership and usage. The two countries formally signed a peace treaty on October 30, 1980, which put the border dispute before the International Court of Justice (ICJ). In September 1992, the Court awarded most of the disputed territory to Honduras. 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. Honduras and El Salvador maintain normal diplomatic and trade relations, however, they continue to have strained relations over the status of their maritime borders in the Gulf of Fonseca.

Honduras and Nicaragua had tense relations throughout 2000 and early 2001 due to a maritime boundary dispute off the Atlantic Coast. Nicaragua imposed a 35% tariff against Honduras due to the dispute, and the Central American Court of Justice ruled the tariff illegal in 2001. Despite this ruling, Nicaragua continued to impose the tariff until March 2003, when it was suspended under threat of a Honduran retaliatory tariff on Nicaraguan goods.

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 a nonpermanent member of the UN Security Council, Honduras played a very helpful role in 1996, most notably in advancing the process of selecting a new UN Secretary General during its October presidency of the Council. The United States also continued to be able to count on Honduras' strong support in the war on terrorism.

The United States favors stable, peaceful relations between Honduras and its Central American neighbors. During the 1980s, Honduras supported U.S. policy in Central America 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 contributed troops for the UN peacekeeping mission in Haiti and continues to participate in the UN observer mission in the Western Sahara.

The United States is Honduras' chief trading partner, supplying 46% of its imports and purchasing 49% of its exports in 2001. 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. The United States encourages U.S. investment that contributes to Honduran development and bilateral trade.

U.S. direct investment in Honduras is an estimated $840 million, about two-thirds of the total foreign direct investment (FDI) in the country of $1.3 billion. FDI flow into Honduras in 2001 totaled $186 million with the United States leading the way with investments totaling $84 million or 45% of the total FDI. The largest U.S. investments in Honduras are in the maquila (garment assembly) sector, in which apparel and textile export revenues totaled $2.34 billion in 2001. There also are significant U.S. investments in fruit production—particularly bananas, melons, and pineapple—tourism, energy generation, shrimp culture, animal feed production, telecommunications, fuel distribution, cigar manufacturing, insurance, brewing, leasing, food processing, and furniture manufacturing. U.S. maquilas are responsible for the majority of the approximately 110,000 jobs in that sector. Many U.S. franchises, particularly in the restaurant sector, operate in Honduras.

On January 8, 2003, the United States launched negotiations for a free trade agreement with Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. The negotiations are scheduled to be completed by December 2003. The U.S.-Central America Free Trade Agreement (U.S.-CAFTA) will eliminate tariffs and other barriers to trade in goods, services, agricultural products, and investments. Additionally, U.S.-CAFTA is seen as a mechanism to solidify democracy, encourage greater regional integration, and provide safeguards for environmental protection and labor rights. The main interest for Honduras in a free trade agreement is increased access to the U.S. market for textiles and apparel goods. U.S.-CAFTA also will serve as a stepping stone to the scheduled conclusion of the Free Trade Agreement of the Americas in 2005.

The United States maintains a small presence at a Honduran military base; the two countries conduct joint counternarcotics, humanitarian, disaster relief, and civic action exercises. U.S. troops conduct and provide logistics support for a variety of 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 the training and exercises.

U.S. troops, in collaboration with counterparts from Brazil and Colombia, have since 1994 assisted Honduran soldiers in clearing land mines from the country's border with Nicaragua. As of early 2001, the U.S.-trained Honduran demining unit had cleared nine major minefields measuring about 333,000 square meters, and more than 2,200 mines had been destroyed.

U.S. Policy Toward Honduras

U.S. policy toward Honduras is aimed at consolidating stable democracy with a justice system that protects human rights and promotes 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 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. Some 400,000 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 110,000 U.S. citizens visiting Honduras annually and about 10,500 Americans residing there. More than 150 American companies operate in Honduras.

Economic and Development Assistance

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. USAID obligations to Honduras totaled $28.6 million for development assistance and $5.2 million for foodstuffs in 2002. Over the years, U.S. foreign assistance has helped advance such objectives as fostering democratic institutions, increasing private sector employment and income, helping Honduras fund its arrears with international financial institutions, providing humanitarian aid, increasing agricultural production, and providing loans to microbusinesses.

October 1998's Hurricane Mitch—the worst natural disaster ever to strike the Western Hemisphere—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. The vast majority of the U.S. reconstruction projects are scheduled to finish by December 31, 2001, with the exception of some water and sanitation and transparency projects that have been extended for another 14 months. 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.

New and existing U.S. economic programs—some with proposed enhancements that have taken on even greater importance since the hurricane—include the Caribbean Basin Economic Recovery Act, Overseas Private Investment Corporation financing for private investment and insurance against risks of war and expropriation, U.S. Trade Development Agency grant loans for prefeasibility studies of projects with U.S. product and services export potential, and U.S. Export-Import Bank short- and medium-term financing for U.S. exports to Honduran importers. All of these provide greater economic opportunity for U.S. and Honduran businessmen and women.

The Peace Corps has been active in Honduras since 1962, and, currently, the program is one of the largest in the world. In 2001, there were 200 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 through the International Criminal Training Assistance Program.

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 defense and police budgets have hovered at around $35 million during the past few years. Formal U.S. security assistance has declined from over $500 million provided between 1982 and 1993 to $500,000 annually in International Military Education and Training (IMET) courses. Some residual credits are still available from previous military aid but will be exhausted within the next few years.

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. While JTF-Bravo has been involved in several multilateral exercises and numerous smaller humanitarian deployments, it played an absolutely critical role in helping the United States to respond to Hurricanes Mitch and Keith, and the earthquakes in El Salvador by saving lives, repairing critical infrastructure, and in meeting high priority health and sanitation needs. U.S. forces also delivered millions of dollars worth of privately donated goods to those in need.

U.S. Business Opportunities

U.S. Department of Commerce trade data show that bilateral trade between the two nations reached $2.03 billion in 2001. American businesses exported $1.4 billion in goods and services to Honduras in 2001. U.S. investors account for nearly two-thirds of the estimated $1.3 billion foreign direct investment in Honduras. More than 150 American companies operate there; 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. 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

Tegucigalpa (E), Avenida La Paz, Apartado Postal No. 3453 APO AA 34022; SWB: [504] 238-5114 or 236-9320, after-hours Tel. 236-9325; Fax Number 236-9037; COM Fax 238-2888; Public Diplomacy Fax 236-9309; AID Fax 236-7776; CON Fax 237-1792. Website: www.usmission.hn

Last Modified: Monday, December 15, 2003

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) 558-0164/66
Fax: (504) 552-2401

Caribbean/Latin American Action
1818 N Street, NW
Suite 310 Washington, D.C. 20036
Tel: 202-466-7464
Fax: 202-822-0075
Internet: http://www.claa.org

U.S. Department of Commerce

International Trade Administration Office of Latin America and the Caribbean
14th and Constitution Avenue, NW
Washington, D.C. 20230
Tel: 202-482-0057
800-USA-TRADE
Fax: 202-482-0464
Internet: http://www.ita.doc.gov

U.S. Agency for International Development
1300 Pennsylvania Avenue, NW
Washington, D.C. 20523-0001
Tel: 202-712-4810
Fax: 202-216-3524
Hurricane Relief Website: http://hurricane.info.usaid.gov

TRAVEL

Consular Information Sheet
February 3, 2004

Country Description: Honduras is a democracy with a developing economy. The national language is Spanish, although English is often spoken in the Bay Islands. The climate is generally pleasant and temperate, with dry and wet seasons. The terrain ranges from mountainous to coastal beaches and jungle lowlands. Hotels and restaurants are generally adequate in the capital city of Tegucigalpa, San Pedro Sula, Tela, La Ceiba, the Bay Islands and the Copan ruins. Currency exchange is readily available at banks and hotels in the major cities.

Entry and Exit Requirements: All U.S. citizens must have a valid U.S. passport to enter and depart Honduras. A visa is not required, but tourists must provide proof of return or onward travel.

Parents should not rely on birth certificates for travel of their children; rather, they should obtain U.S. passports for infants and minors born in the U.S. prior to travel. For U.S. citizen children born in the United States to Honduran parents, Honduran Immigration provides an "evidence of continuance" (Constancia de Permanencia) stamp placed in the U.S. passport that allows the child to enter, depart, and remain in Honduras. Visitors are given a permit to remain in Honduras for 30 days. Honduran immigration may grant up to two thirty-day extensions for a total of 90 days. Thereafter, tourists must leave the country prior to reentering.

On departure, visitors are required to pay an exit fee, either in dollars or in local currency, at the airline counter. The current fee for international departures is $25 per visit, and an additional $2 agricultural inspection fee has recently been added. This fee is subject to change.

In an effort to prevent international child abduction, many governments have initiated special procedures at entry/exit points regarding the travel of minors. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian not present. Having such documentation on hand, even if not required, may facilitate entry/exit. Minors who are dual U.S.- Honduran nationals or who are resident in Honduras require notarized consent from both parents if traveling alone or in someone else's custody, or from the absent parent if traveling with only one parent. In cases where one parent has sole custody, the custodial parent must submit the custody decree to Honduran immigration upon departure.

For more information concerning entry and exit requirements, travelers may contact the Embassy of Honduras at 3007 Tilden Street N.W., Washington, D.C. 20008, telephone: (202) 966-7702; or a Honduran consulate in Atlanta, Boston, Chicago, Houston, Jacksonville, Los Angeles, Miami, New Orleans, New York, Phoenix, San Francisco, San Juan or Tampa. The Honduran Embassy's e-mail address is embhondu@aol.com, and interested individuals may visit the Embassy's website for additional contact information through http://www.embassy.org/ or http://www.state.gov/. For tourist information or suggestions, please contact the Honduras Institute of Tourism at 1-800-410-9608 (in the United States), at 1-800-222-TOUR (8687) (within Honduras only) or visit their website http://www.hondurastips.honduras.com/.

Dual Nationality: Dual nationality is only permissible for minors under the age of 21 and those Honduranborn citizens who have become naturalized citizens of other countries. U.S.- born citizens who have become Honduran citizens by naturalization are not considered by the Government of Honduras to have dual nationality, which considers them to be solely Honduran. U.S. citizens do not lose their nationality if they become residents of Honduras. Dual nationals, in addition to being subject to all Honduran laws affecting U.S. citizens, may be subject to other laws that impose special obligations on Honduran citizens. For more information, please contact Honduran Immigration in Tegucigalpa (telephone 238-5613), San Pedro Sula (telephone 550-3728), Roatan (telephone 445-1226), La Ceiba (telephone 442-0638), or Puerto Cortes (telephone 665-0582). Please see the Bureau of Consular Affairs home page on the Internet at http://travel.state.gov for our Dual Nationality flyer.

Safety and Security: Political demonstrations occur sporadically. They can disrupt traffic, but they are generally announced in advance and are usually peaceful. Travelers should avoid areas where demonstrations are taking place, and they should keep informed by following the local news and consulting hotel personnel and tour guides.

There have been kidnapping attempts and threats against a few U.S. citizens. For more information, we strongly encourage travelers to visit the U.S. Embassy's website at www.usmission.hn/english/mission/security.htm and click on Personal Security Measures–Kidnap Briefing. There have also been incidents involving roadblocks and violence connected with land disputes that can delay travel, particularly in the north coast area near Trujillo.

The areas off both coasts of Honduras have been the subject of maritime border disputes between Honduras and its neighbors. The Honduran Navy patrols these areas, and all private vessels transiting Honduran territorial waters should be prepared to be hailed and possibly boarded by Honduran military personnel to verify documentation. While the Honduran previously used private vessels as patrol vessels, this is no longer the case. In the event that any vessel is hailed in Honduran waters in the Caribbean by a non-military vessel or any suspicious vessel and directed to prepare for boarding, the vessel should immediately contact the U.S. Coast Guard Operations Center by radio or INMARSAT at 305-415-6800. Anyone needing more information can also contact the U.S Embassy and request the U.S. Military Group (USMILGP) Duty Officer.

While the Honduran side of the Honduras-Nicaragua border has been largely cleared of land mines, travelers should exercise caution in the vicinity of the border because some land mines, scattered by flooding during Hurricane Mitch in October 1998, may still exist in the area.

Crime: The security situation in Honduras requires a high degree of caution, and U.S. citizens are encouraged to follow local news reports (Please see link to sources at http://www.usmission.hn/.) and contact the Honduran Embassy in Washington, D.C. and the U.S. Embassy in Tegucigalpa for current conditions. Poverty, gangs, and low apprehension and conviction rates of criminals contribute to a high crime rate. Many men in Honduras carry firearms and machetes, and disputes are sometimes settled with violence. Both violent and petty crime is prevalent throughout the country. While crime affects everyone in Honduras, criminals have at times targeted persons, particularly those coming from airports (a cycle of armed robberies followed by brief increases in police patrols) and hotels, as well as wealthy-looking residents in San Pedro Sula, Tela, Trujillo, and Tegucigalpa. Street crime is a principal concern, with thefts, including purse snatching, pickpocketing, assaults, and armed robberies on the rise in urban areas. There has been an increase in street robberies by two-men teams on medium-sized motorcycles targeting pedestrians. There have been some incidents of sexual assault. Carjackings, kidnappings, muggings, and home invasions are not uncommon. The government has instituted a "zero tolerance" policy on crime. As part of this policy, the police patrol jointly with armed soldiers in major cities in an effort to reduce crime.

Thirty-five U.S. citizens have been murdered in Honduras since 1995, and most cases remain unresolved. There are problems with the judicial process, including an acute shortage of trained personnel, equipment, staff, financial resources, and reports of corruption. The Honduran law enforcement authorities' ability to prevent, respond, investigate, apprehend, file Interpol reports, and prosecute criminal incidents remains limited. Honduran police generally do not speak English. The government has recently established a special tourist police in the resort town of Tela and plans to expand this force to other popular tourist destinations.

The San Pedro Sula area has seen occasional armed robberies against tourist vans, minibuses and cars traveling from the airport to area hotels, infrequently targeting the road to Copan. Vehicles force the transport off the road, and then men with AK-47s rob the victims, occasionally assaulting the driver or passengers. Robberies in this area may be based on tips from sources at airport arrival areas associated with large amounts of luggage/supplies usually for groups – not average tourists; please exercise caution in discussing travel plans in public.

Copan, the Bay Islands and other tourist destinations have a lower crime rate than other parts of the country, but petty thefts and assaults do occur. Specifically, visitors to Copan and the Bay Islands have experienced some petty thefts and, on Roatan Island, robbers have targeted homes and longer-term leased residences. Hotels and pensions are considered safer. U.S. citizens visiting the islands should exercise particular caution around sparsely inhabited coastal areas and should avoid walking on isolated beaches, especially at night. While incidents of serious violent crime in these regions are infrequent, three U.S. citizens have been murdered in Roatan since 1998. However, all the victims in Roatan were either residing in Roatan and/or involved in real estate or commercial ventures. Coxen Hole should be avoided after dark.

Although not a primary tourist destination, the northern part of the Department of Olancho is known for lumber and narcotics smuggling and violence. Travelers in that area should use extra caution. See the description of highways/areas to be avoided for details.

Incidents of crime along roads in Honduras are common. There have been frequent incidents of highway robbery on a number of roads including Limones to La Union, Olancho (route 41) via Salama and northward to Esquipul as Del Norte. For more information, please see the section below on Travel Safety and Road Conditions.

Tourists and residents should avoid walking at night in most areas of Honduras, especially in the major cities. Night driving is also discouraged. Tourists, in particular, should not hike alone in backcountry areas, nor walk alone on beaches, historic ruins or trails. All bus travel should be during daylight hours and on first-class conveyances, not on economy buses. Please pick taxis carefully, and note the driver's name and license number. Instruct the driver not to pick up other passengers, agree on the fare before you depart, and have small bills available for payment, as taxi drivers often do not make change.

Please do not resist a robbery attempt. Most criminals have weapons, and most injuries and deaths have resulted when victims have resisted. Two foreign tourists were murdered in July 2002 while resisting an armed robbery on a public bus in which they were traveling. Do not hitchhike or go home with strangers, particularly from nightspots. Whenever possible, travel in groups of two or more persons. Use the same common sense while traveling in Honduras that you would in any high crime area of a major U.S. city. Do not wear excessive jewelry in downtown or rural areas. Do not carry large sums of money, display cash in general, ATM or credit cards you do not need, or other valuables.

There have been incidents of armed assaults against private sailing vessels by criminals posing as fishermen off the northeast coast of Honduras, particularly in the numerous small islands northeast of the coast of the Department of Gracias a Dios. Sailors should contact the Coast Guard and yacht facility managers in their areas of travel for current information.

The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. embassy or consulate. Groups should send passport, date of birth and emergency contact information to the American Citizens Services section of the U.S. Embassy in Tegucigalpa via fax, 011-504-238-4357, prior to travel. Individuals as well as groups should keep a copy of the passport data page and leave a copy at home with a friend or family member. U.S. citizens may refer to the Department of State's pamphlet, A Safe Trip Abroad, for ways to promote a trouble-free journey. The pamphlet is available by mail from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, via the Internet at http://www.gpoaccess.gov, or via the Bureau of Consular Affairs home page at http://travel.state.gov/.

If you are the victim of a crime while overseas, in addition to reporting to the local police, please contact the U.S. Embassy in Tegucigalpa or the Consular Agency in San Pedro Sula for assistance. The Embassy staff can, for example, assist you in finding appropriate medical care, in contacting family members or friends, and in explaining how funds can be transferred. Although the investigation and prosecution of crime (with the exception of certain terrorist acts) is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and help you to find an attorney if needed.

Medical Facilities: Medical care in Honduras varies in quality. Although doctors are generally well trained, support staff and facilities are not up to U.S. standards. Facilities for advanced surgical procedures are not available. The islands of Roatan, Utila, and Guanaja do not have a general surgery hospital. There is a decompression chamber on Roatan for divers. Travelers carrying prescription medicine should ensure that the medication is clearly labeled.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas, including emergency services such as medical evacuations.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the United States may cost well in excess of $50,000. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, please ascertain whether payment will be made to the overseas health care provider or if you will be reimbursed later for expenses that you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure, Medical Information for Americans Traveling Abroad, available via the Bureau of Consular Affairs home page.

Specific Health Risks: Visitors to Honduras are at risk for gastrointestinal illnesses. Pay careful attention to the choice of food and beverages. Most well known restaurants are considered safe. Tap water is not potable and should be boiled or chemically treated to help prevent cholera and gastrointestinal disorders. Safe bottled water is widely available. Mosquito-borne illnesses are a recurring problem in Honduras. All persons traveling in Honduras, even for a brief visit, are at risk of contracting malaria year-round if they travel outside of Tegucigalpa to low-lying areas. Take a prophylactic regimen best suited to your health profile. The country regularly suffers from outbreaks of dengue fever during the rainy season. Travelers should take precautions against being bitten by mosquitoes to reduce the chance of contracting such illnesses. Because rabies is endemic in Honduras, visitors should avoid contact with animals whose immunization status is unknown.

Individuals traveling to Honduras should ensure that all their routine vaccinations are up to date, and they may also consider getting a Hepatitis A and B vaccination. Rabies is a problem in Honduras, and the post-bite prophylaxis is not available. Immediate evacuation to the United States for treatment is the rule.

Other Health Information: Information on vaccinations and other health precautions, such as safe food and water precautions and insect bit protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299) or CDC's Internet site at http://www.cdc.gov/travel.

Travel Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Honduras is provided for general reference only, and it may not be totally accurate in a particular location or circumstances.

Safety of Public Transportation: Poor Urban Road Conditions/Maintenance: Fair

Rural Road Conditions/Maintenance: Poor

Availability of Roadside Assistance: Poor

Because of crime and poor road conditions, driving can be very dangerous, and travelers may want to carry a cellular phone in case of an emergency. Travelers should exercise extreme caution while driving on isolated stretches of road and passing on mountainous curves. Rockslides are common, especially in the rainy season (June through December). Traffic signs, even on major highways, are often inadequate, and streets in the major cities are often unmarked. Travelers should drive with doors locked and windows rolled up.

Major highways have been rebuilt following the destruction caused by Hurricane Mitch in 1998, though many stretches are still under repair. Major cities are connected by an inconsistently maintained, two-lane system of paved roads, and many secondary roads in Honduras are unpaved. During the rainy season, even major highways are often closed due to rockslides and flooding. Hurricane Mitch washed out many bridges throughout the country, and temporary repairs are vulnerable to heavy rains.

Some of the most dangerous stretches for road travel include: Tegucigalpa to Choluteca, because of dangerous mountain curves; El Progreso to La Ceiba, because of animal crossings and the poor condition of bridges from flooding; and Limones to La Union, Olancho (route 41) via Salama and northward to Saba. This stretch of road is also referred to by locals as the "Corridor of Death" because of frequent incidents of highway robbery.

Route 39 through northern Olancho Department between Gualaco and San Esteban is highly dangerous and should be avoided.

Route 43 in northwest Olancho Department from Talanga to Olanchito via Yoro route 23 will become a primary route to the north coast when the remaining 60% of the highway is paved circa 1/05.

The only recommended safe route to the north coast from the south is CA-5 to route 21 to CA-13 via Tela to La Ceiba and Trujillo.

Honduran roads also suffer from a general lack of lighting and poorly marked highways. Vehicles are often driven at night without adequate illumination, and animals and people wander onto the roads at all hours. For these reasons, and because of the high incidence of crime, the U.S. Embassy strongly discourages car and bus travel after dark.

Hijackings of private and commercial vehicles from the United States to Honduras have occurred. Honduras and the United States have signed a stolen vehicle treaty, which is pending ratification by each nation's legislature. Moreover, since Honduran law protects good faith buyers, even of stolen vehicles, it is difficult to recover stolen vehicles. Vehicle insurance may mitigate loss; please check with the National Insurance Crime Bureau at http://www.nicb.org/, private insurance carriers, and our website information on "Commercial Vehicle Hijackings" at http://www.usmission.hn/english/mission/security.htm for more information.

For additional general information about road safety, please see the Department of State, Bureau of Consular Affairs, home page at http://travel.state.gov/road_safety.html. For specific information concerning Honduran driving permits, vehicle inspection, road tax and mandatory insurance, please contact the Honduran National Tourist Organization offices in New York via the Internet at www.hondurastips.honduras.com.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Honduras's civil aviation authority as Category 2 — not in compliance with international aviation safety standards for the oversight of Honduran air carrier operations. There is currently one Honduran airline, Sol Air, flying to the United States. However, this airline actually leases its aircraft and crews from a U.S. company. For further information, travelers may contact the Department of Transportation within the United States at tel. 1-800-322-7873, or visit the FAA's Internet website at http://www.intl.faa.gov.

The U.S. Department of Defense (DOD) separately assesses some foreign carriers for suitability as official providers of air services. In addition, the DOD does not permit its personnel to use air carriers from Category 2 countries for official business except for flights originating from or terminating in the United States. Local exceptions may apply. For information regarding the DOD policy on specific carriers, travelers may contact the DOD at tel. (618) 256-4801.

Customs Regulations: Honduran customs authorities may enforce strict regulations concerning temporary importation into or export from Honduras of items such as firearms, antiquities, medications, and business equipment. For example, Honduran law prohibits the export of antiques and artifacts from pre-colonial civilizations. To protect the country's biodiversity, it is illegal to export certain birds, feathers and other flora and fauna.

U.S. citizens, who intend to stay in Honduras for an extended period of time and who bring vehicles or household goods into the country, should consult Honduran customs officials prior to shipment.

For specific information regarding customs requirements, please contact the Embassy of Honduras in Washington, D.C. or the nearest Honduran consulate.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Honduran laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Honduras are strict, and convicted offenders can expect jail sentences and heavy fines. For more information, please check the U.S. Embassy's website at http://www.usmission.hn for the handout on "If You are Arrested in Honduras." Note – Under the new U.S. "Protect Act" effective April 2003 it is a crime prosecutable in the U.S. to travel to a foreign country to sexually exploit children via pornography, the Internet and other means.

Consular Access: U.S. citizens are encouraged to carry a copy of their U.S. passports with them at all times so that if questioned by local officials, proof of identity and U.S. citizenship are readily available. In accordance with the Vienna Convention, Honduran authorities must allow U.S. citizens to contact a U.S. Consular Officer, if arrested or detained in Honduras.

Special Circumstances: Real Estate Investment : U.S. citizens should be aware of the risks inherent in purchasing real estate in Honduras and should exercise extreme caution before entering into any form of commitment to invest in property, particularly in coastal areas and the Bay Islands. Honduran laws and practices regarding real estate differ substantially from those in the United States, and there are many cases of fraudulent deeds and titles. In addition, the Honduran judicial system is weak and inefficient, often prolonging disputed cases for many years before resolution. Approximately 80% of the privately-held land in the country is untitled. Americans have spent thousands of dollars in legal fees and years of frustration in trying to resolve property disputes, even in cases in which local attorneys and Honduran and U.S. real estate agents had given assurances to the investor. There have also been incidents in which violence has been used against Americans involved in disputed property cases. American citizens should investigate purchases thoroughly and take all legal measures to prevent and, if necessary, resolve property disputes. Potential investors should engage competent local legal representation before making any commitments. Investors should thoroughly check references and bonafides of attorneys and real estate agents.

The Honduran constitution contains provisions restricting or prohibiting land ownership by foreigners in coastal and border areas, notwithstanding subsequent passage by the Honduran congress of laws authorizing such ownership in certain areas and with particular restrictions. The enforcement of laws and procedures pertaining to property titles in Honduras is inconsistent. Squatters have also claimed a number of properties owned by U.S. citizens. Investors and their attorneys should thoroughly check property titles. For further information on investing in property in Honduras, please contact the U.S. Embassy's economic section. For information on contracting Honduran legal representation, please check with other investors. You may also refer to the list of attorneys available on the Embassy's home page at http://www.usmission.hn/. In all cases, please check references and bonafides.

Financial Market Investment: Due to poor regulation and lack of guarantees, investment in the Honduran "Bolsa de Valores," or securities market, as well as banking institution bonds, fidecomisos (trusts), and certificates of deposit from uninsured financial institutions pose high risk to investors. Extreme caution should be exercised if contemplating such activities. American citizens have lost large sums of money, which cannot be recovered, through investments in such precarious markets.

Disaster Preparedness: Honduras is prone to flooding and landslides from heavy rains, especially during the rainy season, which generally occurs from June to December. Hurricane Mitch caused extensive damage and loss of life in October 1998. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at http://www.fema.gov/.

Children's Issues: For information on international adoption of children and international parental child abduction, please refer to our Internet site at http://travel.state.gov/children's_issues.html or telephone the Overseas Citizens Services call center at 1-888-407-4747. The OCS call center can answer general inquiries regarding international adoptions and abductions and will forward calls to the appropriate country officer in the Bureau of Consular Affairs. This number is available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays). Callers who are unable to use toll-free numbers, such as those calling from overseas, may obtain information and assistance during these hours by calling 1-317-472-2328.

Registration/Embassy Location: Americans living in or visiting Honduras are encouraged to register at the Consular Section of the U.S. Embassy in Tegucigalpa and to obtain updated information on travel and security within Honduras. Travelers can register in person, or fill out the form available on the Embassy website and fax it to the Embassy. Please include a copy of the data page of your passport and emergency contact information.

The U.S. Embassy and Consulate are located at:

Avenida La Paz in Tegucigalpa, Honduras
Fax: 011-504-238-4357
Website: http://www.usmission.hn/
Telephone: 011-504-236-9320 or 011-504-238-5114

For information on services for U.S. citizens, please ask for ext. 4400.

The Consular Agency in San Pedro Sula is located at:

Banco Atlantida Building - 8th Floor
San Pedro Sula, Honduras
Telephone: 011-504-558-1580

The Consular Agent is available during limited hours to accept U.S. passport applications for adjudication at the Embassy in Tegucigalpa, perform notary services and assist U.S. citizens with emergencies. Please call for office hours. The Consular Agent does not provide visa information or services.