Phase I consists of the following:

The road from Doshi to Do Shakh at the northern end of the Pass will be 10 metres wide on the flat ground and 9 metres wide on the rougher ground. According to the nature of the terrain the curves will have the following lengths: 125 metres, 60 metres and 20 metres only in very exceptional cases. The maximum gradient will be 7 per cent. and in exceptional cases 10 per cent. The asphalt cover over the sub-base will have a thickness of 6 cm. 98 drainage constructions have been planned and 28 small bridges with a 5 to 2 metre span. 15 large and medium bridges will be built with spans varying between 53 and 30 metres. Buildings and houses are to be erected for various purposes in connection with the road.

Phase II of the Salang road consists of the following:

The road from Jabalussaraj to Awlang at the Southern end of the Salang Pass will be 30 km. long and will have widths of 10 metres on the flat ground and of 9 metres on rougher ground. The curves will have lengths of 125 metres, 60 metres and in exceptional cases 20 metres. Gradients of the road will be 7 and 10 per cent. The asphalt cover over the sub-base will be 6 cm. thick. The plans include the construction of 26 drains, 11 small bridges, 12 crossings and 11 large and medium bridges with spans varying between 85 and 30 metres. The bridges will be built of iron girders and concrete slabs. Buildings and houses related to the road construction will be erected.

Phase III consists of the following:

The road from Awlang to Do Shakh, including the 2½ km. Salang tunnel will be 25 km. long. The width of the road will be 10 or 9 metres according to the terrain. The plans include the construction of 63 drains, 12 small bridges with 2 metre spans, 5 small bridges with 4 metre spans and 2 large bridges to be constructed of iron girders and concrete. Houses and buildings necessary to the road construction and maintenance will also be erected.

Work on the Salang Highway Project was started in June, 1958.

In the First Phase the following has been achieved:

A unit of the Ministry of Public Works Labour Corps during road building work at Doshi


The road from Doshi to the foot of the pass has been 45 per cent. completed.
The construction of the bridges and drains which number a total of 157 has been 72 per cent. completed. Other buildings have been completed as follows :
Housing for the engineers, 100 per cent.
The 2 storeyed hotel, 25 per cent.
The general workshop, 25 per cent.
The transport building, 25 per cent.
The ironmongers' workshop, 80 per cent.
The electricity station, 80 per cent.
The bathhouse, 95 per cent.
The explosives storage building, 100 per cent.
The general depot building, 60 per cent.
The petrol tank building, 25 per cent.
The Minister of Public Works explaining some of the construction work on the Salang Highway to His Majesty the King (left)

The laboratory building, 100 per cent.
Work on the Second and Third Phases will start as soon as the necessary equipment and materials have arrived.
Apart from the obvious economical advantages to be derived from the construction of this road, it is felt that it will also have beneficial social repercussions in that travel from the south to the north of the country will be made easier and more agreeable.
The expenditure incurred so far for the construction of the Salang Road is as follows :
19,791,406 Afghanis, which represents the total expenditure incurred by the Government of Afghanistan and 12,237,367 U.S. dollars which represents the contribution of the Government of the U.S.S.R. through a loan agreement.
Shpoonbaba Bridge
The erection of the Shpoonbaba Bridge on the Kabul River at Tang-i-Gharoo was begun in the early summer of last year and finished in the winter. 19 metres in length and 9 metres wide, it is made entirely from concrete and steel.
The Ministry's Supervisory Department has the responsibility and technical facilities for supervising the entire highway system in Afghanistan, and for undertaking the immediate repair of any damage done to bridges, drains, etc., on these roads. It is the duty of this Department moreover to supervise the asphalting work on highways included in the Plan, machine and technical projects, and transit affairs. Furthermore it has undertaken the supervision of the import of various types of machinery for road construction, surveys, laboratory equipment and spares of all kinds. The Department's function with regard to the transit project is to supervise the construction and asphalting of the Spin Boldak highway, the agreement regarding which was
68


The forests of Pactya Province on the Sulaiman ranges of mountains


70
H.M. The King riding a yak during a recent trip in the Pamir, 'The Roof of the World.'


The old caravan route over the Salang Pass which will soon be replaced by the new Salang Highway,
incorporating a tunnel 2½ kilometres long

signed with I.C.A. on June 30th, 1958.
The survey and design work on this
project was given to an American
company early in 1959, while aerial
photography of the highway was
carried out in June and finished in July.
It is estimated that constructional work on
this road will start in the autumn of this
year.

Airports

The construction of airports at Bagram
and Kabul, two of the country's most
important construction projects, has been
a further responsibility of the Ministry
of Public Works. Work on the construc
tion of the Bagram Airport began in
February, 1958, and by now 90 per cent
of the concreting work and 60 per cent
of the buildings have been finished. The
remaining work will be completed as
quickly as possible. The runways have a

length of 3,000 metres and a width of
54.4 metres, while the total area of the
airport is approximately 63,200 square
metres. Runway work finished on the
7th June, 1959, 32,000 cubic metres
having been the amount of concreting
material used. Most of the hangars will
be finished in August of this year. The
taxiways are 4.3 kilometres long, and
their date of completion was June, 1959.

A drainage system 5,520 metres in
length has been constructed to collect and
take away excess water from the airport.

Five houses have been completed for
airport officers, the transformer station is
65 per cent finished, and a road leading
to the airport is under construction, of a
total estimated length of 10 kilometres.
Furthermore there will be a hospital (20
beds), clinic (60-patient capacity), and
other structures for various purposes.

71


Kabul Airport
An agreement for the construction of the Kabul Airport was signed with the Soviet Techno-Export Agency in May of this year and work began in July. The major part of this work will lie in the construction of runways, taxiways, hangars, gas station, electrical and water power houses, canalisation, central heating unit, passenger lounge, communications unit, and roadworks along the airport. It is planned to have the work on the Kabul Airport completed in entirety within three years.

Kandahar's International Airport
ON 30th October, 1957, work was started on the construction of the International Airport of Kandahar.
Today, all the technical constructions of the airport are completed or nearing completion. This airport is destined to become the most important one in Afghanistan and one of the largest in Asia. It will be able to accommodate the latest type of modern jet aircraft and take care of the maximum amount of traffic. In addition to an efficient terminal building, a hotel will be constructed at the airport itself to provide for passengers in transit.
The construction work so far has been carried out by the Morrison Knudsen Afghanistan Company.
The total area of the airport is 3,200 hectares or 16,000 jiribs at an estimated elevation of 1,009 metres above sea level, and the construction of the following items comprise the aims of the technical part of this project:
1. An asphalt runway 3,200 metres long and 45 metres wide.
2. The latest type of runway lights.
3. Three high-speed turn-offs and connecting taxiways.

Top: The 3,200 metres long runway of the International Airport, Kandahar. 2nd: One of the hangars for future jet planes. 3rd: Customs Office and Control Tower. 4th: Terminal building of Kandahar International Airport

72


4. An apron 82 metres long and 57 metres wide.
5. A large air-conditioned hangar able to accommodate the largest types of aircrafts.
6. Several depots for the storage of goods in transit or otherwise.
7. A hydrant fuelling system for the rapid refuelling of aircraft, specially jet-propelled airliners.
Architectural and engineering services for the non-technical parts of the airport construction will be provided by the "Pacific Architects and Engineers" firm of Tokyo.
Their services are for the following:
1. Transmitter building.
2. Communications Centre Building. This will include an air traffic control centre for the whole of Afghanistan.
3. Building and facilities for stand-by generators.
4. Freight building.
5. Terminal building. This will be a two-storey building able to accommodate 100 passengers at one time. Built over the two-storey passenger section will be an air-conditioned control tower. The terminal building will include the following:
(a) A ticket lobby with booths for 10 airlines (with possibility of expansion to 200 booths).
(b) A waiting room for local passengers with a snack bar.
(c) A waiting room for passengers in transit.
(d) A waiting room for distinguished travellers.
(e) A restaurant available to local and intransit passengers.

During the last stages of the construction of Bagram Airport, Government officials were invited to inspect it

(f) A kitchen to serve the restaurant and meals on aircraft.
(g) Baggage and customs facilities.
(h) Passport and health control offices.
(i) Bonded lockers.
(j) Rest rooms and for the public.
(k) Offices for airlines.
(l) Airline operations apron service.
(m) Airport administrative offices for manager and staff.
(n) A control tower and equipment room.
(o) Premises for the meteorological group.
(p) A message centre and briefing room.
(q) A transformer vault.

78


[BLANK PAGE]


The Students of the Aviation Course at Kandahar

Airport Projects
After agreements with the International Co-operation Administration of America it was arranged that a number of airstrips would be built in some Afghan cities, for the benefit of air traffic between the capital and these cities. Five such airstrips, at Herat, Baghlan, Kandahar, Jalalabad and Kunduz, are included in the present plan. The site for the airstrip in Badakhshan has already been chosen, survey work is being carried out, and on the completion of the initial stages construction work will begin.

As the runway of the Herat airstrip was found to be unsuitable for use during the winter months, arrangements were made to prepare another runway. At the present time a 2,200 metres long and 200 metres wide runway is in the process of construction.

The Baghlan airstrip has already been surveyed and the site of the Hassan Tal airstrip chosen. When the latter is ready the transport of merchandise from Kataghan to Kabul and the outside world will be much easier. Similarly, survey work on the Farah and Kunduz strips are being conducted.

Towards the end of 1333 (early 1955) definite steps were taken in the field of meteorology. Assistance received from the World Meteorological Organisation included the sending of specialists and technical equipment, while arrangements were made to establish meteorological stations in Kabul and the provinces, in addition to 25 observatories in Kabul and various parts of the country. It was planned furthermore to build five pilot balloon stations in Kabul, Kandahar, Mazar-i-Sharif and Jalalabad, two radio sound stations in Kabul and Kandahar, and several laboratories and workshops; and also to purchase the necessary equipment and vehicles.

Training in meteorology is divided into four courses:

(i) Weather Forecast. The need for this did not become apparent until the Afghan Airlines began their regular services. A course was begun at Kabul into which graduates in science of the University of Kabul were accepted. The course is one year long, and some of its graduates are sent abroad for higher and more specialised training. At the present time the work of the graduates of this depart-

76


ment is handicapped by lack of the necessary equipment, so the Afghan Air Authority is arranging the purchase, importation and installation of such equipment in the near future.
(ii) Radio Sound. The use of pilot balloons for collecting information about weather conditions is also new in Afghanistan. A course has been established in this subject as well and it is hoped that its graduates will help to spread meteorological knowledge throughout the country.
(iii) Technicians' Course. The purpose of this course is instruction in the use and repair of meteorological equipment. Graduates of the High School level are
accepted into it and receive training from Afghan and foreign teachers. Some graduates of this course too are sent abroad for higher training and a few who have completed their training are now working in Afghanistan. There are four meteorological workshops in the country—for radio sound equipment, comparison, the repair of self-recording equipment, and general repair.
(iv) Observers' Course. The training given here is in the use of meteorological equipment in observing weather conditions. A good number of students have already graduated from this course and are at work in meteorological stations throughout the country.

Students at a Meteorology Course at the Training Centre

77


The Kabul-Jalala-
bad highway at
Tangi-Gharoo

The new Dilaram
Bridge, Kandahar

Part of the completed cotton
storage accommodation at the
Kunduz Cotton Union Com-
pany

78


MINISTRY OF COMMUNICATIONS

AN important measure taken in the field of communications during the third year of the Plan was the agreement for the installation of a 1,500 line telephone service for the city of Kandahar. According to the Agreement, signed with a Czechoslovakian company, the equipment necessary for this service will arrive in Afghanistan within fifteen months. Another important step was the installation of exchanges and new lines throughout the country. In this connection, eleven new exchanges have been installed in the capital and the provinces—such as in Lashkargah, Kandahar; Sher Shah Maina, Kabul; Herat and Parwan. Among the switchboards set up elsewhere in the country can be mentioned those at Badakhshan, Shibirghan, Chahar Burjak, Farah, Chakhansaur, Nangarhar, Pul-i-charkhi, Kabul and the Pactya Province. Lines amounting to about 200 kilometres in all have been extended during the year in Akcha, Guldar, Saighan, Moosa Khel and Shokhi; while the telephone service between Mazar-i-Sharif and Maimana has been doubled.

The new channel system units purchased for telephone and telegraphic purposes between Kabul and Mazar-i-Sharif, and between Kabul and Spin Boldak, from the Siemens Company have arrived in Kabul. When these are installed it will be possible to carry four telephonic and six telegraphic communications on each pair of wires. As this new service cannot for technical reasons be operated on the present steel wires the Ministry has had to obtain new equipment, including copper wires, for use in the new channel system. 5,000 metal poles with all accessories such as brackets and insulators and 270 tons of copper wire have been purchased and imported from the Soviet Union, and improvement work began on the Kabul—Kandahar line in September, 1958. The work completed on the Kabul—Spin Boldak line through Kandahar is as follows:

i. The channel system line between Kabul and Ghazni has been renewed to a total length of 80 kilometres.
ii. The Ghazni—Gardez—Mukur line has been renewed to a length of 30 kilometres.
iii. The Mukur—Kalat line has been renewed to a length of 40 kilometres.
iv. The line between Kalat and Kandahar has been renewed to a length of 40 kilometres.
v. The Kandahar—Spin Boldak line has been renewed to a length of 55 kilometres.

It is hoped that the work on the whole project will be finished by March, 1960, when the channel system will officially come into operation.

A new agreement has been signed with the Soviet Union for the purchase of 5,500 poles (with accessories) to be used in the renewal and improvement of the channel system line between Kandahar and Herat. The price of these is estimated at 300,000 dollars. A specialist from the International Telecommunications Organisation has been invited by the Ministry to give advice on the improvement of channel system services in Afghanistan; and on the basis of the report he presented to the Ministry, arrangements are now under way for the purchase of necessary equipment for the extension of the channel system between Kandahar and Islam Kala through Herat. This project will require approximately 60 tons

79


America through the Exchange Office in
Amsterdam, arrangements were made
with the Ariana Airlines, and mail for
Europe and the U.S.A. continued to be
despatched three times a week. There are
now twice weekly deliveries of air mail
between Kabul and Karachi.
Arrangements were made with the
Viennese 101 Office for the despatch of
air mail to Kabul in special envelopes in
accordance with the decisions of the
Ottowa Postal Congress.
A 12 per cent. increase has taken place
in postal revenues. On important national
and international occasions new stamps
have been issued, including the 40th
anniversary of Independence Day,
Children's Aid, the anniversary of the
United Nations, the Red Crescent,
Pakhtunistan Day, Atoms for Peace,
Human Rights, the International Exhibi-
tion in Kabul, and the visit to

Afghanistan of the President of Turkey.
Afghanistan's representative joined in the
annual communications conference of
E.C.A.F.E. and the International Tele-
communications Union's meeting in
Tokyo. As a result of talks held between
the Afghan representative and the
organisation's authorities, the Inter-
national Telecommunications Union
promised to give a further assistance of
175,000 dollars within the next three years
to the Ministry of Communications. This
sum will be used in the survey of com-
munications plans and for the School of
Communications in Kabul. The Union
moreover promised the services of a
specialist in the channel system, and also
gave 6,000 dollars worth of equipment to
the Ministry during the year. The French
S.F.R. Company too has presented the
Ministry with some equipment for the
wireless telegraphic system.

Back view of the new 50 kW. broadcasting transmitter at Kabul

81


Afghanistan's representative also participated in the International Postal Conference in Ottowa. The Ministry sent four of its officials to Germany and Belgium for specialised training in the telephone and channel system. The graduates of the School of Communications last year were 35 in number, and they have started work in the telegraphic comunications systems of the Ministry.

Twenty line inspectors also finished their practical training courses and joined the working staff of the Ministry. Three Specialists from Germany have been employed, under whose supervision work on the channel system and other line extensions has continued during the year. A French specialist has been employed as well for work with the wireless telegraphic section of the Ministry.

Afghan technicians now man all branches of the Ministry of Communications, including this department of Wireless Telegraphy at Yakatoot, Kabul

82


An orange grove in Jalalabad, capital of Nangarhar Province


A view of the Greater Pamir with a few yaks grazing in the foreground.


MINISTRY OF PUBLIC HEALTH

One of the main activities of the Ministry of Public Health has been to increase its contacts with the outside world.

Various delegations and individuals have been sent abroad, either to participate in health conferences and seminars or to further their own knowledge in particular fields with the object of giving better service to the Afghan nation on the conclusion of their foreign studies.

In the same way many experts, undertaken, such as malaria control, typhoid control, the campaigns against T.B. and smallpox, and training courses for nurses and medical students.

A writ has been issued for conducting compulsory vaccinations against smallpox throughout Afghanistan.

The construction of a health centre was begun at Kurlanger, Logar, during the year. A hospital was opened at Shibirghan and medical personnel were sent to the Mobile Hospital Unit of Kandahar and

The 1338 graduates of the Midwifery Course at Kabul's Maternity Hospital

specialists and health advisers have been received at the Ministry from such outside sources as W.H.O. and U.N.I.C.E.F. These personalities in turn have helped the Ministry in promulgating new health measures or in continuing those already the X-Ray Unit of Nangarhar. The graduates of the Nursing, Midwifery, Dispensers' and Sanitarian Courses, as well as those of the School of Assistant Physicians and Assistant Dentists were sent to various provinces to begin active

85


work in hospitals all over the country.
A new Radiography and Radioscopy Unit has been installed in Kabul and has begun to operate, 12,739 people having been X-rayed during the year. Also a new course called the Physicians' High Course has been inaugurated, in which X-ray specialists are given the most recent information in the field. Thirty-eight students have been given specialised education in the campaign against malaria and have been sent to various campaign areas. Four qualified doctors have been sent abroad for further training in the struggle against this disease.

One of the new midwives receiving her certificate of graduation, complete wtih her photo, from the Deputy Minister of Public Health

An assistant dentist from the Central Institute of Dentistry at Kabul

HEALTH STATISTICS
A. CURATIVE INSTITUTIONS
Hospitals and Poli-clinics 52
Mobile Units 6
Technical personnel 773

B. PREVENTIVE INSTITUTIONS
Malarial campaign centres 11
Anti-V.D. centres 5
Maternity centres 17
Tuberculosis campaign centre 1

(a) Anti-Malaria campaign
Area of Activity
Kabul, Kandahar, Farah, Girishk, Herat, Pactya, Mazar-i-Sharif, Kataghan, Nangarhar, Badakhshan
Population covered
2,234,510
DDT used (lbs.)
534,000

86


(b) Anti-Typhoid campaign
Area of Activity Population covered DDT used (lbs.)
Provincial centres, districts, and villages 2,277,000 307,800

(c) Anti-Tuberculosis campaign
Radiographed and tuberculin tested ... 16,996
B.C.G. vaccinated ... 2,123
Treated in hospitals, etc. ... 1,498

Treated in their homes ... 190
(d) Smallpox vaccinations ... 849,000
(e) Number of out-patients at hospitals and poli-clinics 860,216
Patients admitted to hospitals and treated ... 9,792

C. NEW MEDICAL EQUIPMENT INSTALLED
Laboratories ... 12
X-ray equipment ... 9
Dental surgeries ... 9

THE MATERNITY HOSPITAL IN KABUL

THE Maternity Hospital was established in 1951. At first it had only six beds, but within the year this number was increased to 35. By 1955 it had risen to 65, and continues as such to date.

The hospital is divided into two sections, internal and outpatients. The internal section is further divided into Maternity and Gynæcology. There are five outpatient sections, known as Policlinics, in Kabul where pregnant women are examined every fifteen days until the time of birth; for which event the patient is either admitted into hospital or remains at home under the supervision of hospital personnel.

The hospital authority also supervises a Midwifery Course, founded on the 15th December, 1951, from which there have been 62 graduates so far.

The average yearly number of patients admitted into the Maternity Hospital is 1,600. There have been 1,500 natural births and 125 Caesarian operations last year. Around 310 patients have given birth to their children at home, under the supervision of hospital midwives. The number of patients treated in the Policlinics during the year is as follows :

(i) Shahrara Policlinic: new patients, 1,596; former patients, 5,378; new gynæcological cases, 775; former gynæcological cases, 480.

(ii) Central Policlinic: new patients, 774; former patients, 2,232.

(iii) Maiwand Wat Policlinic: new patients, 1,193; former patients, 2,783.

(iv) Chaman Policlinic: new patients, 967; former patients, 2,859.

(v) Shershahmaina Policlinic: new patients, 784; former patients, 2,329.

The number of people using the facilities of the Maternity Hospital is increasing constantly. Gone are the days when they preferred unqualified midwives and had their children delivered at home in conditions far from hygienic.

87


MINISTRY OF TRADE

DURING the third year of the plan the Ministry of Trade dealt with a number of activities pertain-
ing to an increase in trade relations with
other countries, and national and inter-
national exhibitions were held for the
further publicising of Afghan commodi-
ties to consumers at home and abroad.
Here we present details of some of the
year's activities.

FOREIGN TRADE

A. Agreements.

During the year several trade agree-
ments have been signed or extended and
various delegations have gone to foreign
countries or been received from foreign
countries for the furtherance of commer-
cial and trade relations.

(i) A delegation from the Czechoslovak
Government arrived in Kabul to sign an
agreement and protocol for the exchange
of goods and prices between the govern-
ments of Afghanistan and Czechoslovakia.
After due discussion and talks between
the parties, a barter agreement and
protocol for prices was signed on October
12th, 1958.

(ii) A protocol for the exchange of
goods and prices between Afghanistan
and Poland, which is signed alternately in
Kabul and Warsaw, was extended on
October 21st, 1958, in Kabul when a
Polish delegation arrived for talks in
Afghanistan.

(iii) On the invitation of the United
Arab Republic Chamber of Commerce, a
delegation headed by the Deputy Minister
of Planning left for Cairo on December
8th, 1958, to participate in an economic
conference held there.

(iv) As a result of an agreement
between Afghanistan and France and with

a view to expanding economic relations
between the two countries, an Economic
and Technical Co-operation Agreement
was signed by representatives of both
sides in Kabul on January 6th, 1959.

(v) An Afghan economic delegation
participated in the annual E.C.A.F.E.
Conference from January 9th to 19th and
from January 21st to February 21st in
Bangkok. An exchange of views took
place on the expansion of trade relations
between Asian countries and the possi-
bilities of exporting and importing goods
between the countries concerned were
established. Direct talks and communi-
cations took place later between Afghani-
stan and other participants in the
Conference.

(vi) An Afghan delegation participated
in the 15th session of the E.C.A.F.E.
Committee Meeting held in Australia in
March, 1959.

(vii) A commercial delegation was sent
to Yugoslavia upon the invitation of the
Yugoslav Government in March, 1959, to
inspect commercial and industrial
organisations in that country.

(viii) The Protocol for the Exchange of
Goods and Prices between Afghanistan
and the U.S.S.R. was renewed for the
year 1959 when a delegation under the
Minister of Trade visited the U.S.S.R. in
April.

(ix) Upon the unofficial invitation of
the Italian Government a delegation
consisting of representatives of the
Ministries of Mines and Industries.
Public Works and Trade, Da Afghanistan
Bank, Commercial Bank, and the Gulba-
har Textile Company went to inspect the
various industries and commercial
organisations of Italy in June, 1959.

(x) A Japanese technical, co-opera-
tive and economic delegation came to

88


The Afghan Minister of Trade (right) calling
on his Indian counterpart on a recent visit to
New Delhi

Kabul during the year 1337 and
exchanged views with organisations
concerned on the strengthening and
further development of trade relations
between Japan and Afghanistan.

(xi) As trade between Afghanistan and
India did not flow in accordance with
expectation—and indeed there were cer-
tain difficulties in its way—the Ministry of
Trade, through the Ministry of Foreign
Affairs, contacted the Indian Government
with regard to the renewal of trade
agreements between the two countries. As
a result a delegation left for India in July
to discuss possibilities of removing the
difficulties present and signed a new
agreement.

(xii) Upon the proposal from the Polish
Embassy in Kabul for the renewal of the
existing Agreement and Protocol for the
Exchange of Goods and Prices for 1959
and 1960, the Ministry has agreed to
receive a Polish delegation in Kabul and
it is expected that when a new agreement
has been reached a protocol between the
two governments will be signed in War-
saw.

(xiii) The protocol for the Exchange of
Goods and Prices for 1959-60 will shortly
be signed between Afghanistan and
Czechoslovakia in Prague.

B. Foreign Investment.
During the year four requests were

received for investment in Afghanistan :
(i) A request for the establishment of
a casings industry by a Japanese merchant
with a capital of one million Afghanis.

(ii) A request for the establishment of
an organisation which would furnish
machinery for sorting fruits. The proposer
is a German subject and the proposed
capital is 7,500 dollars.

(iii) A request for the establishment of
an electrical workshop by the Siemens
Company with a capital of 100,000 D.M.

(iv) A proposal by the Franklin
Development Institution of New York for
participating in the Ministry of Education
Press with a capital of 300,000 dollars.

These proposals are receiving attention
at the Ministry of Trade.

C. Transit and Transport Difficulties.
As Afghanistan is a land-locked
country, the consequent effect on the
country's economic development has not
been very favourable. The Ministry of
Trade, with a view to preparing transit
and transport routes for the flow of goods
to and from Afghanistan, has contacted
the governments of Pakistan and the
U.S.S.R. with regard to the signing of
transit treaties with the said governments.
As a result some facilities have been
introduced in this respect. During last
year a Pakistani delegation, headed by
the Pakistani Minister of Finance, arrived
in Kabul and held talks on transit prob-
lems. An agreement was signed after
these talks. This delegation was followed
by another Pakistani delegation under the
Minister of Trade which sought ways of
implementing the aforementioned agree-
ment. A further delegation, this time
from Afghanistan, left for Pakistan to
discuss the difficulties created in imple-
menting the transit agreement between
Pakistan and Afghanistan.

The Afghan-Soviet Transit Agreement
of 1954 was extended when a delegation

89


His Majesty The King opening the Second International Exhibition in Kabul

from the Soviet Union's Sofracht came to Kabul and held talks with the authorities of the Department of General Transport.
To ease the transport of goods over the Oxus (Amu) River to Kabul and other areas the Ministry of Trade has established an office entitled Bandar-Wali (Port Authority) at Kizil Kala. This office will be responsible for all works and activities in the northern ports such as Kizil Kala, Tashguzar and Kilift.
D. International Exhibition at Kabul.
The establishment of international exhibitions throughout the world has been considered very favourable for the development and expansion of trade relations and the sale of goods.
In 1337 an international exhibition was held in Kabul to introduce Afghanistan's traditional industries and goods. Invitations were sent to friendly countries for their participation in the exhibition, and as a result several nations did participate. The 1337 exhibition in Kabul was more attractive and covered greater territory than the one which was held two years before. In all some forty Afghan institutions and fourteen foreign governments, as well as several foreign private organisations (which have agencies in

Afghanistan) participated in the international exhibition. The occasion was held to be both successful and effective.
During 1337 Afghan representatives participated in an international exhibition held in Italy between December 6th and 21st, 1958. Afghanistan also took part in India's Industrial Exhibition, when a delegation headed by the Afghan Minister of Trade was invited to India. Another Afghan delegation also joined in the Cairo Industrial Exhibition.
INTERNAL TRADE
The Ministry of Trade has taken considerable interest in the development of internal commerce and in furnishing ways and means for the purchase of goods and their export, as well as such other items as sorting and packing, and the transport of goods for trade throughout the country. There follows a list of the Ministry's activities in these respects.
A. Credits Furnished.
(i) Cotton: in order to encourage the cultivation of cotton, one of the country's most important industrial products, the Ministry has in the past few years furnished the following credits to various organisations:
Organisation Credit
Kunduz Cotton Company 86 million Afghanis
Amin Co. Ltd. 40 million Afghanis
(ii) Karakul:—
Organisation Credit
Karakul Company—through Da Afghanistan Bank 34 million Afghanis
(iii) Wool:—
Organisation Credit
Wool Company—through Da Afghanistan Bank 61 million Afghanis
B. Sorting and Standardising.
(i) Cotton: the Ministry has assisted by

90


supplying specialists for the better sorting of cotton for export and for other markets. As a result of this considerable satisfaction has been achieved from the Afghan Barter Agreements with several countries.
(ii) Fruit: fresh and dry fruits are among the important produce and export items of Afghanistan. In order to increase the export of this item to foreign countries a new company was established at Kandahar with a capital of 500,000 Afghanis. A Ministry of Trade representative is assisting this company for the sorting and standardising of fruits. Another company has been established in Kabul with a capital of 7,500,000 Afghanis and aims to do the following:
a. export fresh and dry fruits and seeds,
b. regulate the market from the view-point of export and the requirements of foreign trade markets,
c. seek foreign markets for fruit from Afghanistan.
d. import machinery for the cleaning, purifying, packing and conserving of fruits.
Until recently the market for the export of Afghan fruit was India and Pakistan. The Ministry has made efforts to expand this market, and with this end in view has despatched samples of Afghan products to various eastern, European, African and American states. Orders have been received from a number of these for such fruits as raisins, pistachio, almond, walnut, dried apricot, etc.
Several machines for cleaning raisins were imported during 1337 and distributed to various raisin-producing localities in Kandahar and Kabul.

INSURANCE
The Afghan export and import items are being insured by foreign companies such as Sterling and Union. A U.S.S.R.

A karakul ram and his shepherd. Thousands of flocks of karakul sheep are raised in the Northern Provinces

Insurance Company has also agreed to insure Afghan commodities. A proposal of a French insurance company with respect to Afghan goods is now under study. Arrangements have been made for the despatch of a representative of the Ministry to Germany for higher and more specialised training in the field of insurance. The Ministry is also studying the possibility of establishing several Afghan insurance companies and has taken steps in employing an insurance specialist from Germany for the time being.

NEW COMPANIES AND TRANSPORT ORGANISATIONS
During 1337 and with the active encouragement of the Ministry, several companies and transport organisations came into being. Following are details of a few of them:-

Company
Capital Afghanis
Machine workers Ltd. 5,000,000
Mohabbat Co. 2,400,000
Siddiki Transport Co. 1,780,000
Pashtani Co. 1,400,000
Bakhtawar Co. 2,400,000
Wadani Co. 2,500,000

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Kataghan Seeds & Transport Co. 3,500,000
Kadiri Co. 3,500,000
Hakim & Omar Co. Ltd. 2,000,000
Kataghan Joint Stock Co. 1,700,000
Balkh Joint Stock Transport Co. 5,000,000
Shakir China Works 7,700,000
Further increase in D.M.
Siemens Co. 200,000
Further increase in Afghanis
Bus Service Co. 4,423,000

RESEARCH STATISTICS
A. Regulations.
During 1337 the Ministry has prepared and presented for the inspection and study of expert organisations the following

A young girl of the Shakh Valley, Maimana, in native costume, deftly weaving one of the carpets for which Afghanistan is famous

regulations:
i The Law of Foreign Investment (this has now passed all its legal procedures and become a national statute).
ii The Law of Trade Brokerage.
iii The Law of Registering Trade Marks.
iv The Law of Motor Vehicle Brokerage.
A special department of the Ministry has been continuously active in preparing trade statistics in Kabul and in all the customs houses throughout the country as well as at the borders. The monthly reports filed at all these customs houses are forwarded to the Ministry where they are systematically arranged. The annual trade volume statistics are derived from them.
The 1337 Export Statistics were arranged on the basis of the International Code System and published in Persian and in English in one volume early in 1338.
The import statistics for 1336 are in the process of being printed. Arrange-ments have been made to purchase all the necessary machinery for the future publishing of general statistics in Afghan-istan within the country.
During the year a course in statistics was instituted in which a number of officials from the Ministry as well as representatives from the statistical depart-ments of other ministries and organisa-tions took part. The course gave general information on statistics during the three months of its duration.

PRICE CONTROL
The Ministry has established an Office of Price Control with a view to removing the possibility of profiteering and of creating balanced rates for goods, especially pertaining to those goods which
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A wild ram of the Chinari Mountains, near Kabul.


[BLANK PAGE]


are in the daily consumption list. The
success achieved by this office has been
very encouraging.

TRADE TRIBUNALS

The Ministry has further been respon-
sible for the establishment of trade

tribunals in Kabul and the provinces for
the solution of various problems, should
they arise. The three tribunals in each
province have been active throughout the
year and have solved a number of prob-
lems brought before them. The primary
courts have solved twenty cases, the
appeals courts sixteen cases.

EXPORT STATISTICS FOR 1336
(22nd March, 1957 – 21st March, 1958)

THE total figure for exports from
Afghanistan during the year was
1,984 million Afghanis. This was
360 million Afghanis over the figure for
1335. Exports in 1335 amounted to 1,624
million Afghanis and in 1334 to 1,527
million Afghanis.

Based on an international classification
of commodities, Afghan export goods are
divided into 16 major categories. Each
of the major divisions is subdivided,
bringing the total number of exported
goods to 119 items. Major categories of
export goods are :

Fresh fruits—twelve kinds.
Dried fruits—thirty kinds.
Fresh vegetables—sixteen kinds.
Seeds and spices—nine kinds.
Hides and skins—six kinds.
Furs—five kinds.
Wool—four kinds.
Planting seeds—five kinds.
Medicinal herbs—fifteen kinds.
Fabrics—four kinds.
Carpets and rugs—seven kinds.
Semi-precious stones—three kinds.
Cotton, casings and live animals.

The countries to which Afghan com-
modities have been sent are : India, the
Soviet Union, the U.S.A., Great Britain,
the West German Federal Republic,
Czechoslovakia, Pakistan, Holland, Leba-
non, Poland, Singapore, Austria, Japan,
Kenya, Saudi Arabia, Italy, Iran, Egypt,

Sweden, Switzerland, Syria, Bahrein,
China, Iraq, and France.

During the year the major receiving
countries were :
million
Afghanis
India .......................................... 580
U.S.S.R. ..................................... 455
U.S.A. ........................................ 336
Great Britain .............................. 255
Germany ................................... 118
Czechoslovakia .......................... 112
Pakistan ..................................... 97

Afghanistan's leading customers were
therefore India, receiving 29 per cent. of
the export commodities during the year,
Russia receiving 23 per cent., U.S.A. 17
per cent., Great Britain 12 per cent.,
Germany 6 per cent., Czechoslovakia 6
per cent, and Pakistan 5 per cent.

There follows a list of the country's
major export commodities during 1336
with their export values and the amounts
which were sold :

Com- Export
modity Value Amount
million
Afghanis
Dried fruits 530 27,400 metric tons
Karakul 446 2,900,000 pelts
Raw cotton 320 17,706 metric tons
Wool 215 6,972 .. ..
Fresh fruits 144 31,497 .. ..

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Carpets and
Kelims 96 239,050 sq. metres
Casings 60 2,000,000 coils
Seeds and
Spices 70
Hides and
skins 55 1,400,000 pieces

Afghan export commodities have brought in from major receiving countries during the year the following amounts :
India ... ... 564 million rupees
Pakistan ... 129 .. ..
U.S.S.R. ... 76 .. dollars
Great Britain ... 16 .. pounds sterling
Germany ... 35 .. marks
Czechoslovakia 14 .. dollars
U.S.A. ... ... 17 .. ..

From the above statistics it can be seen that more than fifty per cent. of Afghani-stan's trade income in 1336 was derived from dried fruits, karakul, cotton, wool and fresh fruits. Dried fruit, which was the leading export commodity, earned 26 per cent. of the total trade income, while karakul brought in 22 per cent., cotton 16 per cent., wool 10 per cent., and fresh fruits 7 per cent.

This order of importance of commodities was not the same in 1335. Comparing trade figures of 1336 to those of 1335 it can be seen that during the latter year karakul was the leading export commodity, forming 25 per cent. of the country's trade earnings, while dried fruits earnings were 22 per cent. of the total. Similarly, cotton brought in 12 per cent., wool 10 per cent. and fresh fruits 11 per cent. A study of the export trade also indicates that the export of some commodities has been steadily rising—such as karakul which shows a steady rise

One of the numerous designs of Afghan carpets is the Feel Pye (Elephant Pad) one shown above

96

A mountain torrent in the Greater Pamir


from the year 1331 up to 1336, from 158 to 446 million Afghanis. However, during the year 1336 as compared to 1335 Karakul exports declined from 25 per cent. to 23 per cent. of the country's

total trade. On the other hand export of other commodities, such as cotton, is following a fluctuating pattern from a maximum of 320 million Afghanis to a minimum of 140 million.

IMPORT TRADE OF AFGHANISTAN

DURING the year 1336 the total imports of Afghanistan were 1,966 million Afghanis, while the country's exports during the same year were 18 million Afghanis more than the imports. The export trade consists of raw material, while the import products are mainly consumer goods and an increasing amount of capital goods. The variety of goods imported amounts to 306 commodities, ranging from nails and needles to trucks, turbines and tractors. Commodities using a substantial part of the foreign exchange earnings of the country are natural and artificial silk, amounting to almost 500 million Afghanis, cotton piece goods amounting to over 300 million Afghanis, sugar over 150 million Afghanis, vehicles over 150 million Afghanis, petrol almost 150 million Afghanis, tea over 100 million Afghanis and paraffin 25 million Afghanis. Between the years 1330 and 1336 the country's import trade has undergone a change, not only in volume, which has almost trebled, but also from the viewpoint of consumers. Cotton piece goods which formed 40 per cent. of Afghanistan's foreign trade in 1330 declined to 16 per cent. in 1336 and were replaced to a large extent by natural and artificial silk which rose from 5 per cent. to 25 per cent.

The change in demand from cotton piece goods to artificial silk indicates the rise in income of the lower income groups. Import of vehicles during the same period went up to six times its former amount

and gasoline to five times, this being an indication of increased economic activity.

Import Statistics
Commodity Groups	Millions of Afghanis
Food ... ... ... 295.14
Beverages and Tobacco ... 7.48
Inedible raw materials, except fuels ... 2.93
Mineral fuels, lubricants and related materials ... ... ... 139.50
Animal and vegetable oils and fats ... .35
Chemicals ... ... ... 49.09
Manufactured goods classified chiefly by material ... ... ... 1,068.55
Machinery and transport equipment ... 220.15
Miscellaneous manufactured articles ... 177.09
Miscellaneous transactions and commodities, not elsewhere specified	5.97
Grand total ... ... 1,966.25

During 1336, 30 per cent. of the import trade of Afghanistan came from the U.S.S.R., 20.6 per cent. from Pakistan, 18 per cent. from Japan, 11 per cent. from India, 8 per cent. from the U.S.A., 4 per cent. from Germany and 3 per cent. from England. The leading trade partners from whom the country received its supplies during 1336 were the U.S.S.R., Pakistan, Japan, India, the U.S.A., and Great Britain. Since 1330, imports from the U.S.S.R. into Afghanistan have increased by six times, from Pakistan by four times, from Japan by seven times, from the

97


U.S.A. by three times, and from Germany by seven times. Other countries such as Italy and Czechoslovakia which prior to 1335 had little or no trade with Afghanistan have become new trade partners. On the other hand, due to the adoption of new trade policies by some countries their volume of trade with Afghanistan has declined. India, which used to be Afghanistan's leading partner, now ranks fourth in the latter's suppliers' list.

The above analysis shows that the import trade of Afghanistan has followed a steady pattern with moderate changes during the year. Based on statistics provided by the Customs Houses, both export and import figures have increased, but the excess in exports has been much larger than the increase in imports. This has resulted in a surplus of 18 million in 1336, in contrast to the deficit of 124 million Afghanis in 1335.

DA AFGHANISTAN BANK

DA Afghanistan Bank was established in the year 1929 with an initial capital of 120 million Afghanis. As the country's central bank it issued paper money for the first time in 1930, and began a foreign exchange service. In 1943 it undertook the control of foreign exchange throughout the country.

Da Afghanistan Bank was established on the basis of a Joint Stock Company, of which 93.33 per cent. of the capital belongs to the Government and the remaining 6.77 per cent. is privately owned. In accordance with its constitution, Da Afghanistan Bank has the monopoly of issuing bank notes in the country. Among its other duties are :
(a) fixing the exchange rate,
(b) regulating the rate and circulation of money,
(c) regulating the exchange and market value of money,
(d) conducting the Government's Treasury affairs,
(e) taking the necessary measures for fixing Afghan currency with the concurrence of the Government.

Da Afghanistan Bank issues and regulates paper money, supervises the affairs of the Treasury and those of the Govern-ment, municipalities and other Afghan offices inside and outside Afghanistan insofar as they are concerned with banking; participates in the issuing of legal documents pertaining to the Government and municipalities; purchases and sells gold and silver, foreign currencies, shares and loan documents; conducts safe deposit affairs and accepts savings accounts; gives loans to municipalities and, on conditions of public interest, to other banks, industrial and trade organisations, besides functioning in usual ways. The affairs of the Bank are conducted by a body 762 in strength. It has taken the initiative in establishing the country's other main banks: the Mortgage and Construction Bank; the Agricultural and Cottage Industries Bank; the Commercial Bank; and the Industrial Cassette. It has also established agencies in the provinces and outside Afghanistan.

In the Autumn of 1954 the capital of the Bank was increased to 400 million Afghanis. A quarterly magazine entitled "Da Afghanistan Bank Magazine" was published for the first time in the autumn of 1956. This is issued free to people and organisations interested in economic affairs.

The amount of paper money in circulation at the end of 1337 (early 1959) was 1,870 million Afghanis. A proportionate

98


A view of the beautiful valley of Paghman, near Kabul


100

Water released through the Kajaki Dam gushing out from the site of the future hydro-electric power station, back into the
Helmand River. This will be the largest power station in Afghanistan, with a capacity of 120,000 kWh.


increase was also made in the gold and silver backing for the paper money in that year, and this amounted to 60.2 per cent.

Interest
There are two forms of interest rate in Da Afghanistan Bank, the Commercial Interest rate and the Government Interest rate.

(i) Commercial Interest rate:
(a) Commercial loan 8 per cent.
(b) Joint Stock loan 8 per cent.

(ii) Government rate:
(a) Government Loans 4 per cent.
(b) Municipalities 4 per cent.
(c) Government undertakings 4 per cent.

Discounts
(i) Discounts on the documents of industrial organisations 7½ per cent.
(ii) Repeated discount 7 per cent.
(iii) Cultural discount 5 per cent.

Foreign Exchange
The Foreign Exchange rate is divided into two sections, namely, the differing rates for the Government's ordinary and developmental budgets on the one hand and for industrial undertakings on the other.

(i) Ordinary and developmental Budget rate:
Currency Purchase Sale Afghanis
(a) 1 U.S. dollar 20 20.25
(b) 1 Swiss franc 4.662 4.720
(c) 1 French .. .048 .0413
(d) 1 German mark 4.7618 4.8214
(e) 1 Indian and Pakistani rupee 4.2 4.2525
(f) 1 English £ 56 56.7

(ii) Industrial and Governmental Undertakings rate:
Currency Purchase Sale Afghanis
(a) 1 U.S. dollar 28 28.35
(b) 1 Swiss franc 6.52 6.6084
(c) 1 French .. .0517 .0578
(d) 1 German mark 6.6667 6.75
(e) 1 Indian and Pakistani rupee 5.88 5.9535
(f) 1 English £ 78.4 79.38

OUTSIDE ASSISTANCE FOR AFGHANISTAN
Received in the Year 1337

A. U.N.O.
The United Nations and its specialised agencies placed the sum of $700,603 at the disposal of the various government departments. Of this, $57,470 were spent in the purchase of equipment and the rest was used for the employment of 74 specialists and the school fees of 11 students.

The breakdown of the specialists' subjects was as follows:—
9 specialists connected with U.N.T.A.B.
1 specialist connected with International Communications Union.
2 specialists connected with World Meteorological Organisation.
4 specialists connected with I.L.O.
21 specialists connected with F.A.O.
8 specialists connected with U.N.E.S.C.O.
11 specialists connected with I.C.A.O.
18 specialists connected with W.H.O.

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Aid from U.N.I.C.E.F. has been entirely used for the purchase of D.D.T., powdered milk, soap, medicines, etc.
The Government paid their share for membership in the various specialised agencies, as well as a sum of 2,561,763 Afghanis, $4,400, £1,500, and 5,000 Pakistani Rupees for the administrative expenses of U.N.T.A.B. Another sum of 3,456,000 Afghanis was also paid by the Government for the local expenses of the United Nations specialists.
In 1958 the United Nations Organisation arranged the establishment of a special fund to give assistance in the developmental projects of the underdeveloped countries. Afghanistan accepted membership of the Fund and undertook to pay the $6,000 annual fees. Two requests have been made to the Fund for their assistance—
(a) in the preparation of population and agricultural statistics in 1960, and
(b) in the survey of water resources and agricultural land.
The United Nations Organisation also set up an organisation for international administrative services (O.P.E.X.). This new organisation places its specialists at the disposal of governments as executive officials and not as advisers. Afghanistan requested eleven such officials for the departments of population, statistics, agriculture, planning, communications and mines and industries. But as the organisation is new the responsibilities of these executive officials have not yet been clearly defined, and they enjoy diplomatic immunity, in spite of having complete executive authority in Government departments. It seems to be wrong from the viewpoint of public administration principles to hold an office and exercise complete authority, and yet not be responsible. Afghanistan has therefore made her request for help from this organisation conditional on the responsi-

bility of its administrators to the Afghan Government.

B. I.C.A.

The technical assistance rendered to Afghanistan by the International Co-operation Administration of America in the year 1958 amounted to $2,850,000, which was made up as follows :—
$
1. For agricultural projects ... 279,000
2. For mineral and industrial projects ... 190,000
3. For communication projects :
Road improvements $32,000
Transportation ... 307,000
Transit project ... 22,000
361,000
4. Public Health ... 5,000
5. H.V.A. ... 76,000
6. For Educational projects:
Institute of Technology $127,000
School of Agriculture 96,000
Institute of Education 462,000
Faculty of Agriculture & Engineering 335,000
Kabul University... 55,000
1,075,000
7. For Public Administration... 79,000
8. For other projects ... 785,000

Grand Total $2,850,000

Assistance from an I.C.A. Special Fund to Afghanistan amounted to $23,743,000, for the following projects :—
$
Agricultural projects ... 50,000
Road improvement ... 175,000
Civil aviation ... 175,000
Transit ... 18,993,000
Public health (H.V.A.) ... 100,000
Aerial photography ... 1,150,000

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103
A mountain torrent in the Greater Pamir


Technical sports ... 100,000
Development of H.V.A. resources ... 3,000,000
$23,743,000

The Ministry of Planning has obtained official permission to secure a loan of 25,000,000 dollars from the U.S. Development Loans Fund. This Fund has been recently established to help in the economic development of under-developed countries by providing loans to individuals and organisations without government backing. The money lent is repaid in the borrowing country's currency.

C. WEST GERMAN FEDERAL REPUBLIC
As a result of a Technical Assistance Agreement concluded with the Government of the West German Federal Republic on January 30th, 1958, the said Government is helping Afghanistan in technical schools, in providing fellowships, in geological survey, in the establishment of an office for the economic use of water resources and experimental workshops. The amount of money involved is around four million German marks.
On the basis of this agreement, so far the following specialists are busy at work in Afghanistan:—
2 teachers at Kabul School of Mechanics.
2 teachers at Kabul Handicrafts School.
2 teachers at Kandahar School of Mechanics.
1 plant-specialist for the Booto Co. (Medical Herbs Co.).
1 specialist for sorting of cotton.
Two delegations are at present working with the Ministry of Mines and Industries in geological and hydrological research. Some scholarships have been awarded to Afghan students for higher education in Germany. The survey of the Kokcha River, to cost approximately $160,000, has also been promised. A few economic advisers will also shortly be placed at the disposal of the Ministry of Planning.

D. FRENCH AID
On the basis of the 1958 Economic and Technical Co-operation Agreement signed with the French Government, that Government has undertaken to send the following specialists to Afghanistan:—
1 chief engineer for the Ministry of Public Works.
4 specialists for the Ministry of Mines and Industries.
2 specialists for agriculture.
1 chemist for the Ministry of Public Health.
A six-man group is already conducting radio-activity research in Afghanistan in conjunction with the Ministry of Mines and Industries.

E. JAPANESE TECHNICAL ASSISTANCE
There is a strong possibility that a technical assistance agreement may be signed with Japan. At the moment, the Japanese Government has expressed its willingness to offer a few scholarships to Afghan students and to place some specialists at the disposal of Afghanistan under Japan's Technical Assistance Programme to Middle and Near Eastern Countries. Two Japanese experts have been requested for the Kargha dam and canal work near Kabul.

F. CZECHOSLOVAK TECHNICAL ASSISTANCE
The loans given to Afghanistan by the Government of Czechoslovakia for the Afghan economic ventures have been helpful. As a result talks are going on between the two Governments for the signing of a Technical Assistance Agreement, the conclusion of which is expected shortly.

FROWDE & CO. (PRINTERS) LTD., LONDON, S.E.1