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were largely brought about on an independent economy basis; however, as in most fields a balance was not kept, and as the Government wanted to regulate the use of its resources, it was decided to adopt a policy of guided economy. As a result successful economic co-ordination can be seen at work in the fields of agriculture, industry, construction, communications and transport, as well as in cultural and social affairs. This in turn has led to the Government's first Five Year Development Plan, which when completed will further strengthen the nation's economy. The total cost of the Plan amounts to 5,708,612,000 Afghanis. The average annual capital investment thus amounts to 1,141,722,400 Afghanis, which is eight per cent of the national income of 12½ billion Afghanis. Seventy-five per cent of the Development Plan's expenses are to be paid from the nation's own resources and the remaining 25 per cent will come from loans. The total amount of foreign currency needed for the Plan is 196 million dollars. The importance and preference of the various sections of the national economy can be seen from the following presentation of expenditure accounts: i. Agriculture and Irrigation: 2,294.3 million Afghanis. ii. Transport and Communications: 1,625.1 million Afghanis. iii. Industry: 727 million Afghanis. iv. Public Services: 652.7 million Afghanis. v. Mines: 242.7 million Afghanis. vi. Miscellaneous: 165.3 million Afghanis. The Government's total administrative and ordinary expenditure during the Five Year Plan will amount to 5,081.3 million Afghanis, which will bring the total figure for the nation's ordinary and developmental expenditure to 10,789.4 million Afghanis. The Plan, which is now entering its fourth year has undergone minor changes resulting from the country's needs and practical conclusions drawn during the first and second years. The overall effect, however, has been the growth of a new outlook towards the future. There is an altogether new and unprecedented desire throughout the nation for a change for the better. There are already concrete examples of this change, and the nation is working hard to see that there shall be more. Now that they know it is possible to rebuild their country, the Afghans are anxious to do so. The measures undertaken by their Government have their wholehearted support, while the material advantages resulting from these measures further increase their morale and their zeal for hard work. In the following pages we are presenting progress reports of activities in the various fields for the fiscal year which has just passed (1337-1338). This year coincides with the Third Year of the Afghan Five Year Plan (September, 1958-September, 1959). In a few cases the report only covers the first half of the Third Year of the Plan. It is hoped that by glancing through the following pages the reader may gain an impression of Afghanistan's development in various fields over the last fiscal year. Further enquiries on any of the subjects discussed here may be addressed to: The Information Bureau, Royal Afghan Embassy, 1, Kensington Church Court, London, W.8. Tel. : WES 6185. 7