Background: Founded in 963 Luxembourg became a grand duchy in 1815 and an independent state under the Netherlands. It lost more than half of its territory to Belgium in 1839 but gained a larger measure of autonomy. Full independence was attained in 1867. Overrun by Germany in both World Wars it ended its neutrality in 1948 when it entered into the Benelux Customs Union and when it joined NATO the following year. In 1957 Luxembourg became one of the six founding countries of the European Economic Community.

Land boundaries: 359 km total; Belgium 148 km, France 73 km, FRG 138 km

Coastline: none--landlocked

Maritime claims: none--landlocked

Climate: modified continental with mild winters, cool summers

Terrain: mostly gently rolling uplands with broad, shallow valleys; uplands to slightly mountainous in the north; steep slope down to Moselle floodplain in the southeast

Natural resources: iron ore (no longer exploited)

Land use: 24% arable land; 1% permanent crops; 20% meadows and pastures; 21% forest and woodland; 34% other

Geography
Note: landlocked

Population: 383,813 (July 1990), growth rate 1.1% (1989)

Nationality: noun--Luxembourger(s; adjective--Luxembourg

Ethnic groups: Celtic base, with French and German blend; also guest and worker residents from Portugal, Italy, and European countries

Languages: Luxembourgish, German, French; many also speak English

Religions: 97% Roman Catholic, 3% Protestant and Jewish

Birth rate: 12 births/1000 population (1990)

Death rate: 10 deaths/1000 population (1990)

Net migration rate: 9 migrants/1000 population (1990)

Environment
Current issues: deforestation

Infant mortality rate: 7 deaths/1000 live births (1990)

Life expectancy at birth: 72 years male, 80 years female (1990)

Total fertility rate: 1.5 children born/woman (1990)

Literacy: 100%

Country name: conventional long form: Grand Duchy of Luxembourg

Government type: constitutional monarchy

Capital: Luxembourg

Administrative divisions: 3 districts; Diekirch, Grevenmacher, Luxembourg

Independence: 1839

National holiday: National Day (public celebration of the Grand Duke's birthday), 23 June (1921)

Constitution: 17 October 1868, occasional revisions

Legal system: based on civil law system; accepts compulsory ICJ jurisdiction

Suffrage: universal and compulsory at age 18

Executive branch: Chief of State--Grand Duke JEAN (since 12 November 1964; Heir Apparent Prince HENRI (son of Grand Duke Jean, born 16 April 1955; Head of Government--Prime Minister Jacques SANTER (since 21 July 1984; Deputy Prime Minister Jacques F. POOS (since 21 July 1984)

Legislative branch: Army

Judicial branch: Superior Court of Justice (Cour Superieure de de Justice)

International organization participation: Benelux, BLEU, CCC, Council of Europe, EC, EIB, EMS, FAO, GATT, IAEA, IBRD, ICAO, IDA, IEA, IFAD, IFC, ILO, IMF, INTELSAT, INTERPOL, IOOC, IPU, ITU, NATO, OECD, UN, UNESCO, UPU, WEU, WHO, WIPO, WMO

Diplomatic representation
In the us: Ambassador Andre PHILIPPE; Chancery at 2,200 Massachusetts Avenue NW, Washington DC 20,008; telephone (202) 265-4,171; there are Luxembourg Consulates General in New York and San Francisco; US--Ambassador Jean B. S. GERARD; Embassy at 22 Boulevard Emmanuel-Servais, 2,535 Luxembourg City (mailing address is APO New York 9,132; telephone p352o 460,123

Flag description: three equal horizontal bands of red (top), white, and light blue; similar to the flag of the Netherlands which uses a darker blue and is shorter; design was based on the flag of France

Economy overview: The stable economy features moderate growth, low inflation, and negligible unemployment. Agriculture is based on small but highly productive family-owned farms. The industrial sector, until recently dominated by steel, has become increasingly more diversified, particularly toward high-technology firms. During the past decade growth in the financial sector has more than compensated for the decline in steel. Services, especially banking, account for a growing proportion of the economy. Luxembourg participates in an economic union with Belgium on trade and most financial matters and is also closely connected economically with the Netherlands.

Agriculture products: accounts for less than 3% of GDP (including forestry; principal products--barley, oats, potatoes, wheat, fruits, wine grapes; cattle raising widespread

Industries: banking, iron and steel, food processing, chemicals, metal products, engineering, tires, glass, aluminum

Industrial production growth rate: 5% (1989 est.)

Labor force:

Unemployment rate: 1.6% (1989 est.)

Budget: revenues $2.5 billion; expenditures $2.3 billion, including capital expenditures of NA (1988)

Fiscal year: calendar year

Exports: $4.7 billion (f.o.b., 1988)
Commodities: finished steel products, chemicals, rubber products, glass, aluminum, other industrial products
Partners: EC 75%, US 6%

Imports: $5.9 billion (c.i.f., 1988 est.)
Commodities: minerals, metals, foodstuffs, quality consumer goods
Partners: FRG 40%, Belgium 35%, France 15%, US 3%

Debt external: $131.6 million (1989 est.)

Exchange rates: Luxembourg francs (LuxF) per US$1--35.468 (January 1990), 39.404 (1989), 36.768 (1988), 37.334 (1987), 44.672 (1986), 59.378 (1985; note--the Luxembourg franc is at par with the Belgian franc, which circulates freely in Luxembourg

Electricity
Capacity: 1,500,000 kW capacity; 1,163 million kWh produced, 3,170 kWh per capita (1989)

Military expenditures
Percent of gdp: 1.2% of GDP, or $76 million (1989 est.)

Airports: 2 total, 2 usable; 1 with permanent-surface runways; 1 with runways less than 1,220 m; 1 with runways over 3,659 m

Pipelines: refined products, 48 km

Waterways: 37 km; Moselle River

Merchant marine: 4 ships (1,000 GRT or over) totaling 6,138 GRT/9,373 DWT; includes 2 petroleum, oils, and lubricants (POL) tanker, 2 chemical tanker