Appendix B:

DATA ON BEST PROSPECTS FOR AGRICULTURE AND INDUSTRY SECTOR EXPORTS

Aircraft and Parts:  As the headquarters for Gulf Air, which is owned in equal
shares by the governments of Bahrain, Abu Dhabi, Oman, and Qatar, Bahrain
provides a major market for sales of aircraft and parts, and this category is
both the largest and fastest-growing component of U.S. exports to Bahrain.
Total aircraft purchases by Gulf Air for 1993-95 are expected to total 1.7
billion U.S. dollars.  In November, 1993, Gulf Air signed an agreement with
Boeing to purchase six Boeing 777 widebodied aircraft for delivery 1998-2000,
with an option for the subsequent purchase of six more, the total sale, if all
12 aircraft are ultimately purchased, will exceed two billion dollars.
Although once almost a U.S. monopoly, this sector has become a hot battlefield
between U.S. companies and the European Airbus.  Gulf Air's fleet, as of June,
1994, consisted of 18 Boeing 767's, eight Boeing 737's, eight Airbus A-320's,
one Airbus A-340, and eight Lockheed Tristars, with five Airbus A-340's and 10
A-320's on order.  Until three years ago, Gulf Air's Fleet consisted entirely
of U.S. aircraft.

Motor Vehicles and Parts:  This sector provided the second-largest source of
orders for U.S.-manufactured goods in 1993.  While Japan has long dominated
this sector, estimated to exceed USD 200 million in 1994, greatly improved
quality strength of the yen, gives U.S. companies good prospects for
increasing their share, which amounted to USD 31.5 million (23.5 percent) in
1992, and, by U.S. figures, an additional USD 26.8 million in 1993, not
counting reexports to Bahrain from other countries.  More aggressive
salesmanship by a General Motors agent greatly boosted orders for trucks and
other large vehicles in 1993.  Temporary difficulties under Bahrain's 1992
Commercial Agents Law slowed this growth somewhat in 1993.

Furniture and Floor Covering:  U.S.-made furniture and carpets have an
excellent reputation for design and quality in the Bahrain market, especially
among the Western-educated middle and upper income groups.  A growing number
of large showrooms feature U.S. furniture and carpets.  Total Bahraini imports
of furniture and furniture parts (excluding electrical and plumbing fixtures
and parts) exceeded USD 42 million in 1993, according to Bahraini import
statistics.  U.S. exports to Bahrain of furnishings, according to U.S.
Department of Commerce statistics, reached USD  11.5 million in 1993, divided
almost equally between furniture (USD 5.8 million) and carpeting (USD 5.7
million).

Corn Oil:  The largest-selling U.S. export to Bahrain in 1993, corn oil sales
amounted to USD 11,833,000, roughly ten times actual Bahraini consumption.
Most U.S. corn oil exported to Bahrain is reexported to other countries in the
region.

Sporting Goods & Recreational Equipment:  U.S. exports of sporting goods to
Bahrain totaled $1.2 million in 1993 increasing at a compound annual rate of
47 percent from 1989-1993.  Bahrain was the 55th largest market for U.S.
exports of sporting goods and the third largest in the Middle East.