II.  LEADING TRADE PROSPECTS FOR U.S. BUSINESS

Oil and Gas Infrastructure

U.S. products in this area remain the most competitive in Syria, on the basis
of quality and reputation, if not price.  Within the last year, third-country
competitors, especially an Egyptian supply and service company, have become
prominent and have priced U.S. competitors out of the market for
less-sophisticated services and products.  Development of Syrian gas
infrastructure will be highly lucrative over the next several years.
Exploration prospects are reasonable, but, in the absence of much higher oil
prices, the Syrian government will have to provide better concession terms to
attract U.S. companies.


Electrical Power Generation and Distribution

As Syria's economy and population continue to expand, this field will remain a
very high priority.  To fund necessary work, the government will have to
re-program funds from elsewhere, rely on foreign aid, or open the field more
extensively to the private sector.  Italian companies have been especially
successful in this area and the Japanese, backed by tied foreign aid, are also
present.  U.S. technology is highly regarded, however, and is likely to be
preferred if price competitive and in a more favorable political environment.

Computerization

U.S. technology is highly preferred in Syria, which needs ground up
computerization of its major government and private institutions.  East Asian
knockoffs are price competitive, but the biggest problem for U.S. exports is
Syria's continuing presence on the terrorism list which imposes time consuming
or commercially impossible licensing requirements on U.S exporters.

Telecommunications

Same comments as above apply.  Competition also comes from European suppliers.
In the post-peace process environment, telecommunications is likely to be a
prime target of foreign   assistance.

Food Processing

Syria's good agricultural base, growing population, and export orientation
will make its demand for food processing equipment grow substantially over the
next several years.  The private sector is increasingly moving into this
sector, forcing the larger public sector companies to modernize as well.
Major competitors include the Italians, Turks, and French.  U.S. technology is
relatively unknown in this area.  Grain storage is an area of great interest
due to the severe shortage of silo storage facilities.

Other Industrial Equipment

Syria's central geographic location and the large amount of liquid capital
held abroad by its citizens give it the potential to resume its historical
position as a trade and industrial center for this region.  Textiles, consumer
goods, and other light industries will be particularly significant.