PIP: Attention in this discussion of Egypt is directed to the following: geography; the people; history; government and political conditions; the economy; defense; foreign relations; and relations between Egypt and the US. The population totaled 50.5 million in 1986 with an annual growth rate of 2.8%. The infant mortality rate is 102/1000 (1986), and life expectancy is 58.3 years. Located in the northeastern corner of Africa, Egypt has a land area of about 1 million square kilometers and is bounded by the Mediterranean Sea, Libya, Sudan, the Red Sea, the Gulf of Aqaba, and Israel. Egypt is the most populous country in the Arab world. Egyptians are a fairly homogenous people of Hamitic origin. Mediterranean and Arab influences appear in the north, and there is some mixing in the south with the Nubians of northern Sudan. Egypt has been a unified state for over 5000 years, and archeological evidence indicates that a developed Egyptian society has existed for considerably longer. The constitution of Egypt provides for a strong executive with authority vested in an elected president who can appoint 1 or more vice presidents, a prime minister, and a cabinet. Egypt's legislative body has 458 members -- 448 popularly elected and 10 appointed by the president. Power is concentrated in the hands of the president and the National Democratic Party's majority in the People's Assembly, but opposition parties organize, publish their views, and represent their followers at various levels in the political system. The process of gradual political liberalization begun by Sadat has continued under Mubarak. In fiscal year 1987 the gross domestic product (GDP) reached about US$30 billion. Agriculture and services each contribute about 1/3 of GDP; the remainder comes from industry, petroleum, mining, electricity, and construction. At this time, the Egyptian economy faces several challenges. In 1986 the government of Egypt initiated a major review of economic policy and initiated an economic reform program aimed at simplifying the exchange rate system and introducing a greater reliance on market forces and an expanded role for the private sector. President Mubarak has reaffirmed and built upon Sadat's policies, placing heavy emphasis on negotiated solutions to the Arab-Israeli dispute, peace with Israel, and close ties with the US. In fiscal year 1987 US economic and military aid to Egypt reached a level of $2305 million. The aid is designed to assist Egypt's economic development and support US-Egyptian cooperation.