PIP: This discussion of Bhutan focuses on the following: the people; geography; history; government and political conditions; the economy; defense; and foreign relations. In 1982 the population was estimated to total 1.2 million with an annual growth rate of 2.1%. Life expectancy is 43 years. The population can be divided into 3 broad ethnic categories -- Bhote, Nepalese, and various tribal groups. Bhutan is a landlocked Himalayan country located between the Tibetan plateau and the Assam-Bengal Plains of northeastern India. Bhutan's early history is shrouded in obscurity, but the country's past seems to resemble that of rural medieval Europe. The consolidation of Bhutan began 300 years ago, when Shadbung Ngawang Nangyal, a lama from Tibet, acquired the title of "dharma raja." By the 18th and 19th centuries, the local territorial governors had grown increasingly powerful, and the "deb raja" (minister) frequently became a mere figurehead. When India became independent in 1947, it became necessary to draw up a new treaty. An Indo-Bhutan treaty was signed in 1949 permitting Bhutan to control its internal affairs but requiring it to obtain the advice of India in matters of foreign relations. Traditionally a loose theocracy, and since 1907 an autocracy, Bhutan is adopting a rudimentary system of representative government. No political parties function within the Bhutanese governmental structure. Bhutan is divided into 18 districts, each headed by a district officer appointed by the king. Bhutan is self sufficient in food even though meadows and grasslands cover much of the country. Terrace agriculture is practiced wherever possible. Large forests provide the potential for future lumber or paper processing plants. Traditionally, Bhutan's trade was with Tibet. Since China's seizure of Tibet in 1950, Bhutan has channeled most of its trade toward India. The foreign assistance Bhutan has received beyond that provided by India has come through the Colombo Plan, an economic development organization for Asian countries. The Royal Bhutan Army was formed into a regular military force in the early 1950s following the Chinese invasion of Tibet. With Indian sponsorship, Bhutan became a member of the UN in 1970. No formal diplomatic relations exist between the US and Bhutan, although informal and friendly contact is maintained through the Bhutanese Embassy at New Delhi.