3. Balance of Pavments 142. The balance-of-payments situation is governed by three key factors - the decline of the rural secCorl the strength of the dollar1 and mining output, which generates export earnings and thus provides foreign exchange to cover imports. 143. Bauxite and aluminium account for 99 per cent of export earnings- Guinea has recently begun exporting diamonds (50rO00 carats during the first four months of 1985). Agricultural exports (pineapple and coffee) are now of marginal impor ta nce . 144. Total imports (mainly, foreign-financed investments of the Planninq Ministry, food aid and the general import programme) amounted to $380 milLion in 1983' 57 per cent of which were channell.ed through public enterprises, 36 per cent through mining companies and 7 per cent through private companies under licence. 145. In spite of its balance-of-trade surplusr Guinears current account shows large deficits owing to the Iarge negative figure for net transfers (representing repatriation of the income from the mining companiesr investments and of the services which they use for their operations). The balance on capital account is not sufficient to make up the deficit on current accounf. 146. At the end of 1983, the outstanding foreign debt, excluding arrears, amounted to $1.2 biltion, or about 75 per cent of GDP, distributed as follows: 26 per cent owed to the countries of the Development Assistance Committee (DAC), 47 per cent to the socialist countries and 17 per cent to multilateraL institutions. Despite the relatively favourable terms of the loans, Guinea has been unable to meet its payments. At the end of 1983, arrears amounted to nearly $200 million, of which three guarters represented principal, owed mainly to DAC countries since the arrears owed to the Eastern European countries are cancelled out by 56 per cent of
**Analysis**
The text appears to be discussing the economic situation of Guinea, specifically the country's balance of payments, trade, and debt. The text mentions the importance of mining output, exports, and imports, as well as the impact of foreign debt on the country's economy. This suggests that the text is focused on economic development and international trade.

**Category**
International trade, Economic development