Timber unloading yard at a new forest industries plant in a mountain village between Thimphu and Phuntsholing. The factory, managed by an FAO expert, produces plywood, fibreboard, panels and construction timber. Only recently have projects begun to develop Bhutanà??orest industries because the richest wooded areas are high and isolated by lack of roads. - - Forestry and Agriculture Development. Bhutan, a small, landlocked, mountainous Himalayan Asian country between China and India, was all but closed to the outside world until about ten years ago. Its 1.2 million inhabitants are mostly subsistence farmers and poor rural folk who live mainly off the products of the vast forests. Thimphu, the capital, has but 20 000 inhabitants. Yet, Bhutan is rich in natural resources and could become a prosperous nation. The U.N. Food and Agriculture Organization is helping the Kingdom to develop its resources and, in 1985, had over 20 projects there providing aid and training to farmers and livestock owners, establishing modern forest industries, training extension workers, improving food security and commercial food processing and restocking the many inland lakes and rivers with hardier fish species.