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The former colonial power, Portugal, has been focusing on enhancing the capabilities of the STP Coast Guard, and agreed to provide the force with training under a two-year military co-operation agreement signed in 2004.
The agreement was aimed at modernising and restructuring the armed forces in general.
It was agreed that Portugal would provide training, education, logistical support and health care to the forces.
It was reported that one of the aims of the programme was to prepare São Toméan troops for international peacekeeping missions. Previous phases of reform saw the armed forces downsized considerably in the early 1990s in line with a reduction in regional threat assessment.
There was also reorganisation after 1995, when disgruntled junior elements of the military briefly overthrew the civilian government and demanded better pay and conditions.
Domestic military funding has been consistently very low and only responsive to direct action of unpaid troops through insurrection.
As with the rest of the budget, military allocations are more dependent on foreign aid than on domestic resources.
Restructuring since the coup of July 2003 saw the army reduced from 600 and retrained with foreign assistance.
The development of paramilitary forces, including the coast guard, police and a gendarmerie unit, has been given priority.

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