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Republic of Palau
Insular Area Summary for PalauHistory & Political Status Distances from placesWashington DC: 9,765 miles Political LeadersPresident: Johnson Toribiong Population & DemographyTotal population: 20,227 Economy & Income SourcesEstimated GDP: $164.3 million Labor Force & EmploymentTotal payroll employment: 11,144 Government FinancesTotal government revenues: $114.8 million OIA ContactsTanya Harris Joshua Historical OverviewHistory
Western contact with Palau first took place in l783 when the vessel of explorer, Captain Henry Wilson of England, was shipwrecked near the islands. The British dominated trade with Palau until 1885; however, Spain claimed control of Palau until 1899. In l899, Spain sold Palau, along with the rest of the Caroline and Northern Mariana Islands, to Germany following its defeat in the Spanish-American War. During the German administration of the island from 1899 to 1914, Germany increased Palau's economic potential by introducing coconut planting and phosphate mining. The Germans also introduced widespread sanitary measures to combat epidemics of influenza and dysentery. Those two diseases caused the population of Palau to fall from 40,000 to 4,000 in approximately 120 years. Japanese forces occupied Palau in 1914. The League of Nations recognized the Emperor of Japan as the mandatory power in a mandated territory which included the Northern Mariana Islands, the Marshall Islands, Yap, Chuuk, Pohnpei and Kosrae as well as Palau. (These islands along with Palau would later compose the Trust Territory of the Pacific after World War II.) The Japanese increased efforts in mining, agriculture, and commercial fishing. Palau became a closed military area in 1938. Fighting during World War II took place throughout Palau, principally in Peleliu, Angaur, and Koror.
In 1947, the United Nations created the Trust Territory of the Pacific Islands (TTPI) and named the United States as the TTPI's administering authority. Palau was the last TTPI district. The TTPI originally included six districts, which now comprise four Islands jurisdictions: an insular area in political union with and under the sovereignty of the United States (the Commonwealth of the Northern Mariana Islands) and the three freely associated states (the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau). In the 1960's, President Kennedy introduced the Peace Corps into Micronesia. Many Federal programs, especially those in the fields of health and education, were also extended to the Trust Territory. In the late 1970's, the United States embarked upon an ambitious capital improvement program (CIP) with the goal of building major infrastructure projects (airport, dock, roads, and water, power, and sewer systems) in each of the district centers. Funding of these CIP projects was completed prior to commencement of the Compact. Compact
On October 1, 1994, the Compact of Free Association between the United States and Palau entered into force. Having been signed in Palau by American and Palauan representatives on January 10, 1986, the Compact is the core of the Compact of Free Association Act (U.S. Public Law 99-658) ( Under the Compact, the status of free association recognizes Palau as a sovereign state with the capacity to conduct foreign affairs consistent with the terms of the Compact. The Compact places full responsibility for Palau's defense with the United States. The Compact also provides grant funds and Federal program assistance, principally through the Department of the Interior. Under the Compact, the State Department is responsible for government-to-government relations, while Interior is responsible for the oversight and coordination of U.S. programs and funding assistance. The UN and Bilateral RelationsPalau became a recognized and full fledged member of the United Nations on December 15, 1994. It currently has bilateral relations with 40 countries, which includes the United States, the European Union and Taiwan. Click here for a complete list of countries with which Palau has established relations. Status of Palauan citizens in the U.S.See the U.S. Department of Homeland Security, USCIS Factsheet ( Employment Requirements for Palauan citizens in the U.S.
Palauan citizens are eligible to be employed in the United States and must have the Employment Authorization Document which is issued by the U.S. Department of Homeland Security, Citizenship & Immigration Services. Click here for Information on Employment Eligibility (
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The Republic of Palau (Palau) emerged from the Trust Territory of the Pacific Islands (TTPI) which the United States administered on behalf of the United Nations from 1947 to 1978. Palau was the TTPI’s last district to choose its political future and become a sovereign country. Upon independence in 1994, Palau entered into a 50-year Compact of Free Association with the United States, similar to that of its neighbors, the Federated States of Micronesia and the Republic of the Marshall Islands. Palau also joined the United Nations in 1994. Under the Compact, the United States, through the Department of the Interior, provides economic and financial assistance, defends Palau’s territorial integrity, and allows uninhibited access by Palauan citizens to the United States in return for exclusive and unlimited access to Palau’s land and waterways for strategic purposes. The close strategic and economic ties between the United States and Palau that go back to the end of World War II are also reflected in the fact that hundreds of Palauan citizens serve in all branches of the U.S. Armed Forces and choose to further their education in the United States. Palau also uses the U.S. dollar as its currency.
![Desomel Island, Palau. [Photo courtesy of Amb. Kyota]](../images/ambkyota.gif)
![Palau Capitol. [Photo courtesy of Amb. Kyota]](../images/palaucapitol.gif)
![Palau Compact Road. [Photo courtesy of Amb. Kyota]](../images/palaucompact-road.gif)
), which was enacted on November 14, 1986. Financial provisions of the Compact terminate in 2009.![JDolphins in Palau. [Courtesy of Palau Visitor's Authority]](../images/Palaudolphins.gif)