I.

Introduction

Palau, officially Republic of Palau, republic in the western Pacific Ocean, made up of about 200 of the Caroline Islands. The group includes the islands of Koror (known locally as Oreor; the administrative centre), Babelthuap (the largest island, 137 sq km/53 sq mi), Arakabesan, Malakal, and Peleliu, totalling about 488 sq km (188 sq mi) in land area, and spread in a chain about 650 km (400 mi) long. The islands are of mixed formation: some of volcanic origin, some coral. The highest point is 628 m (2,061 ft) on Koror. The capital is currently on Koror, but a new capital is being built in eastern Babelthuap at Melkeok. The inhabitants are of mixed Malay, Melanesian, Filipino, and Polynesian descent. Palauan, an Austronesian language, and English are the official languages. Palauan is a mother tongue for the majority of inhabitants. Palau has a population of 21,093 (2008 estimate), giving an average density of 46 people per sq km (119 per sq mi). Life expectancy in 2008 was 71 years. The waters around Palau contain dugongs, salt water crocodiles, and rare jellyfish and giant clams (Tridacna), as well as over 1,500 species of fish. The underwater environment of Palau is highly regarded and marine-based tourism is expanding. The Palau government has taken steps to conserve and protect its rich marine environment. The many rock islands known as the Floating Garden Islands are a noted reserve in the lagoon to the west of the main group of islands. It is here that the endangered dugong is found. Tropical rainforest covers much of the islands, but there are mangroves and even areas of savannah. Many Palauans have opposed the United States military presence (since World War II), particularly its efforts to establish nuclear plants. The Palau constitution bans nuclear weapons.

II.

Economy and Government

The main economic activities are subsistence fishing and farming. The country uses the US dollar as currency. A Compact of Free Association with the United States, which was established in October 1994, provides Palau with US$500 million in US aid over 15 years in return for the United States having the right to maintain military bases on Palau and exclusive military access to Palauan waters. In 1997 official development assistance amounted to US$4,814 per person. The most important foreign exchange earners are tourism, handicrafts, tuna fishing, and copra production. The population earns a per capita income of US$5,000, which in 1996 was twice that of the Philippines and much of Micronesia. Prospects for the tourist sector have been improved by the expansion of air travel in the Pacific.

The government consists of the bicameral Palau National Congress (Olbiil Era Kelulau), with a 16-member lower house (the House of Delegates) and a 16-member upper chamber or senate. The Congress is headed by a president, separately elected every four years. The last elections were held in November 2000. Tommy Remengesau is the president, also elected in 2000.

III.

History

The islands’ location between several other land masses means that they were settled by several distinct groups over the past 3,000 years. Ancient stone monoliths on the island of Ngarchelong are evidence of early Palauans. The first Europeans to visit the islands were Spanish sailors under Ruy Lopez de Villalobos; Spain retained control until 1899 when it sold them to Germany. Japan, as an allied power, seized the islands in 1914 at the outbreak of World War I, and they were formally mandated to Japan by the League of Nations in 1922. The Japanese established a naval base on the islands, which was seized by US forces in 1944, during World War II.

A.

Palau and the United States

After the war they became part of the US-administered UN Trust Territory of the Pacific Islands. In 1981 a constitution for a semi-independent Republic of Palau (Belau) was adopted. The Compact of Free Association, which was to enable the Republic of Palau to become completely independent from the United States in all areas except military defence, was repeatedly submitted to referendum and defeated in the 1980s and early 1990s, largely because of the reluctance to allow US vessels armed with nuclear weapons into the republic.

B.

Independence

After the US announcement in July 1992 that its vessels would no longer carry such weapons, the ninth referendum was successful, and the Republic became independent on October 1, 1994. In December 1994 Palau became a member state of the United Nations. The presidential election of November 2000 was won by Tommy Remengesau, who replaced Palau’s first president after independence, Kuniwo Nakamura. Remengesau was re-elected in November 2004.