Palau gains independence through Compact of Free Association with the United States.
| Political |
Updated By: History Editorial Network (HEN)
Published: | Updated:
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The Compact of Free Association between Palau and the United States came into effect, officially marking Palau's de jure independence. This transition followed years of negotiation and a definitive plebiscite in Palau, where the majority of its citizens expressed support for the agreement. Palau, comprising over 300 islands in the western Pacific Ocean, sought to establish its own national identity distinct from the United States while still benefiting from certain security and economic arrangements with the U.S.
Under the compact, Palau retained its sovereignty and control over its domestic and foreign policies. The United States, in return, agreed to provide financial assistance, defense, and other benefits. This financial aid included multi-million dollar economic grants and the establishment of trust funds intended to support Palau's development goals. The agreement ensured that the United States would have strategic access to Palau's territories, enhancing its strategic presence in the Pacific region.
Prior to this agreement, Palau was part of the United Nations Trust Territory of the Pacific Islands, administered by the United States. The shift to independence under the Compact of Free Association marked a significant transition from an era of trusteeship to self-governance.
The compact also had implications for Palau's citizens, who were granted the right to travel and work in the United States without a visa. This facilitated migration and exchange, bolstering personal and economic ties between the two nations. Additionally, the agreement contributed to regional stability and underscored the continued geopolitical interest of the United States in the Pacific.
The implementation of the Compact of Free Association made Palau one of the world's youngest and smallest independent countries, with a population of about 20,000 people spread across its islands. Palau's economy, primarily based on tourism, fishing, and agriculture, stood to benefit from the financial assistance and development programs included in the agreement.
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Primary Reference: History of Palau - Wikipedia
Location : Palau

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