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=== Independence === [[File:TTPI High Commissioner and staff.jpg|thumb|TTPI High Commissioner and staff, 1960s]] Four of the Trust Territory districts joined and formed the Federated States of Micronesia in 1979, but the districts of Palau and the [[Marshall Islands]] voted against the proposed constitution. Palau, the westernmost cluster of the Carolines, instead opted for independent status in 1978, which was widely supported by the Philippines, [[Taiwan]], and Japan. It approved a new constitution and became the Republic of Palau on 1 January 1981.<ref>{{Cite news |title=Pacific Island Battleground Now the Republic of Belau |agency=Associated Press |location=Bangor, Maine, USA |date=23 January 1981 |url=https://news.google.com/newspapers?id=xHI-AAAAIBAJ&pg=1189,3024338&dq=micronesia&hl=en |access-date=18 November 2020 |archive-date=11 March 2023 |archive-url=https://web.archive.org/web/20230311194807/https://news.google.com/newspapers?id=xHI-AAAAIBAJ&pg=1189,3024338&dq=micronesia&hl=en |url-status=live }}</ref> It signed a [[Compact of Free Association]] with the United States in 1982. In the same year, Palau became one of the founding members of the [[Nauru Agreement]]. The compact entered into force on 1 October 1994,<ref>{{cite news |title=Palau Gains Independence on Saturday |agency=Associated Press |location=Salt Lake City, Utah, USA |date=30 September 1994 |url=https://news.google.com/newspapers?id=LOZHAAAAIBAJ&pg=5945,7792568&dq=palau&hl=en |access-date=18 November 2020 |archive-date=11 March 2023 |archive-url=https://web.archive.org/web/20230311194829/https://news.google.com/newspapers?id=LOZHAAAAIBAJ&pg=5945,7792568&dq=palau&hl=en |url-status=live }}</ref> concluding Palau's transition from trusteeship to independence<ref name="gao-08-732_p7">{{cite journal |date=10 June 2008 |title=Compact of Free Association: Palau's use of and accountability for U.S. assistance and prospects for economic self-sufficiency |url=http://www.gao.gov/assets/280/276299.pdf |url-status=live |journal=Report to Congressional Committees |volume=GAO-08-732 |pages=1β2 |archive-url=https://web.archive.org/web/20221111071210/https://www.gao.gov/assets/280/276299.pdf |archive-date=11 November 2022 |access-date=7 September 2014}}</ref> as the last portion of the [[Trust Territory of the Pacific Islands]] to secure its independence pursuant to [[United Nations Security Council Resolution 956|Security Council Resolution 956]]. Palau also became a member of the [[Pacific Islands Forum]] but withdrew in February 2021 after a dispute regarding [[Henry Puna]]'s election as the forum's secretary-general.<ref>{{cite news|last=Cave|first=Damien|date=5 February 2021|title=Pacific Islands' Most Important Megaphone Falls Into Discord|work=The New York Times|url=https://www.nytimes.com/2021/02/05/world/asia/pacific-islands-forum.html|access-date=8 February 2021|issn=0362-4331|archive-date=9 February 2021|archive-url=https://web.archive.org/web/20210209014114/https://www.nytimes.com/2021/02/05/world/asia/pacific-islands-forum.html|url-status=live}}</ref><ref>{{cite web|date=5 February 2021|title=Key Pacific body in crisis as Palau walks out|url=https://www.france24.com/en/live-news/20210205-key-pacific-body-in-crisis-as-palau-walks-out|access-date=8 February 2021|publisher=France 24|archive-date=5 February 2021|archive-url=https://web.archive.org/web/20210205091947/https://www.france24.com/en/live-news/20210205-key-pacific-body-in-crisis-as-palau-walks-out|url-status=live}}</ref> Legislation making Palau an "offshore" financial center was passed by the [[United States Senate|U.S. Senate]] in 1998.<ref>{{Cite web |title=Palau (11/03) |url=https://2009-2017.state.gov/outofdate/bgn/palau/36843.htm |access-date=13 April 2022 |website=U.S. Department of State |archive-date=12 November 2022 |archive-url=https://web.archive.org/web/20221112051748/https://2009-2017.state.gov/outofdate/bgn/palau/36843.htm |url-status=live }}</ref> In 2005, Palau led the [[Micronesia Challenge]], which would conserve 30% of near-shore coastal waters and 20% of forest land of participating countries by 2020. In 2009, Palau created the world's first [[shark sanctuary]], banning commercial shark fishing within its waters. In 2012, the [[Rock Islands]] of Palau was declared as a [[UNESCO World Heritage Site]].<ref>{{cite web|url=https://whc.unesco.org/en/statesparties/PW/|title=Palau β UNESCO World Heritage Centre|first=UNESCO World Heritage|last=Centre|publisher=UNESCO|access-date=26 December 2019|archive-date=27 December 2019|archive-url=https://web.archive.org/web/20191227075754/http://whc.unesco.org/en/statesparties/PW/|url-status=live}}</ref> In 2015, Palau became a member of the [[Climate Vulnerable Forum]] under the chairmanship of the Philippines, and at the same time, the country officially protected 80% of its water resources, becoming the first country to do so.<ref>{{cite web|url=https://news.nationalgeographic.com/2015/10/151028-palau-marine-protected-area-official-oceans-animals-conservation/|title=Tiny Island Nation's Enormous New Ocean Reserve is Official|date=28 October 2015|access-date=20 March 2018|archive-date=20 March 2018|archive-url=https://web.archive.org/web/20180320170753/https://news.nationalgeographic.com/2015/10/151028-palau-marine-protected-area-official-oceans-animals-conservation/|url-status=dead}}</ref> The protection of its water resources made significant increases in the country's economy in less than two years.<ref>{{cite web|url=https://news.nationalgeographic.com/2017/03/palau-marine-protected-area-ocean-fish/|title=This Small Island Nation Makes a Big Case For Protecting Our Oceans|date=3 April 2017|access-date=20 March 2018|archive-date=20 March 2018|archive-url=https://web.archive.org/web/20180320170304/https://news.nationalgeographic.com/2017/03/palau-marine-protected-area-ocean-fish/|url-status=dead}}</ref> In 2017, it became the first state in the world to establish an eco-promise, known as the ''Palau Pledge'', which is stamped on local and foreign passports.<ref>{{Cite web|url=https://www.scmp.com/news/asia/australasia/article/2123491/palau-pledge-pacific-island-forces-visitors-sign-eco-promise|title=Pacific island forces visitors to sign eco-pledge|date=8 December 2017|website=South China Morning Post|access-date=23 December 2020|archive-date=7 December 2022|archive-url=https://web.archive.org/web/20221207035653/http://www.scmp.com/news/asia/australasia/article/2123491/palau-pledge-pacific-island-forces-visitors-sign-eco-promise|url-status=live}}</ref> In 2018, Palau and the Philippines began re-connecting their economic and diplomatic relations. The Philippines supported Palau to become an observer state in [[ASEAN]].
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