- History of Palau
Palau was initially settled over 4,000 years ago, probably by migrants from what today isIndonesia . British traders became prominent visitors in the18th century , followed by expanding Spanish influence in the19th century . Following its defeat in theSpanish-American War ,Spain sold Palau and most of the rest of theCaroline Islands toGermany in1899 . Control passed toJapan in1914 and duringWorld War II the islands were taken by the United States in 1944, with the costlyBattle of Peleliu between September 15 and November 25 with more than 2,000 Americans and 10,000 Japanese killed. The islands passed formally to theUnited States underUnited Nations auspices in1947 as part of the Trust Territory of thePacific Islands .Four of the Trust Territory districts formed a single federated
Micronesia n state in1979 , but the districts of Palau and theMarshall Islands declined to participate. Palau, the westernmost cluster of the Caroline Islands, instead opted for independent status in1978 , approved a new constitution and became the Republic of Palau in1981 , and signed aCompact of Free Association with the United States in1982 . After eight referendums and an amendment to the Palauan constitution, the Compact was ratified in1993 and went into effect onOctober 1 ,1994 , marking Palau independentde jure (after Palau was independentde facto sinceMay 25 ,1994 , when the trusteeship cancelled).Legislation making Palau an "offshore" financial center was passed by the Senate in 1998. In 2001, Palau passed its first bank regulation and anti-money laundering laws.
External links
* [http://www.state.gov/r/pa/ei/bgn/1840.htm U.S. State Department Background Note: Palau]
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