Passport to Palau: A little bit of history

The ancient history of Palau is slightly muddled in mystery, but artifacts found on the islands can be carbon-dated back to as early as 1,000 B.C. It is believed that the first people to the islands came from Malaysia, New Guinea, and Polynesia. There were no remarkable encounters with people from Europe until 1783 when an Englishman, Capt. Henry Wilson, was shipwrecked on a reef off of Ulong - a rock island between Koror and Peleliu. Koror's High Chief, Ibedul, came to the assistance of Wilson and his men, who ended up staying for 3 months to rebuild their ship. After that time, many foreign explorers came to Palau's shores.

Palau was made part of the Spanish East Indies (aka the Caroline Islands) in 1885 by a declaration from Pope Leo XIII. Following Spain's defeat in the Spanish-American War, the islands were sold to Germany in 1899. Possession of Palau was once again relinquished following WWI. Under conditions of the 1919 Treaty of Versailles, control of the islands was now passed on to Japan. Japanese influence on Palauan culture was immense, turning the economy from one of subsistence to a market economy, and property ownership transitioned from clan ownership to that of individual ownership. Koror became the administrative center for all Japanese possessions in the South Pacific in 1922, resulting in the town becoming a stylish metropolis with factories, shops, public baths, restaurants and pharmacies.

During WWII, battles between American and Japanese forces were fought on Palau's islands, including the major Battle of Peleliu. In 1947, after the end of the war Palau, along with other Pacific Islands, was made part of the U.S.-governed Trust Territory of the Pacific Islands. As part of its mandate, the U.S. was to be responsible for improving Palau's infrastructure and educational system so that these islands could become a self-sufficient nation. In 1979, Palau voted against becoming part of the newly independent Federated States of Micronesia. It wasn't until 1994 that Palau claimed is self-sufficiency and gained its full sovereignty upon signing the Compact of Free Association with the U.S.

Today Palau is politically a presidential republic in free association with the U.S. In turn, the U.S. provides defense, funding, and access to social services. Palau's economy is based mainly on tourism, subsistence agriculture, and fishing, with a significant portion of the Gross National Product derived from foreign aid.