PALAU

Compiled from the November 2003 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Palau

PROFILE
GEOGRAPHY AND PEOPLE
HISTORY
GOVERNMENT
POLITICAL CONDITIONS
ECONOMY
FOREIGN RELATIONS
TRAVEL

PROFILE

Geography

Area: 458 sq. km. (about 190 sq. mi.) in eight main islands plus more than 250 islets.

Cities: Capital—Koror (pop. 13,303).

Terrain: varies from mountainous main island to smaller, reef-rimmed coral islands.

Climate: tropical.

People

Nationality: Noun and adjective—Palauan.

Population: 19,976. Age structure—35.4% under 18, 6.6% over 65.

Growth rate: 2.3%.

Ethnic groups: Palauans are Micronesian with Malayan and Melanesian elements.

Religion: Roman Catholic, Protestant, Modekng ei (an indigenous Palauan religion).

Languages: English (official in all 16 states), Palauan.

Education: Literacy—92%.

Health: Life expectancy—male 64.5 yrs.; female 70.8 yrs. Infant mortality rate—20/1,000.

Work force: Government—26%; tourism—10%; other services—28%; construction—11%, agriculture—3%.

Government

Type: Constitutional republic in free association with United States.

Independence: (from U.S.-administered UN trusteeship) October 1, 1994.

Constitution: January 1, 1981.

Branches: Executive—president (head of state and government), vice president, cabinet. Legislative—bicameral parliament elected by popular vote. Judicial—Supreme Court, National Court, Court of Common Pleas, and the Land Court.

Political parties: Palau Nationalist Party, Ta Belau Party.

Economy

GDP: $109.5 million.

GDP per capita: $5,482.

National income: (GDP + foreign assistance) $143 million.

National income per capita: $7,475.

GDP composition by sector: Public Administration 29%, Trade 24%, Construction 12%, Hotels/Restaurants 6%

Industry: Types—Government, tourism.

Trade: Exports ($9 million)—fish, garments, handicraft. Export markets—U.S., Japan, Taiwan. Imports ($86 million)—fuel, food and beverages, manufactured goods. Import sources—U.S. + Guam (48%), Japan, Singapore, Taiwan, Korea.

External debt: $20 million.

Currency: U.S. dollar.

GEOGRAPHY AND PEOPLE

The Republic of Palau consists of eight principal islands and more than 250 smaller ones lying roughly 500 miles southeast of the Philippines. The islands of Palau constitute part of the Caroline Islands chain. About 70% of the Palauan population lives in the capital city of Koror on Koror Island. The constitution calls for a new capital to be established on the bigger but less developed island of Babeldaob—the second-largest island in Micronesia after Guam.

HISTORY

Palau was initially settled more than 4, 000 years ago, probably by migrants from what today is Indonesia. British traders became prominent visitors in the 18th century, followed by expanding Spanish influence in the 19th century. Following its defeat in the Spanish-American War, Spain sold Palau and most of the rest of the Caroline Islands to Germany in 1899. Control passed to Japan in 1914 and then to the United States under UN auspices in 1947 as part of the Trust Territory of the Pacific Islands.

Four of the Trust Territory districts formed a single federate d Micronesian state in 1979, but the districts of Palau and the Marshall Islands declined to participate. Palau instead approved a new constitution and became the Republic of Palau in 1981, signing a Compact of Free Association with the United States in 1982. After eight referenda and an amendment to the Palauan constitution, the Compact went into effect on October 1, 1994, marking Palau's emergence from trusteeship to independence.

GOVERNMENT

Palau is a democratic republic with directly elected executive and legislative branches. Presidential elections take place every 4 years to select the president and the vice president, who run on separate tickets. The Palau National Congress (Olbiil era Kelulau) has two houses. The Senate has nine members elected nationwide. The House of Delegates has 16 members, one each from Palau's 16 states. All of the legislators serve 4-year terms. Each state also elects its own governor and legislature.

The Council of Chiefs is an advisory body to the president containing the highest traditional chiefs from each of the 16 states. The Council is consulted on matters concerning traditional laws and customs.

The judicial system consists of the Supreme Court, National Court, the Court of Common Pleas, and the Land Court. The Supreme Court has trial and appellate divisions and is presided over by the Chief Justice.

Principal Government Officials
Last Updated: 11/8/01

President: Remengesau, Tommy, Jr.

Vice President: Pierantozzi, Sandra S.

Min. of Administration: Sadang, Elbuchel

Min. of Commerce & Trade: Besebes, Otoichi

Min. of Community & Cultural Affairs: Merep, Alexander R.

Min. of Education: Katosang, Mario

Min. of Health: Pierantozzi, Sandra S.

Min. of Justice: Rosenthal, Michael J.

Min. of Resources & Development: Koshiba, Fritz

Min. of State: Shmull, Temmy

Ambassador to the US: Kyota, Hersey

Palau maintains an embassy at 1150 - 18th Street NW, Suite 750, Washington, DC 20036. Tel: 202-452-6814.

POLITICAL CONDITIONS

While calm in recent years, Palau witnessed several instances of political violence in the 1980s. The republic's first president, Haruo I. Remeliik, was assassinated in 1985, with the Minister of State eventually found to be complicit in the crime. Palau's third president, Lazurus Salii, committed suicide in September 1988 amidst bribery allegations. Salii's personal assistant had been imprisoned several months earlier after being convicted of firing shots into the home of the Speaker of the House of Delegates.

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.

ECONOMY

Palau's per capita GDP of $5482 makes it one of the wealthier Pacific Island states. Nominal GDP increased by an annual average of nearly 14% from 1983 to 1990, and by an annual rate of over 10% from 1991 to 1997. Growth turned sharply negative in 1998 and 1999 as a result of the Asian financial crisis, but grew by 3.3% and 3.1% in 2000 and 2001 respectively.

Tourism is Palau's main industry. Activity focuses on scuba diving and snorkeling among the islands' rich marine environment, including the Floating Garden Islands to the west of Koror. The number of visitors—85% of whom come from Japan, Taiwan, and the U.S.—reached nearly 67,000 in 1997, more than quadruple the level of a decade earlier. Tourism earned $67 million in foreign exchange for Palau in 1996, accounting for roughly half of GDP. Arrivals from Asian countries dropped in 1998 and 1999 due to the regional economic downturn and remained at about 57,000 per year for 2000-2002.

The service sector dominates the Palauan economy, contributing more than 80% of GDP and employing three-quarters of the work force. The government alone employs nearly 26% of workers. One of the government's main responsibilities is administering external assistance. Under the terms of the Compact of Free Association with the United States, Palau will receive more than $450 million in assistance over 15 years and is eligible to participate in more than 40 federal programs. The first grant of $142 million was made in 1994. Further annual payments in lesser amounts will be made through 2009. U.S. grants in 2001 totaled $20 million.

Construction is the most important industrial activity, contributing over 9% of GDP. Several large infrastructure projects, including the rebuilding of the bridge connecting Koror and Babeldaob Islands after its collapse in 1996 and the construction of a highway around the rim of Babeldaob, boosted activity at the end of 1990s.

Agriculture is mainly on a subsistence level, the principal crops being coconuts, root crops, and bananas. Fishing is a potential source of revenue, but the islands' tuna output dropped by over one-third during the 1990s.

The main economic challenge confronting Palau is to ensure the long-term viability of its economy by reducing its reliance on foreign assistance. Palau has created a trust fund to be drawn upon after the cessation of Compact grants, the value of which had grown to $140 million by the beginning of 2000, but has been static in 2001-2002.

FOREIGN RELATIONS

Palau gained its independence October 1, 1994 with the entry into force of the Compact of Free Association with the United States. Palau was the last Trust Territory of the Pacific Islands territories to gain its independence. Under the Compact, the U.S. remains responsible for Palau's defense for 50 years.

Palau is a sovereign nation and conducts its own foreign relations. Since independence, Palau has established diplomatic relations with a number of nations, including many of its Pacific neighbors. Palau was admitted to the United Nations on December 15, 1994, and has since joined several other international organizations.

Principal U.S. Embassy Officials

Koror (E), P.O. Box 6028, Republic of Palau 96940, Tel (680) 488-2920/90, Fax 488-2911. E-mail: [email protected]

Last Modified: Monday, December 15, 2003

TRAVEL

Consular Information Sheet
August 15, 2003

Country Description: The Republic of Palau is a constitutional democracy in free association with the United States. Palau is an archipelago consisting of several hundred volcanic and limestone islands and coral atolls, few of which are inhabited, and is politically divided into 16


states. Palau has a developing agrarian economy. There are tourist facilities for every budget.

Entry Requirements: Citizens and nationals of the United States of America must have either a valid passport or a combination of a valid identification document containing a photograph of the holder issued by the United States of America or any of its states, cities, counties, towns or other political subdivisions, and a document containing proof of citizenship of the United States of America. For further information on entry requirements, contact the Representative Office, 1150 18th St., N.W., Suite 750, Washington, D.C. 20036, tel. (202) 452-6814.

In an effort to prevent international child abduction, many governments have initiated procedures at entry/exit points. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian not present. Having such documentation on hand, even if not required, may facilitate entry/departure.

Safety and Security: For the latest security information, Americans traveling abroad should regularly monitor the Department's website at http://travel.state.gov, where the current Worldwide Caution, Travel Warnings and Public Announcements can be found.

The Overseas Citizens Services call center at 1-888-407-4747 can answer general inquiries on safety and security overseas. This number is available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays). Callers who are unable to use toll-free numbers, such as those calling from overseas, may obtain information and assistance during these hours by calling 1-317-472-2328.

Crime: The crime rate within the local community in Palau is moderate, with tourists usually not affected. Foreign residents can be the target of petty and sometimes violent crimes, as well as other random acts against person and property. The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

U.S. citizens may refer to the Department of State's pamphlet, "A Safe Trip Abroad," for ways to promote a trouble-free journey. The pamphlet is available by mail from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, via the Internet at http://www.gpoaccess.gov, or via the Bureau of Consular Affairs website at http://travel.state.gov.

Medical Facilities: Health facilities in Palau are adequate for routine medical care, but limited in availability and quality. Doctors and hospitals often expect immediate cash payment for health services.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including emergency services such as medical evacuations.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the U.S. may cost well in excess of $50,000. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, ascertain whether payment will be made to the overseas healthcare provider or if you will be reimbursed later for expenses you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Useful information on medical emergencies abroad, including overseas insurance programs, is provided in the Department of State's Bureau of Consular Affairs brochure, "Medical Information for Americans Traveling Abroad," available via the Bureau of Consular Affairs home page or autofax: (202) 647-3000.

Other Health Information: Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's website at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad, consult the World Health Organization's website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Palau is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Safety of Public Transportation: Good
Urban Road Conditions/Maintenance: Good
Rural Road Conditions/Maintenance: Fair
Availability of Roadside Assistance: Fair

Palau accepts a driver's license issued by a U.S. state or military authority. Roads in Koror are in good condition. Roads on the island of Babelthaob are under construction, with completion scheduled for 2004. The maximum speed limit is 25 miles per hour, but slower in congested areas. Passing slow-moving vehicles is prohibited.

For additional general information about road safety, including links to foreign government sites, see the Department of State, Bureau of Consular Affairs' website http://travel.state.gov/road_safety.html.

Aviation Safety Oversight: As there is no direct commercial air service by local carriers at present, or economic authority to operate such service between the U.S. and Palau, the U.S. Federal Aviation Administration (FAA) has not assessed Palau's Civil Aviation Authority for compliance with international aviation safety standards. For further information, travelers may contact the Department of Transportation within the U.S. at 1-800-322-7873, or visit the FAA's Internet website at http://www.faa.gov/avr/iasa.

The U.S. Department of Defense (DOD) separately assesses some foreign air carriers for suitability as official providers of air services. For information regarding the DOD policy on specific carriers, travelers may contact DOD at (618) 229-4801.

Palau International Airport is located on Babelthaob Island, near Koror Island. Direct commercial air service exists between Guam and Palau.

Customs Regulations: Firearms of any kind are strictly prohibited in Palau. The penalty for possession of a firearm or ammunition is up to fifteen years imprisonment. It is advisable to contact the Palau Representative Office in Washington, D.C. for specific information regarding customs requirements.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Palau laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Palau are strict, and convicted offenders can expect jail sentences and heavy fines.

Disaster Preparedness: General information about natural disaster preparedness is available via the Internet at http://travel.state.gov/crisismg.html,and from the U.S. Federal Emergency Management Agency (FEMA) at http://www.fema.gov/.

Children's Issues: For information on international adoption of children and international parental child abduction, please refer to our Internet site at http://travel.state.gov/children's_issues.html or telephone the Overseas Citizens Services call center at 1-888-407-4747. The OCS call center can answer general inquiries regarding international adoptions and will forward calls to the appropriate country officer in the Bureau of Consular Affairs. This number is available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays). Callers who are unable to use toll-free numbers, such as those calling from overseas, may obtain information and assistance during these hours by calling 1-317-472-2328.

Registration/Embassy Location: Americans living in, or visiting, Palau are encouraged to register at the Consular Section of the U.S. Embassy and obtain updated information on travel and security within Palau. The U.S. Embassy is located in Koror, the capital city, in an area known as Nger-mid Hamlet. There is no street address. The mailing address is: P.O. Box 6028, Koror, Palau 96940. The telephone number is (680) 488-2920. The fax number is (680) 488-2911. The Embassy does not issue passports; that function is performed by the Honolulu Passport Agency.