Embattled Island: Palau’s Struggle for Independence

Palau was the last trusteeship, not only of the United States but the last trusteeship in the world. For 25 years the United States tried to negotiate an agreement - a compact - with Palau. Under this compact, Palau would gain its independence as a Freely Associated State and a large amount of money, $500 million, while the US obtained certain military base rights and passage of nuclear power ships and submarines. The compact took on enormous symbolic importance throughout the world because of a provision in the Palau Constitution that Palau could not grant the US nuclear rights without the approval of 75% of the people of Palau.