Part 9/12:
Historically, Palao was under US administration after World War II until 1986, when it entered into the Compact of Free Association. The agreement grants the US military access to crucial maritime territories, making Palao geopolitically significant. Recently, the US and Palao agreed to a new 20-year funding arrangement—a sign of the deepening strategic partnership.
Nevertheless, Palao faces internal political pressures. President Whips has vocally opposed China’s attempts to influence or coerce the nation, especially through tourism and economic means. China’s ambassadoristic approach, offering to send millions of tourists and build hotel infrastructure if Palao rejects Taiwan, stands as a stark contrast to the island’s insistence on maintaining its diplomatic independence.