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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.
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Palau is a sovereign nation and conducts its own foreign relations. From its independence until May 2006, Palau had established diplomatic relations with 40 sovereign countries. Since then, it has established bilateral relations with over 10 other nations, raising the current number of diplomatic partners of Palau to over 50.
Palau was admitted to the United Nations on December 15, 1994, and has since joined several other international organizations. In 2004, Stuart Beck was appointed to serve as Palau's first permanent representative to the United Nations. Along with the other former Trust Territories, Palau is one of a handful of countries that regularly votes with Israel in the United Nations General Assembly.
Republic of China, Japan, Philippines and the United States have embassies in Palau.
Palau maintains embassies in the Philippines, Republic of China, Japan and the United States.
Taiwan
Palau has been strengthening relation with the Republic of China (ROC) in economic and political relations since 1994. In late December 1999, Palau officially established diplomatic relations with the ROC. Palau maintains an embassy in Taipei and ROC maintains an embassy in Koror. Exchanges between the two nations range from agriculture, culture, education, fishery, medical services, tourism and water supply infrastructure. In 2010, a petroleum company of Mainland China signed a US$40 million cooperation with Palau to explore oil reserve around the islands country.
Georgia
Palau and Georgia established diplomatic relations in October 2011.
India
As per the Ministry of External Affairs of India, India established diplomatic relations with Palau in April 1995. Development assistance from India has included a grant of US $ 149,841 for purchase of kitchen equipment for Palau National Hospital, US $ in 2008 for purchase of a boat and two pick-up trucks, US$ 100,000 in June 2010 for purchase of computers and grant of 2 ITEC scholarships in 2010-11. Palau has been supportive of issues of importance to India, particularly Indian candidature to international organizations. It supported India’s candidature for the non-permanent membership of the UN Security Council for the 2011-12 term. Presently, there are about 15 Indian nationals in Palau.
Israel
Palau established formal consular links with Israel, it was reported in early 2008.
Japan
Diplomatic relations between Japan and Palau were established in December 1994. Japan maintains an embassy at Koror. Japan is currently the second largest donor to Palau after the United States. Ministerial level visits are frequent between the two countries, and Palau is a popular tourist destination for Japanese travellers. Emperor Akihito and Empress Michiko made a state visit to Palau in April 2015.
Mongolia
Palau and Mongolia established diplomatic relations since 25 September 2013.
Nauru
In 2013, Palau will begin relations with Nauru.
Philippines
Palau and the Philippines had their first contact in around 2000 BC when Negrito pygmies from the Philippines reached Palau. The pygmy population disappeared around 1100 BC for an unknown reason. Both countries were incorporated by Spain in the Spanish East Indies, where the capital was Manila, during the 16th century and was formalized in Palau in the 17th century. Due to Spain's continuous wars with various European nations, Palau was eventually handed over to Germany, ending Philippine-Palau relations during that period. Formal diplomatic relations were again made in July 15, 1997, after Palau became independent from the United States. Currently, there are at least 5,000 Filipinos working in Palau, and few of Palau's students are educated in the Philippines, notably in Mindanao's top universities. The Philippine embassy in Koror closed on July 31, 2012. Palau and the Philippines are currently discussing the bordering of their maritime borders to negate any future clashes on the matter.
Russia
Palau and Russia have had established diplomatic relations since 28 November 2006.
Vietnam
Due to violation of Palau's waters and poaching, fishing ships from Vietnam were destroyed by Palau.