Part 645

Independence: 1 October 1994 (from the US-administered UN Trusteeship)

National holiday: Constitution Day, 9 July (1979)

Constitution: 1 January 1981

Legal system: based on Trust Territory laws, acts of the legislature, municipal, common, and customary laws

Suffrage: 18 years of age; universal

Executive branch: chief of state: President Kuniwo NAKAMURA (since 1 January 1993) and Vice President Tommy E. REMENGESAU Jr. (since 1 January 1993); note - the president is both the chief of state and head of government head of government: President Kuniwo NAKAMURA (since 1 January 1993) and Vice President Tommy E. REMENGESAU Jr. (since 1 January 1993); note - the president is both the chief of state and head of government cabinet : Cabinet elections: president and vice president elected on separate tickets by popular vote for four-year terms; election last held 11 November 1996 (next to be held NA November 2000) election results : Kuniwo NAKAMURA reelected president; percent of vote - Kuniwo NAKAMURA 64%, Chief Ibedul Yutuka GIBBONS 36%; Tommy E. REMENGESAU Jr. reelected vice president; percent of vote - Tommy E. REMENGESAU Jr. 69%, Kione ISECHAL 31%

Legislative branch: bicameral Parliament or Olbiil Era Kelulau (OEK) consists of the Senate (14 seats; members elected by popular vote on a population basis to serve four-year terms) and the House of Delegates (16 seats - one from each state; members elected by popular vote to serve four-year terms) elections: Senate - last held 11 November 1996 (next to be held NA November 2000); House of Delegates - last held 11 November 1996 (next to be held NA November 2000) election results: Senate - percent of vote by party - NA; seats by party - NA; House of Delegates - percent of vote by party - NA; seats by party - NA

Judicial branch: Supreme Court; National Court; Court of Common Pleas

Political parties and leaders: Palau Nationalist Party, Polycarp BASILIUS

International organization participation: ESCAP, SPC, SPF, UN, WHO

Diplomatic representation in the US: chief of mission: Ambassador (vacant); Charge d'Affaires ad interim David A. ORRUKEM chancery: 2000 L Street NW, Suite 407, Washington, DC 20036 telephone : (202) 452-6814 FAX: (202) 452-6281

Diplomatic representation from the US: chief of mission : Thomas C. HUBBARD (resident in Manila) embassy: address NA, Koror mailing address: P.O. Box 6028, Republic of Palau 96940 telephone: 488-2920, 2990 FAX: 488-2911

Flag description: light blue with a large yellow disk (representing the moon) shifted slightly to the hoist side

Economy

Economy - overview: The economy consists primarily of subsistence agriculture and fishing. The government is the major employer of the work force, relying heavily on financial assistance from the US. The population, in effect, enjoys a per capita income of $5,000, twice that of the Philippines and much of Micronesia. Long-run prospects for the tourist sector have been greatly bolstered by the expansion of air travel in the Pacific and the rapidly rising prosperity of leading East Asian countries. Reducing budgeted operating expenditures - which have increased 56% from 1989 to 1993 - will be the biggest challenge for the government over the next several years.

GDP: purchasing power parity - $81.8 million (1994 est.) note: GDP numbers reflect US spending

GDP - real growth rate: NA%

GDP - per capita: purchasing power parity - $5,000 (1994 est.)

GDP - composition by sector: agriculture: NA% industry: NA% services: NA%

Inflation rate - consumer price index: NA%

Labor force: NA by occupation: NA

Unemployment rate: NA%

Budget: revenues : $21 million expenditures: $57 million, including capital expenditures of $NA (1996 est.)

Industries: tourism, craft items (from shell, wood, pearls), some commercial fishing and agriculture

Industrial production growth rate: NA%

Electricity - capacity: NA kW

Electricity - production: NA kWh

Electricity - consumption per capita: NA kWh