The Freely Associated States--the Marshall Islands, Micronesia, and Palau--have been the subject of increasing Chinese influence. The authors examine the implications of these activities for defense and foreign policy interests of the United States.

The compact took on enormous symbolic importance throughout the world because of a provision in the Palau Constitution that Palau could not grant the U.S. nuclear rights without the approval of 75% of the people of Palau. A number of groups fought against ratification of the compact by Palau. They viewed Palau as the symbol of a nuclear free Pacific and the hope for an environmental preserve against great power imperialism and military intrusion in the Pacific.

The Compact of Free Association between the Republic of Palau and the U.S. entered into force on Oct. 1, 1994, with the U.S. interest of promoting Palau¿s self-sufficiency and economic advancement. The compact and its related subsidiary agreements provide for a 15-year term of economic assistance. In FY 2009, the two governments must review the terms of the compact and related agreements and agree on any modifications. This is a report on: (1) the provision of compact and other U.S. assistance to Palau in FY 1995-2009; (2) Palau¿s and U.S. agencies¿ efforts to provide accountability over Palau¿s use of fed. funds in 1995-2006; and (3) Palau¿s prospects for achieving economic self-sufficiency. Includes recommendations. Illus.

America's efforts at economic development in the Caroline, Mariana, and Marshall Islands proved to be about transforming in dramatic fashion people who occupied real estate deemed vital to American strategic concerns. Called "Micronesians," these island people were regarded as other, and their otherness came to be seen as incompatible with American interests. And so, underneath the liberal rhetoric that surrounded arguments, proposals, and programs for economic development was a deeper purpose. America's domination would be sustained by the remaking of these islands into places that had the look, feel, sound, speed, smell, and taste of America - had the many and varied plans actually succeeded. However, the gap between intent and effect holds a rich and deeply entangled history. Remaking Micronesia stands as an important, imaginative, much needed contribution to the study of Micronesia, American policy in the Pacific, and the larger debate about development. It will be an important source of insight and critique for scholars and students working at the intersection of history, culture, and power in the Pacific.

Gibraltar’s Detailed Assessment Report on Anti-Money Laundering (AML) and Combating the Financing of Terrorism is reviewed. The principal AML risk to Gibraltar is lodged in its professional sector, which is likely to be involved in the layering and integration of proceeds of crime. There is also some risk to Gibraltar at the placement stage, in connection with drug trafficking, migrant smuggling, and organized crime in southern Spain. The Financial Services Commission in Gibraltar has established a strong, risk-based framework for financial institutions for AML.