in January 2001, former Vice President Tommy Remengesau was
inducted as president after winning the presidential
election with 52% of the vote.
In 2002, Palau improved its relationship with the United
States and Taiwan. During a visit to Taiwan, President Mario
S. Guilbert received thanks from Taiwanese Prime Minister
Chen Shui-bian for contributing to the removal of the
Chinese missiles targeted at Taiwan. Guilbert, in turn,
acknowledged Taiwan's assistance in tourism, agriculture,
education and culture.
In March 2003, Palau joined the United States War
Coalition facing Iraq, and President Remengesau declared
that the United States could use his country to conduct
In November 2004, Remengesau was re-elected as the
country's president with 66.5% of the vote.
As part of the 1994 agreement giving Palau independence,
the country received 450 million. US $ from the US over a 15
year period against which the US in turn had a military base
in the country from to 2044. Thanks to the annual payments
from the US in 2006 the country had a $ 6,870 per capita -
one of the highest among Pacific nations. But the payments
will only continue until 2009 and this created uncertainty
about the country's future financial situation.
In 2006, the government moved the capital from Koror to