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Palau[pAlou´] Pronunciation Key, officially Republic of Palau, independent nation (1995 est. pop. 17,000), c.192 sq mi (497 sq km), W Pacific, in the W Caroline Islands. Belau, the native form of Palau, is sometimes used. Until 1994, Palau was administered by the United States as the last UN trust territory. It consists of about 200 islands and islets, of which Babelthuap, Oreor (the capital), Arakabesan, and Malakal are the most important. A new capital is being built on Babelthuap. Palau has a bicameral parliament, a president, and a vice president. Subsistence farming and some commercial fishing are the chief economic activities.
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