The World : Palau OKs Pact With U.S.

Voters in the western Pacific island chain of Palau have overwhelmingly approved a political and economic agreement with the United States. The unofficial tally from the Friday referendum showed 73% of the voters supporting the Compact of Free Association. Under the pact, Palau would receive nearly $1 billion in U.S. economic aid over a 50-year term and the 400-mile-long archipelago would become self-governing. Palau, with about 14,000 residents living on eight inhabited islands, is the last U.N. trusteeship. Since 1947, it has been administered by the United States.