More than 200 volcanic and coral islands, many of them surrounded by a single barrier reef, make up the northern Pacific nation of Palau.
Its tropical waters are home to an abundance of marine life, making Palau a paradise for divers.
The scenery ranges from white sandy beaches to dense jungle. Palau tries to protect its wildlife from hunters and poachers. It favours sustainable tourism.
Palau became independent in 1994, after being part of a United Nations trust territory administered by the US for 47 years.
It relies on financial aid from the US, provided under a Compact of Free Association which gives the US responsibility for Palau's defence and the right to maintain military bases there. Direct aid is set to wind up in 2009.
Tourism is low key, though growing in economic importance. Many visitors come from Taiwan, with which Palau has diplomatic ties. Taiwanese aid boosts the economy. The government is Palau's largest employer.
Monoliths and other relics are reminders of an ancient culture that thrived on the islands, but Palau's recent history has been dominated by outside influences - from Spain, Britain, Germany, Japan and the US. Palau saw some of the region's fiercest fighting in World War II.
Though embracing some Western trappings, many Palauans identify with their traditional culture and its codes and rites.
Politics in Palau sometimes has been lively; the nation's first president was assassinated in 1985.
President (outgoing): Tommy Remengesau
Tommy Remengesau was re-elected for a second four-year term in November 2004.
After his win, the president said economic growth needed to go hand in hand with the preservation of the environment.
Mr Remengesau says he wants to make Palau less dependent on American aid. He believes Palau should be an exclusive tourist destination, warning that the islands are not equipped to cope with a deluge of visitors.
Mr Remengesau is due to step down as president in January 2009, having served the maximum of two four-year terms.
He will be succeeded by Johnson Toribiong, Palau's former ambassador to Taiwan, who won the presidential election of November 2008.
The press
Television
There are no television stations based in Palau, but most households are hooked up to cable TV, which rebroadcasts US and satellite TV channels.
Radio
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