History
Spain claimed the Caroline Islands (FSM and Palau) in 1855 but, following Spain's defeat in the Spanish-American War, the islands were sold to Germany (1899).

During the First World War (1914-1918) Micronesia (FSM) was occupied by the Japanese. After the War, the League of Nations allowed Japanese colonization.

At the end of the Second World War (1939-1945) the islands passed to the Americans. The US administration began in 1947 - the islands were part of the Trust Territory of the Pacific Islands, under United Nations authority. Other members were the Marshall Islands, the Northern Mariana Islands and Palau.

In 1979 the States of Chuuk, Kosrae, Pohnpei, and Yap became the Federated States of Micronesia; the Marshall Islands, the Northern Mariana Islands and Palau gained separate status.

The FSM attained independence in 1986 under a Compact of Free Association with the USA: financial aid is received from the USA in return for US control over defence affairs and the right to establish military bases. The agreement was renewed in 2004 and runs until 2023.

Economy
The Compact of Free Association with the USA provides the FSM with financial aid. Revenue is gained from the USA for fishing licences.

Many of the working population are engaged in subsistence farming and fishing. Industries include phosphates, construction, fish processing and aquaculture.

The tourist industry is constrained by the remoteness of the islands and lack of infrastructure. (2011)

Arts
Crafts reflect the traditional way of life in the Federated States of Micronesia: canoe building, woodcarving and weaving.

Music and dance is also an integral part of Micronesian culture. Not only is music and dance an art form but a means of telling stories and transmitting history.

Sport
Baseball is a popular sport in Micronesia (FSM). Volleyball is also played.

Water sports are swimming, kayaking, snorkelling, scuba diving and big game fishing.

Holidays
Easter, Christmas and New Year are celebrated. Other holidays include Independence Day - 3 November (1986 - from US-administered UN Trusteeship)

News
News from the Federated States of Micronesia is available from Newslink.

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