Palau was part of the United Nations Trust Territory of the Pacific, administered by the United States, following World War II. In 1978 Palau began the process of independence and gained it in 1994. The United States recognized Palau at the same time that the trusteeship ended. The United States has an embassy in Koror.
On September 27, 1994, U.S. President William Clinton issued proclamation 6726, noting that as of that day the United States had fulfilled its obligations to Palau under the terms of the Trusteeship Agreement. Therefore, as of October 1, 1994, Palau would no longer be under U.S. trusteeship, and a Compact of Free Association agreed on between the two countries would go into force. This latter date marks U.S. recognition of Palau’s independence.
On December 6, 1996, U.S. Ambassador to the Philippines Thomas C. Hubbard was accredited to Palau; he remained resident at Manila.
In 2004, responsibility for Palau was no longer given to the U.S. Ambassador to the Philippines. The American Embassy in Koror was established on October 10, 2004, with Deborah L. Kingsland as Chargé d’Affaires.