Palau’s president made a historic first State visit to New Zealand this week as a new Guam‑based security report warns that an accelerated U.S. military build‑up in the Micronesian island nation is bypassing environmental safeguards and local voices. The Micronesia Security Outlook 2025, produced by the Pacific Centre for Island Security, says long‑standing “guardrails” in the Compact of Free Association that are meant to protect Palau’s environment and sovereignty have been undermined by recent U.S. activities.
The Palau section of the report was authored by Jodean Remengesau, director of the Bureau of Agriculture in Palau’s Ministry of Agriculture, Fisheries and the Environment. Remengesau writes that while the Compact grants the United States exclusive use of Palauan land, waters and airspace for military purposes, it also requires that environmental standards and domestic permitting processes be observed. “The U.S military had missed and fell short of fulfilling its duties and responsibilities under the compact of the U.S with Palau,” he says in the report.
The paper details a high‑profile example on the state of Angaur, where the U.S. military cleared 271,807 square metres for the first site of a tactical mobile over‑the‑horizon radar system, reportedly without obtaining required environmental earthmoving permits or carrying out community consultations. The report describes how shredded tree debris from the clearing created a risk of invasive coconut rhinoceros beetle infestation and was subsequently dumped on residents’ yards in a hurried attempt to address the problem — a sequence Remengesau says the Compact’s environmental stipulations were designed to prevent.
Angaur Governor Steven Salii took legal action over the clearing in 2023, suing Palau’s central government, the Palau Environmental Quality Protection Board, the U.S. government and its contractors for alleged violations of Palauan environmental law and Compact obligations. The litigation remains one of the most visible flashpoints in a broader debate over how U.S. strategic requirements are being implemented on Palauan soil.
The report comes as Washington has increased its footprint in Palau under a renegotiated Compact that includes an US$890‑million assistance package over 20 years, which began on October 1, 2023. It also notes that a US$118‑million U.S. radar project in Palau is scheduled to be operational in 2026. Given that a substantial portion of Palau’s national budget derives from Compact funds and other foreign aid, the think tank warns the island’s role in U.S. and international security objectives is likely to expand — heightening concerns about sovereignty and environmental protection.
The authors say the geopolitical rivalry between the United States and China is the backdrop for recent activities in Palau, and they raise questions about transparency after an installation initially described as a single shoreline radar for mutual use was later revealed to involve separate systems for Palau and U.S. military purposes, the report says. That perceived shift, combined with alleged permitting lapses, fuels local dissatisfaction documented by the Pacific Centre for Island Security.
Palau’s historic diplomatic outreach to New Zealand underscores the country’s effort to balance growing strategic interest from external powers with diplomatic and environmental priorities at home. The new report is likely to sharpen scrutiny of how Compact commitments are implemented as the radar project approaches operation and legal challenges over environmental compliance continue.
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