# NATIONAL SECURITY STRATEGY

## of the Republic of Palau

##### June 2022


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**Belau Rekid**

_Belau loba klisiich er a kelulul,_

_El dimla ngarngii ra rechuodel mei_

_Meng mengeluolu er a chimol beluu,_

_El ngar cheungel a rirch lomke sang._

_Bo dole ketek a kerruul er a beluad,_

_Lolab a blakelreng ma duchelreng._

_Belau a chotil a klengar re kid,_

_Mebo dorurt a bedul msa klisichel._

_Bode kaiuereked chim lokiu a reng,_

_E dongedmokel ra dimla koted._

_Lomecheliu a rengedel ma klebkellel,_

_Lokiu a budech ma beltikelreng._

_Dios momekngeltengat ra Belumam,_

_El dimla dikesam ra rechuodel mei,_

_Beskemam a klisicham ma llemeltam,_

_Lorrurt a klungiolam el mo cherechar._


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##### The President’s Message

Today, we are blessed as citizens of the Republic of Palau to live in a small-island nation that continues to
enjoy great stability and progress through these unprecedented times and rapidly changing world. We are
encouraged by the strong efforts and commitment that we have poured into protecting our nation and
preserving our Palauan values, culture, and way of life that we have inherited from our forefathers.

Following this year’s theme, Oterkeklel a tekoi er a klekerngel ma sebecheklel a beluu ma rechad: Ensuring
_our Security and Safety, we must constitute a comprehensive strategy that advances our nation’s long-term_
goals and ensures the safety of all Palauan people.  This will in turn strengthen our national security
interests in all aspects of the government as we continue to cultivate stable and cooperative diplomatic
relations with our strong international allies, trading partners, and global economic institutions. Now, it is
our responsibility to prioritize our economic recovery through diversification and innovative approaches
that create new opportunities for growth and sustainability. We must protect our natural resources and
secure our exclusive economic zone from which our livelihoods depend. This demands strong partnership
and cooperation between Palau and our critical allies such as the United States of America, Japan, and
Australia as we work together to protect Palau’s borders and the assets that are distinctive and invaluable
to our island nation and our people.

As we protect our peace and security, it is crucial to realize the inevitable challenges of the developing
world, specifically in the cyberspace environment. Ensuring the cyber security and cyber defense, and
combating transnational crime, will require prioritization and the development of modern infrastructure to
deter and prevent cybercriminal activities from causing permanent harm to Palau’s global reputation. Our
combined efforts to enforce and eliminate these illegal activities will require cooperation with regional
partners for expertise, education, training, and technical assistance.

Finally, as our small island nation continues to develop and prosper, we must always look ahead with
steadfast determination and resolve to pursue “A Kot a Rechad er Belau.” I believe that we must take on
these responsibilities confidently to pursue our vision with the guidance of the priorities established in this
strategy. Together, we can build a Palau that is stronger and more secure today, and for the future
generation.

Sincerely,

Surangel S. Whipps, Jr.

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### TABLE OF CONTENTS

INTRODUCTION 5

ECONOMIC SECURITY 6

SECURE OUR EXCLUSIVE ECONOMIC ZONE 9

CYBER SECURITY 11

RESILIENCE TO NATURAL AND TECHNOLOGICAL DISASTERS 12

TRANSNATIONAL CRIME 14

NATIONAL INTELLIGENCE ACTIVITIES 16

CONCLUSION 19

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### INTRODUCTION

##### “Oterkeklel A Tekoi Er A Klekerngel Ma Sebecheklel a Beluu Ma Rechad:
 Ensuring our Security and Safety
 for the Republic of Palau.”

###### Our government’s fundamental responsibility is to preserve and protect Palau, the Palauan People, Palauan culture and our way of life. In today’s interconnected, competitive and complex world, doing so requires a security strategy that leverages our strategic importance to the world, recognizes our regional strengths, and is grounded in Palauan values.


Threats to Palau’s Economic Security is the top
concern. Following the downturn in national
gross domestic product and decline of the tourist
industry resulting from the COVID-19 pandemic,
we continue to explore ways to build back our
economy. We remain vigilant not to fall deeper
into the trappings of short-term gains with
negative long-term implications. Given Palau’s
current economic vulnerabilities, our number one
priority must be to care for the Palauan people.
Our government leaders must proceed with
caution when deciding on investment

opportunities or other activities. We will avoid
the allure of quickly available funding with no
long-term benefits. The desired financial strategy
is one that avoids increasing national debt,
optimizes the tax code, and provides solutions for
resolving Palau’s current economic dilemma.

Palau’s strategic importance as the island farthest
to the West in the second island chain between
the U.S. and Asia cannot be understated.
Cooperation with other island nations remains
paramount to our national security. We are the
link in the defensive chain farthest to the west
with a 200-mile **Exclusive Economic Zone**
(EEZ) stretching in each direction. Palau readily
serves as the first line of alert to other island
nations of intruders, illicit traffickers, illegal
fishing vessels and other bad actors who must
pass through our waters before reaching our
neighbors and points beyond. The constant
patrolling and surveillance of the EEZ deters a
variety of maritime threats before they get deeper

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into the region. Palau has developed a
comprehensive program, in concert with other
Micronesian nations, under the Protected Areas
Network Act for maintaining marine protected
areas in near-shore locations. The spillover effect
of this program has been extremely positive as
evidenced by similar initiatives in the

Commonwealth of the Northern Mariana Islands,
the Federated States of Micronesia, Guam and the
Marshall Islands. To sustain this level of
cooperation and maintenance of our large EEZ,
Palau requires improved intelligence capabilities,
resilience against global warming and climate
change, and conservation of our resources for
future generations.

The future of Hong Kong appeared bright during
its handover of sovereignty to China in 1997.
Hong Kong’s central role as a business hub had
been reinforced by its openness to the outside
world and its access to mainland China.
However, the restrictive measures and reputation
for health threats due to the COVID-19 pandemic
has removed those advantages from Hong Kong
and made it inhospitable for international
business. Like Singapore, Palau’s ability to
quickly and effectively physically isolate itself
from pandemic threats can serve as an
opportunity for continuity of international
commerce. Palau deserves more trade in order to
realize greater self-sufficiency and a stable
economy. Palau’s digital residency program
provides a safe and secure way to transact
business digitally from anywhere in the world.


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The program’s success depends on resilient and
effective Cyber Security. Sovereign control over
our borders and the excellent processes in place
by our Ministry of Health and Human Services
for COVID-mitigation protocols means easier
arrivals and departures approvals from Palau. We
must continue exploring investment opportunities
building stronger partnerships with our U.S.,
Australian, European, and other allies.

Palau absolutely values the long-standing
partnership we have enjoyed with the United
States. We are proud of our role in contributing to
U.S. national security and the defense of the U.S.
Homeland along with the rest of the Freely
Associated States (FAS). As we continue the
Compact of Free Association (CoFA) review
process, we know that a stronger Palauan
economy and security posture provides

exponential benefits for U.S national security in
terms of stability, ideology, physical presence,
access and responsiveness. Concurrently, the
intrinsic benefits of modernization will keep
Palauans in Palau by providing the same
opportunities as are found in Hawaii or Guam.

Palau has had the distinct pleasure of hosting a
number of recent joint and multinational military
training exercises in Palau. Presence is

deterrence. That presence has reaped many
benefits in terms of security cooperation training.
We continue to build **Capacity and Resiliency**
**against Natural and Technological Disasters**
and proficiency and experience among our
various law enforcement organizations to
**Counter** **Transnational** **Crime.** Local

businesses have enjoyed the residual benefit of
money spent in Palau’s restaurants, hotels and
service organizations. Palau will continue to reap
these economic and security benefits with more
frequent military exercises expected on the
horizon. Palau expects these to also drive
infrastructure improvements in **National**

**Intelligence Activities, and support military**
logistics requirements such as new runways,
expanded runways, port facilities, and roads that
advance the capability of the U.S. military to
move troops and equipment quickly and easily.

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Through strategic alliances, advancing Palauan
regional partnerships, and promoting Palauan
values and influence, we will secure and protect
our country, our cultural heritage and the Palauan
way of life to realize the vision of “A Kot A
Rechad Er Belau!” Palauan People, First! This
inaugural 2022 Palau National Security Strategy
is our roadmap for “Oterkeklel A Tekoi Er A
Klekerngel Ma Sebechekel a Beluu Ma Rechad:
Ensuring our Security and Safety for the Republic
of Palau.”

#### ECONOMIC SECURITY

###### We will always put first the prosperity and economic security of the Palauan people. Together we will rebuild our economic institutions through responsible and
 sustainable use of our natural resources, emerging technologies, and the global free market economy. 

Our international allies, trading partners and
global economic institutions have a strategic
stake in doing more to honor and enforce existing
agreements. In the wake of the COVID-19
Pandemic, and after closing our borders for more
than a year to ensure the safety of the Palauan
people, doubt has replaced confidence as our
overreliance on tourist dollars proved detrimental
to our economy. Over the past two decades, Palau
has come to rely too heavily on tourism and
foreign imports from countries that do not share
the same values as Palau. These countries
leveraged economic dominance to impugn
Palau’s sovereignty and independence while
seeking to exploit our abundant natural resources.
Since reopening Palau’s borders, the flow of
tourists has been nowhere near our pre-pandemic
numbers. A disproportionate area of our
Exclusive Economic Zone (EEZ) remains
constrained to tourism and recreational activities,
while Palau’s fishing and aquaculture industries
have continued to decline. The abandoned
hatcheries can be seen while moving about our


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waterways to and from the rock islands and dive
sites now devoid of tourists.

In the years leading up to the pandemic, the influx
of Chinese tourists provided Palauan businesses
with the required capital to invest and expand
Palau’s hospitality infrastructure. Despite a
reopened Palau, the Chinese government

continues to intentionally damage Palau’s
economy by restricting the flow of Chinese
tourists. The majority of hotel rooms remain
vacant. New restaurants built to cater to the
Chinese tourist remain shuttered. Buses and other
transportation supporting a once burgeoning
tourist industry remain idle. New initiatives like
the “Sterile Corridor” between Taiwan and Palau
have developed slowly due to a resurgence of
COVID 19 cases in both Taiwan and Palau. As
new COVID-19 variants emerge and the threat of
another global pandemic remains a reality for the
near future, it is clear that our economy cannot
depend primarily on tourism and tourist dollars to
recover and thrive. Concurrently, we must never
again allow foreign intrusion and harmful
influences to negatively impact our

independence, sovereignty, and way of life.

Palau’s strong financial situation before the
pandemic disqualified us from receiving any
grants to compensate for revenue loss while our
borders were closed. As such, the financial
assistance received in the form of loans will need
to be paid back. Compounding the issue is the
condition of our aging infrastructure and key
facilities. Our harbors, hospital, airport runways,
waterways, roads, power grid, and

telecommunications infrastructure are all in need
of repair and in some cases, complete
replacement.

Palau’s economic challenges require innovative
and diverse approaches. The current

administration was elected on a platform of
putting the people of Palau first – “A Kot A
Rechad Er Belau!” We must work closely with
allies who share our common values to rebuild
Palau’s economy, strengthen our financial

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institutions and build new instruments and
economic forums that put Palau on stable footing
in an increasingly challenging and complex
global economy.

##### Priority Actions 

**REBUILD ECONOMIC STRENGTH AND**
**CONFIDENCE: Economic recovery requires**
the reduction of debt through fiscal

responsibility, innovative approaches to restore
and revitalize existing Palauan industries, and
continuously seeking new opportunities for longterm sustainment and growth. The absence of
visitors due to COVID-19 has served as a costly
reminder of how important tourism is to Palau.
But never forget how important Palau is to the
rest of the world as a model for marine
preservation and one of the seven underwater
wonders. In time, our valued visitors and guests
will return. It is critical we continue to balance
rebuilding our tourist industry with ensuring the
safety of the people of Palau and protection of the
natural environment. Government investment in
strengthening entrepreneurialism in local food
production, agriculture and aquaculture in
collaboration with technical and financial
partnerships is equally critical. At the same time,
we will leverage new technologies such as fintech
and digital residency to build and preserve a fair
and reciprocal international economic system for
Palau that is stronger than ever before.

**RESTORE TRUST AND CONFIDENCE IN**
**OUR HEALTHCARE SYSTEM: The Ministry**
of Health and Human Services will continue to
build on its excellent management of the COVID19 crisis. The exceptional manner in which we
handled the initial reopening of our borders, the
careful tracking and testing of new arrivals, and
the successful containment of the Omicron
variant outbreak are a testament to the talent,
tenacity and resiliency of Palau’s healthcare
professionals. Our Hospital Relocation

Committee is undertaking reviews of sites for our
national hospital facilities, including evaluation
to move the hospital to the same island as the


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international airport and possible future seaports.
In concert with the move are the continued
initiatives to improve and modernize our staff,
equipment and facilities while also enhancing the
quality and frequency of exchange programs and
sister hospital programs. The reduction of
required referrals and the associated costs to
Palauan taxpayers for routine treatments and
basic surgical procedures requires a shift from
current outdated medical practices to new and
modern medicine.

**ENHANCE OUR MARITIME SECURITY**
**TOOLS AND EXPERTISE:** Ensuring that
Palau can detect, deter and defeat encroachments
and violations of our EEZ and national
sovereignty requires investing in both new
systems and improving our existing systems to
maximize returns on prior investments. We will
constantly reevaluate the strengths and

weaknesses of our maritime security capabilities
and work with our allies and partners to continue
building partner capacity and a joint and
multinational method of securing our EEZ,
waterways, seaports and harbors. We will
continue to cultivate current investments in
national security while implementing new
approaches to acquisition that ensure the best
value for Palau.

**PROTECT** **COMMERCIAL** **ACTIVITY,**

**CONSUMERS AND PRIVACY: To enjoy the**
benefits of global connectivity requires effective
governance, laws, enforcement, safe

infrastructure and public awareness of safe online
practices. Combating Cybercrime begins with
laws that are up to date and address criminal,
national security, commercial and personal
interests. We will deter and disrupt cyber
criminals and malicious cyber actors by applying
modern standards that contribute to consistency
across the Pacific. We will continuously update
our laws to protect our Palau from the
everchanging landscape of cybercrimes. These
changes will appropriately account for Palau’s
unique society, culture, and institutions.

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**DEFEAT TRANSNATIONAL CRIMINAL**
**ORGANIZATIONS: Time and territory allow**
the expansion of criminal supply chains critical to
conducting illegal activities unchallenged or
undetected. We will continue to support our law
enforcement allies and partners in degrading and
defeating transnational criminal organizations
and their subsidiary network by denying the
criminal organizations safe haven in Palau. We
will continue to enable and participate in direct
action campaigns whenever possible to combat
cybercrime, political subversion, money

laundering, drug trafficking, human smuggling,
labor trafficking and other heinous and illicit
criminal activity.

**COMBAT** **ILLEGAL** **DRUGS** **AND**

**TRAFFICKING IN PERSONS: We will invest**
in national strategic intelligence sharing

capabilities and improve our ability to work with
other international organizations. Our National
Police, State Rangers, Customs and Border
Protection agents are the keys to successfully
detecting, deterring and defeating illicit

networks. We will invest in training and
education programs to improve our partnerships
with the United States Coast Guard, the United
States Department of Justice, and the Australian
Federal Police. The effectiveness of our law
enforcement professionals requires modern
equipment, techniques, tactics and procedures.
We must update human smuggling and labor
trafficking laws and criminal codes to reflect
current activities.

**ENHANCE OUR BORDER DETECTION**
**CAPABILITIES: Palau’s borders span the outer**
limits of our EEZ, our cyberspace perimeter, and
our customs and immigration facilities. Our
border agents, rangers and other law enforcement
professionals are the first line of defense against
illicit drug trafficking, labor trafficking,

transnational criminal activity, and cybercrime.
We will preserve our reputation as a secure
environment for legitimate business partners and
investors, providing them the safe operating


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space in which to participate in Palau’s economic
recovery and prosperity.

**BUILD ECONOMIC RELATIONSHIPS ON**
**MUTUAL TRUST THAT BENEFIT THE**
**PEOPLE OF PALAU: Our maritime transport**
sector (MTS) consists of several elements,
including domestic and international ships,
seafarers, port services, ship representation
services, freight-forwarders, regulation of

shipping, contribution of other ministries or
agencies to assist navigation or maritime
transport, enactment and enforcement of laws. In
early 2020 until now, the economic sector has
suffered from a major economic shock brought
about by the Covid-19 pandemic. The impact of
the external shock brought the realization that
government services in the maritime sector need
to be delivered by means of user-pays principle,
innovation and efficient use of resources in order
to reduce negative impacts of reduced

government revenue on services.

**MINIMIZE DEBT AND OTHER BURDENS**
**ASSOCIATED** **WITH** **DEVELOPMENT:**

Both the Republic of Palau and the United States
of America must honor the provisions of the
Compact of Free Association and, where
appropriate, continuously renegotiate as

necessary to ensure fairness, compliance,
reciprocity and faithful adherence. Palau will
explore innovative financial strategies and
mechanisms to minimize debt for development.
We will utilize the generous assistance of our
partners and allies when possible and seek
opportunities for private investment or publicprivate partnerships to meet the growing demand
for new and better infrastructure services.

#### SECURE OUR EXCLUSIVE
 ECONOMIC ZONE

Since January 2020, Palau’s Division of
Maritime Security and Fish and Wildlife

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Protection (DMSFWP) in collaboration with
local, state, national, and partner nations, and
nongovernmental and inter-governmental

organizations, have conducted continuous

monitoring and control operations to deter,
detect, investigate, and interdict maritime
violations of the Palau National Marine
Sanctuary in order to protect Palauan natural
resources from illegal fishing, criminal acts, or
other activities detrimental to Palau’s natural
environment our international waters.

The recent encroachments of Illegal, Unreported
and Unregulated (IUU) fishing vessels and
Chinese undersea terrain and minerals surveying
platforms underscore the challenges of policing
and patrolling our 1.6 million square-kilometer
EEZ. Our limited and small support economy
means heavy reliance on international

cooperation and resources from the U.S. Coast
Guard, U.S. Navy, Japan Coast Guard, and the
Australian Navy. Equally important is the need to
significantly reduce the costs of housing and
feeding apprehended trespassers and poachers.
These continuous attempts to usurp Palauan
national security and violate its sovereignty
remain a primary concern.

Unsustainable fisheries and aquaculture due to
poaching, inadequate supply of seed clams, and
uncertainty of the industry have negatively
impacted the viability of both industries to
contribute to the economy. The symbiotic
relationship between Palauans and the ocean is
deeply rooted in the sense of responsibility taught
from childhood and an understanding that the sea
is the source of sustainment and must be cared
for. Palau’s national identity is strategically
linked to an increasingly vulnerable ocean from
which we derive the majority of our food and rely
on as our source of income through fish sales and
tourism. Traditional “Bul” involving the Council
of Chiefs placing reef areas off limits to fishing
during known fish feeding and spawning periods
is still as important for sustainability. The
practice remains an important part of a grand
resource management strategy involving


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scientific techniques to identify ecosystems at
risk, protected area network law, and Palau’s
commitments under the Convention on

Biological Diversity.

Recovery of our economic base is contingent on
our ability to build resilience into our
infrastructure. We must prepare for the worst in
order to mitigate the negative impacts and effects
of natural disasters. All communities share in the
responsibility to provide safety and security to
our citizens while protecting our economic
means, our culture and our traditional assets. The
notable increases in frequency and severity of
natural disasters are a result of accelerated
climate change conditions. The subsequent shift
to a more proactive approach to disaster risk
reduction must continue in order to build the
resilience necessary to survive and recover from
extreme geological, hydrological, meteorological
and technological events.

##### Priority Actions

**REVITALIZE** **AQUACULTURE** **AND**

**DOMESTIC FISHERIES: Palau’s National**
Marine Sanctuary remains important to both
ocean conservation efforts and our economic
strategy. In addition to feeding both citizens and
visitors, Palau’s domestic fisheries provide the
added benefit of relief for near reef fisheries. We
will explore and forge strategic partnerships for
developing our local fishing fleet, our centralized
fish auction market, build processing and wharf
facilities and increase our exports. The taxes and
fees generated by these actions will provide
revenues directly to the states with tangible
benefits for the Palauan people.

**ENSURE THE SAFETY OF FOOD FISH**
**STOCKS: Ocean acidification, marine pollution,**
plastics, sediment, and rising sea levels from
global warming not only negatively affect our
coral reefs but the fish and marine resources that
live and feed on those same reefs. The risk of
contamination exists and should be monitored
throughout the EEZ. Education on these dangers

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to food fish stocks are important. We must
implement testing to ensure the safe consumption
of food fish stocks critical to Palau’s household
and national food security.

**ENSURE THE HIGHEST QUALITY CIVIL**
**SEARCH AND RESCUE (SAR) NETWORK:**
The return of tourists and expansion of our
domestic fishing fleet and aquaculture industry
requires the optimized delivery of efficient and
effective SAR services. We will work with state
and local governments, civil and volunteer
organizations and private enterprises to develop
and modernize the interoperability and reliability
of alert and identification platforms and
emergency communications systems.

**INCREASE OUR CAPACITY THROUGH**
**STRATEGIC** **PARTNERSHIPS:** Working

through a robust and increasingly modernized
Joint Operations Center (JOC), we will continue
to strengthen our relationships and cooperation
with the U.S. Coast Guard. U.S. Navy,
INDOPACOM, Australia, the Nippon

Foundation of Japan, Taiwan, and other critical
allies. These existing alliances and new ones to
be formed are the keys to deterrence. All
government agencies, non-government

organizations, private sector, state governments
and local communicates must work together to
ensure our vital maritime assets are protected and
our borders are secure.

**MODERNIZE OUR DETECTION AND**
**DETERRENCE** **CAPABILITIES:** Palau’s

recent success from increased satellite and air
surveillance capability through several programs
with USINDOPACOM highlights the importance
of modern technology for border protection. We
will continue combating transnational crime, and
detecting drugs and human traffickers destined
for Palau or passing through Palau’s EEZ en route
to the United States from Asia. We will
modernize our Joint Operations Center, coastal
surveillance systems and add additional aerial
surveillance assets such as satellites and
unmanned aerial surveillance drones.


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**STRENGTHEN** **ECONOMIC** **GROWTH**

**THROUGH A SAFE, EFFICIENT, AND**
**SUSTAINABLE MARITIME TRANSPORT**
**SECTOR (MTS): Palau quickly addresses**
priority issues affecting the current MTS of Palau
with a view to make improvements. We will
formulate the necessary plans, strategies, and
actions required to ensure that all components of
the MTS in Palau are safe, secure, efficient,
environmentally-friendly, and contribute to the
development of the nation.

**PROTECT OUR VALUABLE MARINE**
**ENVIRONMENT: Palau continues to meet its**
international obligations by promoting the safety
and security of shipping, the health and welfare
of seafarers, and the protection of the marine
environment. We will ensure that the regulatory
framework for Palau’s MTS is up-to-date and
capable of effectively implementing our

international maritime obligations. The MTS will
comprehensively cover areas of need; and set the
process for implementing International Maritime
Organization mandatory instruments to which
Palau is a party.

#### CYBER SECURITY

###### Palau’s security strategy is critically
 dependent on our response to the numerous opportunities and challenges posed by the cyberspace environment in which the international community operates. 

Cyberspace offers state and non-state actors the
ability to wage campaigns against Palau’s
national security, economic and political interests
remotely and often without attribution. The
absence of a viable and effective cyber defensive
perimeter allows cyber attackers to disrupt
operations or damage critical infrastructure.
Without effective security, Palau’s critical
infrastructure is vulnerable to cyber, physical,
and electromagnetic attacks that can result in
significant disruptions to maritime security

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operations, our power grid, communications
systems, and banking and financial operations.

##### Priority Actions

**ENSURE CYBER SECURITY AND CYBER**
**DEFENSE FOR PALAUANS: We will deny**
cyber criminals and cyber attackers the ability to
harm Palauans through comprehensive cyber
awareness campaigns and educational efforts. We
will reinforce public and private efforts to halt
illicit online activities such as identity theft,
malware, gambling, child pornography, phishing
attacks, social engineering and credit card fraud.
The safe and responsible use of social media and
other digital platforms ensure the healthy
exchange of information and ideas while
promoting Palau’s values to the world.

**ENSURE CYBER SECURITY AND CYBER**
**DEFENSE FOR DIGITAL RESIDENTS: The**
success of Palau’s growing digital residency and
cryptocurrency exchange initiatives are totally
dependent on our ability to develop and maintain
a positive cyberspace reputation. These types of
systems are ripe for exploitation and could cause
permanent harm to Palau's reputation if breached
or compromised. We will identify and prioritize
risks to build and develop the modern
infrastructure required for defensible government
networks.

**EXPAND COLLABORATION WITH OUR**
**INTERNATIONAL** **PARTNERS** **AND**

**ALLIES:** The security of the Palau National
Marine Sanctuary is dependent on cyberspace
and the electromagnetic spectrum for electronic
detection of maritime threats. Processing and
analyzing information across a variety of
communications systems and platforms requires
data reliability, availability and integrity. Coastal
Surveillance Systems, Joint Operations Center
communications networks and other systems are
subject to the negative effects of power
disruption, signal equipment jamming, man-inthe-middle attacks, and more. In addition to
improving our protective cybersecurity posture,


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we will explore operational communications
security options such as radio signal encryption
and commercial solutions for classified

technology.

**DETER AND DISRUPT CYBERCRIMINAL**
**ACTIVITIES: Securing critical infrastructure**
against exploitation or attack by cyber criminals
requires competent authority, trained law
enforcement, timely information, and modern
capabilities. We will work with our allies and
partners to expand our cybersecurity awareness
and build a stronger and more resilient
infrastructure capable of detecting and preventing
fraud, identity theft, money laundering, and more.

**IMPROVE AND MAINTAIN A STRONG**
**CYBER PERIMETER: Palau’s cyberspace**
borders must be protected with the same
vigilance as our physical borders. Security and
resiliency based on layered defenses are the best
protection against ransomware, malware,

spyware, invasions of privacy and cybercrime.
We will prioritize our protective efforts based on
where cyberattacks could have the most
catastrophic consequences to our national
security. Continued network modernization will
defeat attempts to breach Palauan networks.

**PROTECT** **LEGITIMATE** **FOREIGN**

**INVESTMENT:** Palau’s Digital Residency
Program and the plans for other fintech initiatives
welcomes business partnerships in a safe and
secure cyber environment. We will continue to
explore ways to improve Palau’s legal and
regulatory environment to encourage foreign
investment that increases domestic employment,
expands the economy, and raises revenue and
capital through taxation. We will actively counter
illegal or unethical foreign investment that
undermines both economic and national security.

**PROTECT PALAUAN SOCIETY FROM**
**CYBERCRIME: As an early adopter of The**
Budapest Convention, Palau has well-established
its stance in the international community against
crimes committed via the Internet and other

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computer networks. We will continue to pursue a
common criminal policy aimed at the protection
of society against cybercrime through appropriate
legislation and international cooperation. We
must build capacity by training and educating law
enforcement, prosecutors, and the judiciary to
successfully prosecute cybercrime.

**PROTECT** **PUBLIC** **OFFICIALS** **AND**

**DIPLOMATS FROM CYBER ATTACKS**
**AND EXPLOITATION: Cyberspace provides a**
medium by which illegal access, illegal
interception, data interference, computer-related
forgery and fraud, and privacy violations can
occur. Palauan citizens with special status such as
public officials, as well as diplomats and other
foreign dignitaries can be especially targeted.
However, social media impersonations, theft of
privacy for extortion purposes, or compromised
travel schedules to aid in assassination planning
present dire risks. We will increase our ability to
safeguard the confidentiality, integrity, and
availability of sensitive data by improving the
means by which we store, share and send data
both internally and with our allies and partners.

#### RESILIENCE TO NATURAL
 AND TECHNOLOGICAL
 DISASTERS

###### With the incredible support of our diplomatic friends, we have successfully weathered the storm of the COVID-19 pandemic. These alliances continue to provide valuable healthcare, education, and technology
 services, protection from aggressors, and expertise combating climate change. 

 The PNMS has inspired conservation leaders around the world, while setting the standard for which all ocean states should aspire. We have established a global reputation through responsible international partnerships, bold environmental leadership, and diligent


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###### marketing. As we continue to leverage our world-class reputation into a world-class economy, we must make the necessary land value-added investments that will build much needed resilience into Palau’s harbors, airports, roads and waterways. 

 We continue to experiment with public- private partnerships prioritized towards renewable energy commitments, including a solar-power generating plant that will satisfy 20% of our national energy needs. This is a direct result of our ongoing efforts to leverage our long-term bilateral relationships into mutually beneficial infrastructure
 improvements. 

 Security against natural and technological disasters will ensure that during times of extreme need and hardship, the basic needs of the Palauan people – water, electricity, healthcare, and safety - can still be provided by their national and state governments. When the next challenge arises, Palau must be ready.

##### Priority Actions

**ENSURE OUR ABILITY TO QUICKLY**
**RECOVER KEY INFRASTRUCTURE:** The
actions taken immediately before and after a
natural or technological disaster are limited only
by the amount of planning and viability of
resources and assets available following a
catastrophe. Survivability and recovery of key
economic assets depend on the resilience of
facilities built in ahead of time. We will rebuild,
harden, relocate, and modernize our national
facilities to ensure the highest levels of resilience
and dependability, possible. We must be able to
organize and deploy SAR, evacuate disaster
victims requiring higher-level medical care or
evacuate citizens of other countries desiring to
return home, distribute humanitarian relief, and
resume commercial activities, quickly to ensure
goods and services flow to those in need.

13


**ENSURE A SAFE AND SECURE EEZ:**
Search and Rescue in response to natural
disasters, boating mishaps, and other dangerous
situations and events are critical. We will ensure
a safe and secure EEZ for our fishing, aquaculture
and tourist industries, Palauan recreational
activities, and international shipping. The
expansion of the EEZ for domestic and
commercial fishing fleets and revival of the
aquaculture industry requires a reassessment of
current national disaster relief and recovery
frameworks which were planned around a limited
use of the Palau National Marine Sanctuary.

**IMPROVE BORDER PROTECTION AND**
**PATROLLING OPERATIONS:** In late 2021,
the Chinese Research Vessel “Da Yang Hao”
illegally entered Palau’s EEZ north of Kayangel
Island. When challenged, the Chinese crew of the
marine resource survey ship claimed to be
avoiding a major storm in the area. Typhoons and
other weather events provide cover for

unauthorized vessels to encroach in our territory.
We will ensure all border protection measures
remain alert and operational during events. Our
law enforcement professionals must move
quickly to resume patrolling and scanning of the
EEZ any vessels that may have infiltrated under
the cover of a natural or technological event.

**UPDATE OUR DISASTER RECOVERY**
**FRAMEWORKS: Resumption of international**
commerce following natural disasters ensures
fast recovery of the economy. Palau’s National
Emergency Management Office will revisit
current frameworks that were developed before
the COVID-19 pandemic to ensure they meet our
current needs as we shift to a more diversified
economic portfolio. From a disaster recovery and
humanitarian assistance stance, relocating,

hardening, expanding, and establishing alternate
locations for medical facilities, seaports, harbors
and airports ensures that aid is received and
distributed quickly to those in need.

**STRENGTHEN OUR KEY ALLIANCES**
**AND** **CONTRIBUTE** **TO** **REGIONAL**


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**EFFORTS: Palau relies heavily on support and**
aid from more capable partners such as the U.S.,
Australia, Japan, and Taiwan in the form of
multinational operations, equipment (patrol boats
and aircraft), training, and education. We will
continue to do our part as a capable and reliable
member of different regional and international
treaties and agreements. Alliances and

partnerships ensure a holistic cooperative
approach to aiding those negatively affected by
natural disasters.

**ENSURE CONTINUITY OF OPERATIONS:**
The resiliency and availability of government
facilities and networks are important to ensure
continuity of public service operations during a
natural or technological disaster. We will conduct
risk assessments and create mitigation plans to
ensure public officials and diplomats are able to
continue and resume their duties and

responsibilities. The hours and days immediately
following a disaster are crucial to public servants
and diplomats as they coordinate critical
humanitarian aid and disaster relief.

**SUPPORT CONVENTIONAL WEAPONS**
**DESTRUCTION PROGRAMS: U.S. support**
to Palau’s unexploded ordnance (UXO) clearance
work has been provided by the Office of
Weapons Removal and Abatement in the U.S.
State Department’s Bureau of Political-Military
Affairs (PM/WRA). We will continue to conduct
survey and clearance operations on the main
islands and rock islands via the PM/WRA funded
team as new information becomes available. The
delivery of Conventional Weapons Destruction
(CWD) programs and services in Palau is a joint
engagement between US Department of State and
US Department of Defense aimed at removing
UXOs from Palau’s former battlefields.

#### TRANSNATIONAL CRIME

A primary contributor to all facets of

transnational crime in Palau are organized
criminal organizations who see Palau as either a

14


transit or final destination for drugs, human
trafficking or other crimes. Organized criminal
activity has had detrimental impacts on both the
environment and the Palauan people’s livelihood.
The organized-crime landscape in Palau is
limited but growing. Eastern and southeastern
Asian criminal networks in concert with domestic
criminal networks have developed networks for
which a majority of the illicit activity is
conducted.

In 2018, Palau saw high quality

methamphetamine or “Ice” being imported from
the US mainland (Oregon and California),
Philippines, Tanzania, and Guam. The method of
transport varied widely. The drugs were primarily
smuggled by airline passengers in their carry-on
or checked baggage, and body cavities. Drugs
were also transported in air and sea cargo
containers, remittance companies’ packages and
parcels, and U.S. Post Office packages and
parcels. Heroin and cocaine supplies from Asia
are also an imminent concern and are at a high
threat level.

Human Trafficking continues to be a challenge.
The victims come from primarily economically
disadvantaged areas of Asian countries such as
China, Nepal, Thailand, Philippines, and

Bangladesh. Palau strives to keep pace with the
increase in illicit activity by increasing

investigations and other efforts.

Other transnational crimes on the rise are
financial in nature. These include money
laundering, credit card fraud, ATM machine
scamming, cybercrime such as illegal online
gambling, and child pornography. Our digital
residency program and crypto exchange

initiatives have vulnerabilities inherent in
cryptocurrency transaction processes. Cyber
criminals have had recent successes defeating the
security features of blockchain technology. At
present, there is no legal framework in place to
monitor and regulate virtual assets, virtual
currency service providers, or daily cyber
activities.


-----

##### Priority Actions 

**ENFORCE FINANCIAL CRIMES LAWS:**
Our strategy for economic diversification
requires a diversified approach to addressing
threats to Palau’s economic recovery. We will
continuously assess laws and legal frameworks to
monitor and regulate virtual assets, virtual
currency service providers and monitor cyber
activities. Illegal online gambling, money
laundering operations, ATM fraud and credit card
scams damage Palau’s reputation and detract
from legitimate international investments and
business operations.

**ELIMINATE THE METHAMPHETAMINE**
**EPIDEMIC:** Due to our population size, drug
markets in Palau are fairly limited but continue to
operate counter to Palauan laws, culture and
values. We will increase efforts to detect and
prevent the entry of methamphetamines and other
illegal drugs into Palau. The damaging effects of
methamphetamines use is amplified by the
visibly obvious traits of physical and mental
degradation. The negative health effects become
a drain on our healthcare system.

Methamphetamine use is a threat to our national
and economic security with tremendous negative
socio-economic impacts.

**INCREASE MARITIME PATROLLING: We**
will continue to strengthen our cooperation with
the U.S. Coast Guard. U.S. Navy,

INDOPACOM, Australia and the Nippon
Foundation of Japan and other critical law
enforcement allies. We will continue to increase
our presence at our borders, throughout the EEZ
and in our seaports and harbors. Our effective
physical and technological detection measures
will deny criminal organizations the use of the
Palau National Marine Sanctuary as a safe haven
for illicit activities.

**ENFORCE CYBERCRIME LEGISLATION:**
Banking and remittance services in Palau may be
vulnerable to exploitation by cyber criminals,

15


largely due to the lack of cybercrime laws or
experience to regulate and enforce existing
financial crimes legislation. We will develop
legal framework such as financial transaction
monitoring and asset seizure. We will continue to
augment the human, technical and financial
resources within Palau’s Financial Institutions
Commission, Financial Intelligence Unit, and
work collaboratively with international partners
to investigate cybercrime.

**DETER CRIME THROUGH REGIONAL**
**PARTNERSHIPS: Palau is a member of a**
variety of transnational law enforcement

organizations and networks that encourage
cooperation, pooling resources and sharing
intelligence. We will use these resources to train
law enforcement, prosecutors, and the judiciary.
We must develop these relationships and leverage
the combined talents and resources of the region
to deny organized criminal organizations a safe
haven from which to conduct illegal activities.

**ESTABLISH A NATIONAL CRIME LAB:**
Palau’s Narcotics Enforcement Agency is wellintegrated with the U.S. Coast Guard, FBI,
Australian Federal Police and other law
enforcement services across the region. Precious
time and taxpayer dollars are spent each year
transporting evidence to Guam and Australia for
forensic analysis.

An additional cost is incurred bringing those
analysts to Palau to testify at trial. We will
establish a Palau National Crime Laboratory.
Locally employed scientists will be able to
analyze evidence collected from crime scenes and
apply the latest scientific methodologies and
web-based databases to streamline their

processes.

**MODERNIZE OUR BORDER SECURITY**
**TECHNOLOGY: Palau’s recent success from**
increased satellite and air surveillance capability
through several programs with USINDOPACOM
highlights the importance of modern security
technology for monitoring our borders. We will


-----

continue to modernize our Joint Operations
Center, coastal surveillance systems and add
additional aerial surveillance assets such as
satellites and unmanned aerial surveillance
drones. The proper use of advanced technology
can effectively detect and deter transnational
criminals and drugs and human traffickers either
destined for Palau or passing through Palau’s
EEZ en route to the United States from Asia.

**BECOME A HUB FOR INTERNATIONAL**
**COMMERCE:** Palau is geographically located
in the middle of international shipping lanes
which double as the primary illicit trafficking
lanes of transnational criminal organizations.
Shipping containers transporting legitimate
goods and services are also used to smuggle
illegal drugs, counterfeit items, and currency
between Asia and other parts of the world. We
will increase efforts to protect the integrity of
international commerce by deterring criminals
from using Palau as a hub for illicit trafficking.
Through cooperation with our law enforcement
partners, we will continue developing new
technology and methodologies to screen, track,
seize and search suspected containers.

**IMPROVE OUR LAW ENFORCEMENT**
**CAPACITY: Palau fully endorses and supports**
the UN Convention against Transnational
Organized Crime. We will continue our hard
stance against transnational organized crime to
include mutual legal assistance and law
enforcement cooperation, promotion of

education, training and technical assistance, and
frameworks for extradition.

#### NATIONAL INTELLIGENCE
 ACTIVITIES

###### To be effective, intelligence processes must be responsive to the needs of Palau’s decision makers. It is a meticulous process of constantly gathering and analyzing vast amounts of data and compiling the

16


###### information into comprehensive reports containing actionable intelligence. 

When performed professionally and collectively,
the intelligence process facilitates evidencebased decision making and allows Palau’s leaders
and law enforcement personnel the ability to
determine overall strategic direction for planned
engagements or refining ongoing operations.
Effective feedback loops from multiple reliable
sources continuously inform the on-going
intelligence evolution.

Given the wide variety and nature of threats
facing Palau, modernization of our strategic
intelligence gathering and analysis capabilities is
badly needed. Currently, the Joint Operations
Center (JOC) requires additional tools and
staffing to reach full operational capability on par
with peer or near-peer regional partners. The lack
of qualified and capable analysts prevents the
JOC from realizing the full potential of existing
intelligence, surveillance, and reconnaissance
assets.

Given our geographic and geo-political position
as part of a strategically important second island
chain, our approach to intelligence operations
must adopt an integrated perspective and
incorporate as much validated and vetted opensource data and information as possible.
Intelligence can be gathered in Palau first and
passed quickly to our partners and allies. Palau’s
continued cooperation with regional

organizations and programs such as the Pacific
Fusion Centre (PFC) is paramount to Palau’s
security.

A safe, secure and defensible Palau requires
accurate, reliable and defensible strategic
assessments based on the best information
available, analyzed and interpreted by subject
matter experts. Such capability will advance
Palau’s ability to anticipate and quickly respond
to threats and illegal activity, while strengthening
its alliances and partnerships in the region.


-----

##### Priority Actions

**IDENTIFY ECONOMIC THREATS: A key**
aspect of Palau’s diversified approach to
economic recovery is our growing Digital
Residency Program and future fintech

opportunities. We will protect these programs
from the wide variety of cyber threats and cyber
criminals seeking to disrupt our operations in
cyberspace and damage our reputation as a viable
economic hub. Cyber intelligence for decision
makers is vital to ensuring a safe e-commerce
environment.

**BUILD ON OUR SUCCESSFUL COVID-19**
**PROCESSES:** COVID-19 has strained our
healthcare system and part of the reinvestment
and revitalization efforts must be to capture the
lessons learned from the successes that brought
us through the pandemic. We will sustain and
build on the healthcare intelligence gathering,
analysis, and reporting processes employed by
the Ministry of Health and Human Services. The
standard operating procedures for tracking
COVID-19 cases, numbers of individuals
infected, numbers of individuals recovered, etc.
can be applied to other Intelligence processes.

**ENHANCE OUR MARITIME DOMAIN**
**AWARENESS:** JOC serves a critical role in the
DMLE’s ability to anticipate, detect, deter and
interdict threats to the Palau National Marine
Sanctuary. We will provide the JOC with the
technology, analysts, and the training and
education necessary to improve information
sharing with our allies and partner organizations
such as the Pacific Fusion Centre.

**IMPROVE OUR CYBER INTELLIGENCE**
**CAPABILITIES:** The most technologically
advanced cyber security and cyber defense
networks comprising sensors, endpoint security
software, intrusion protection systems, firewalls,
security incident event management tools are
utterly ineffective without trained and

experienced engineers and analysts processing
the data. We will establish a Network Operations

17


and Security Center and Computer Incident
Response Team as part of the JOC. We will
collect and analyze the vast amount of raw
intelligence gathered by our sensors for analysis.
Our leaders will be better informed and capable
of protecting our networks and our economy from
security breaches, attacks and sabotage of
industrial control systems, economic espionage,
and the theft of sensitive information and
intellectual property.

**PARTNER WITH INTERNATIONAL AND**
**REGIONAL ORGANIZATIONS:** Combating
transnational crime requires a transnational
intelligence network capable of collecting and
analyzing vast amounts of data into

comprehensive and actionable reports. We must
continue working closely with the PFC for
strategic integrated security analysis and

intelligence assessments to facilitate strategic
decision making and consideration for regional
stakeholders. Whenever feasible, we will
leverage the robust security intelligence

frameworks, analysis procedures, standards and
tools of the PFC while maintaining national
sovereignty, national policy and operational
decision-making prerogatives.

**DETER, DETECT AND DISRUPT ILLICIT**
**TRAFFICKING AT THE BORDER:** Finding
and defeating trafficking networks at our borders
and within our territories requires enhanced
efforts, techniques and technologies. We will
bolster detection efforts and better integrate
intelligence and law enforcement. We will ensure
our frontline defenders have the right information
and actionable intelligence to investigate and
respond to illicit trafficking threats.

**ANTICIPATE AND COUNTER THREATS**
**TO OUR ECONOMY: Tracking key economic**
indicators allows decision makers to better
understand relevant industries and anticipate and
react to different events that will impact
international commerce. We will incorporate
economic intelligence gathering to analyze
political and economic developments, forecast


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economic trends, and understand countryspecific regulations and business practices. Open
Source intelligence (OSINT) gathering, analysis,
and reporting is vital to understanding possible
impacts on maritime trade, shipping activity,
domestic fishing fleet, and threats to our economy
such as IUU fishing, illegal geological surveying,
and economic espionage.

**ADD VALUE TO THE INTELLIGENCE**
**COMMUNITY: We will continue to work with**
partners to improve our information sharing
capabilities and qualifications in accordance with
existing treaties, the Compact of Free Association
with the U.S. and international laws and domestic
laws. Our ability to secure Palau against human
trafficking, transnational crime, and other illicit
activities is dependent on our ability to add value
to the current intelligence frameworks and
processes.

**PROTECT** **PUBLIC** **OFFICIALS** **AND**

**DIPLOMATS:** Safeguarding public officials
and diplomats from a wide variety of threats to
their well-being and the safety of their families
requires as much intelligence regarding potential,
possible, and probable dangers. We will develop
the capacity necessary to provide intelligence
services such as OSINT reports, country briefs
for travel security, and recommended force
protection measures at home and abroad.

18


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### CONCLUSION

We must continue building a safe, secure and prosperous Palau for those who live here now, for future
generations, and for the Palauan people living abroad who we want to return. An economically secure
Palau will build opportunities for our young people currently working or attending universities abroad
and clear paths for advancement and prosperity for those already in the workforce here at home. A secure
Palau ensures we continue to attract responsible and legitimate investors, allies and partners. The resulting
strong economy will ensure that the Palauan Dream delivers the highest levels of healthcare, education,
and opportunities found anywhere in the world.

The tasks ahead of us to improve economic security, protect our natural resources, enhance our
cybersecurity, police our borders, build national resiliency, fight transnational crime and increase our
intelligence capabilities are the next steps towards reaping the benefits and profits of the hard work and
progress already made. They are necessary steps for our current path towards mastering our current
environment and situation in the wake of the pandemic.

Together we can create a stronger, more secure, and more efficient government and a stronger and more
sustainable economy, for all Palauans.

A Kot a Rechad er Belau!


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