Republic, western Pacific Ocean.
It comprises the four island states of Yap, Chuuk (Truk), Pohnpei (Ponape), and Kosrae, all in the Caroline Islands . Area: 271 sq mi (701 sq km). Population (2002 est.): 109,000. Capital: Palikir , on the island of Pohnpei, the largest island. The people of the Federated States are Micronesian. Languages: Malayo-Polynesian languages, English. Religions: Christianity (predominant). Currency: U.S. dollar. The islands and atolls extend about 1,750 mi (2,800 km) east-west and about 600 mi (965 km) north-south. U.S. government grants constitute the main source of revenue; subsistence farming and fishing are the principal economic activities. The republic is in free association with the U.S., and it has one legislative house; its head of state and government is the president. The islands were probably settled by people from eastern Melanesia some 3,500 years ago. They were colonized by Spain in the 17th century and came under Japanese rule after World War I. They were captured by U.S. forces during World War II, and in 1947 they became part of the UN Trust Territory of the Pacific Islands, administered by the U.S. The islands became an internally self-governing federation in 1979. In 1982 the Federated States signed a compact of free association with the U.S., which is responsible for Micronesia's defense.