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Introduction: Guam was ceded to the US by Spain in 1898. Captured by the Japanese in 1941, it was retaken by the US three years later. The military installation on the island is one of the most strategically important US bases in the...

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Economic Overview: Guam is one of the more prosperous Pacific Islands, with a per capita GDP in the order of US$20 000. The US armed forces own one-third of the land in Guam and provide about 60 per cent of its income. A US-Japan agreement provides for the transfer of 8000 marines and an estimated 9000 dependents from US military bases in Okinawa to Guam. The US plans to significantly expand other defence capabilities on Guam, at an estimated cost of over US$13 billion (jointly funded by the Governments of US and Japan). The second most important source of income is tourism, primarily from Japan, South Korea and Taiwan. Guam’s fisheries and services sectors ...

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