History of the Marshall Islands several in Micronesia. On September 29, 1914, Japanese troops occupied the Enewetak Atoll, and on September 30, 1914, the Jaluit Atoll, the administrative centre of the Marshall Islands. After the war, on June 28, 1919, Germany signed (under protest) the Treaty of Versailles. It renounced all of its Pacific possessions, including the Marshall Islands. On December 17, 1920, the Council of the League of Nations approved the South Pacific Mandate for Japan to take over all former German colonies in the Pacific Ocean located north of the Equator. The Administrative Centre of the Marshall Islands archipelago remained Jaluit. The German
Economy of the Marshall Islands Economy of the Marshall Islands The government of the Marshall Islands is the largest employer, employing 30.6% of the work force, down by 3.4% since 1988. GDP is derived mainly from payments made by the United States under the terms of the amended Compact of Free Association. Direct U.S. aid accounted for 60% of the Marshall Islands' $90 million budget. The economy combines a small subsistence sector and a modern urban sector. The subsistence economy consists of fishing and breadfruit, banana, taro, and pandanus cultivation. On the outer islands, production of copra and handicrafts income provide cash income. The modern