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Situated in the Pacific Ocean, the Federated States of Micronesia (FSM) encompasses all the Caroline Islands except Palau. It is composed of four island cluster states: Pohnpei, Kosrae, Chuuk, and Yap. The FSM was formerly under US rule as part of the UN Trust Territory of the Pacific Islands. An agreement which granted internal sovereignty in free association with the US became operational in 1986, and the Trust was formally dissolved in 1990. The islands continue to receive considerable aid from the US.