Papua New Guinea remained fairly isolated from Western influences until the nineteenth century, although infrequent contacts were documented as early as the 1500s. The Dutch annexed the western half of New Guinea between 1828 and 1848. The British and Germans divided the eastern half in 1885; Great Britain took the south and Germany took the north. Great Britain transferred control of the southeastern portion of New Guinea to Australia in 1902, which renamed it Papua. Australia seized the northern region during World War I and assumed complete control of eastern New Guinea under a League of Nations mandate. The Japanese occupied most of the colonized areas of New Guinea during World War II. However, after the war, control of the island reverted to Australia as a United Nations trusteeship. Australia maintained control until Papua New Guinea claimed its independence in 1975. Australia remains one of Papua New Guinea's primary trading partners.
Since independence, Papua New Guinea has functioned as a parliamentary democracy, with a capital in Port Moresby and 19 other administrative provinces. About 15 percent of the population live in major urban areas. The country's national currency is the Kina (K1.00 equals about US$.31 as of February 2001.)
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