Formosa

**Formosa** (Kanggo: *Háarmuz*; Spanish: *Hermosa*), officially the **Republic of Formosa** (Kanggo: *Raa'úrigz Háarmuz*; Spanish: *República de Hermosa*) is an island country in East Asia. It controls the island of Formosa as well as the Yaitsa Islands.

The western coast of Formosa was inhabited by Proto-Austronesian peoples since circa 3000 BC when they migrated from southern China. Around 1000 BC the Great Formosan Migration took place in which Tramenic people migrated from southern China to the northwestern coast of the island while Donghai people migrated from Batanes to the northeastern coast.

## History

### Prehistory

Formosa was uninhabited until 3000 BC, when the ancestors of the Austronesian peoples migrated there from mainland Asia. It is widely considered that they arrived from southern China. Starting around 2000 BC, some people started leaving and started colonizing the rest of island Southeast Asia, while others remained.

Migration

The island was known to the Chinese as Lesser Liuqiu, in contrast to Greater Liuqiu corresponding to the Orange Islands.

### Colonization

In 1600 the southern part of the island was colonized by the Dutch in an attempt to challenge Spanish trade in the region. In response, the Spanish established a colony in San Salvador in the northern part of the island in 1626. The Dutch attempted to take the Spanish colony but failed and were forced to seize their colony. Koxinga later attempted to gain control of the island but was also repelled, and instead turned to Pangasinan.

The Qing attempted to attack the Spanish colonies but were ultimately unsuccessful.

## Government

### Administrative Divisions

Formosa is divided into three regions: Northern Hermosa, Western Hermosa, and Eastern Hermosa. These in turn are divided into provinces:

* Northern Hermosa
	+ Santissima Trinidad Province (capital: San Salvador)
	+ La Joba Province (capital: Santo Domingo) (note: La Joba comes from the Hobe i.e. Tamsui)
	+ Tecama Province (capital: Valdes) (note: Tecama comes from the settlement of Tek-kham; Valdes is named after governor Antonio Carreno Valdes)
	+ Cabalan Province (capital: Tijaolao) (note: Tijaolao comes from Kavalan *tRawlaw* "river")
	+ Bari Province (capital: Bari city)
	+ Nueva Navarra Province
* Western Hermosa
	+ Atayales Province
	+ Babuzas Province
	+ Joana Province
	+ Tirosen Province
	+ Zelanda Province
	+ Tancoia Province
* Eastern Hermosa
	+ Bunun Province (capital: Sabaha Bakalas)
	+ Saquiraya del Norte Province
	+ Saquiraya del Sur Province
	+ Rucay Province
	+ Amisan Province
	+ Paywan Province

## Economy

### Currency

Formosa uses the Formosan peso. The original Formosan peso (FMP) replaced the Philippine peso at par when the country became independent in 1946 with a peg of $1.00 = F₱2.00. Rapid inflation starting in the mid-1950s led to rising prices and poverty, and the government was forced to issue emergency F₱500, F₱1,000, and F₱5,000 notes (previously the largest note was F₱100). The peg was shifted to $1.00 = F₱4.50 in 1958, then to $1.00 = F₱7.20 just two years later in 1960. According to official reports, black market rates were much higher, with it reaching $1.00 = F₱1,040 toward the end of 1961. After the release of the final emergency note worth F₱10,000 in 1961, PRESIDENTX announced the replacement of the FMP with the New Formosan peso (FMS) with an exchange rate of FMP 1,000 = FMS 1. However, monetary policies barely changed and the currency continued to devalue, and the "effective" peg of $1.00 = F₱1.02 was lowered to $1.00 = F₱10 in 1965.