In 1971, Nevada real estate millionaire Michael Oliver sought to create a libertarian paradise free from taxes, welfare, and government regulation. His Phoenix Foundation poured money into dredging sand from Australia to build artificial land atop two submerged coral atolls south of Fiji and Tonga known as the Minerva Reefs. By January 1972, Oliver declared the creation of the Republic of Minerva, raised a new flag, minted gold coins, and issued a declaration of independence sent to nations worldwide.
The newly minted micronation claimed authority over the surrounding waters and announced plans for a futuristic city with no taxes or trade restrictions. However, neighboring Pacific nations saw the creation of an unregulated tax haven as a threat to regional sovereignty and security. King Tāufaʻāhau Tupou IV of Tonga was particularly enraged by the audacity of foreign developers claiming territory historically used by Tongan fishermen.
In June 1972, Tonga issued a formal proclamation claiming sovereignty over the reefs. King Tupou personally led an expedition aboard a royal vessel carrying a military detachment and the royal brass band to the Minerva Reefs. The Tongan forces tore down the Republic of Minerva flag, lowered the nation's symbolic markers, and raised the Tongan national flag while playing anthems.
A short standoff ensued with nearby Fijian and regional authorities supporting Tonga's claim. In late 1972, the South Pacific Forum officially recognized Tonga's annexation of the reefs, effectively dissolving the libertarian island project into the sea.