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Kiribati was previously named the Gilbert Islands. The island shown in the joke is actually the island of “Kiritimati” (formerly Christmas Island). It is one of the islands of Kiribati. The whimsically named points are villages, not cities.

The Kiribati islands are quite remote being far out in the Pacific (straddling the equator). During World War II a bloody battle occurred when US forces landed on the island of Betio to capture the island from the Japanese. It was the Battle of Tarawa.
 
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