Two Phases for Compact U(1) Pure Gauge Theory in Three Dimensions

We show that if actions more general than the usual simple plaquette action ($\sim F_{\mu\nu}^2$) are considered, then compact $U(1)$ {\sl pure} gauge theory in three Euclidean dimensions can have two phases. Both phases are confining phases, however in one phase the monopole condensate spontaneously `magnetizes'. For a certain range of parameters the phase transition is continuous, allowing the definition of a strong coupling continuum limit. We note that these observations have relevance to the `fictitious' gauge field theories of strongly correlated electron systems, such as those describing high-$T_c$ superconductors.