German occupation.

On 4 August 1885, the German authorities informed the Spanish Government that they were extending the area of German protection to the Carolines. Spain's Foreign Minister José de Elduayen y Gorriti immediately rejected Germany's right to take this step. The Spanish government sent Berlin a note, affirming that the Carolines had belonged to Spain since 1543. A few days later, however, Spain guaranteed freedom of trade for Germans