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In order to firmly establish her power in this quarter, Germany, in 1885, raised a quarrel with Spain concerning the sovereignty of the Caroline and Pelew Islands, but this quarrel was composed by the mediation of the Pope.

Frederick the Great “preferred regiments, as a ship cost as much as a regiment.” Bismarck preferred “the Greater Germany,” and his policy was “the German trade with the German flag” (i.e., the German flag shall go where German trade has already established a footing). This policy proved very successful, not only in the West Pacific, but also in the North Pacific and the eastern coast of Africa. Germany now is the chief colonizing rival of England.

In 1883 Mr. Chester annexed all the parts of New Guinea with the adjacent islands lying between 141 deg. and 155 deg. of E. long. Lord Derby; however, annulled this annexation, regarding it as an unfriendly act, and he also assured the Colonial Government that “Her Majesty’s Government are confident that no foreign power contemplates interference in New Guinea.” This occurred in May, 1884. But this prognostication did not prove true, for in November of the same year Germany occupied New Guinea.