jan 17, 1902 - Madrid Convention
Description:
Madrid Convention was signed in reaction to the narrow defeat of rebels in the Spanish East Indies by the Spanish and Germans, as well as the German purchase of Palau and the Caroline Islands. In 1902, the European powers of the region [the UK, France, Netherlands, Germany and Spain] as well as the French and British ally Japan, met in Madrid to discuss the future of the Philippines.
Accepting that Spain could no longer suppress rebel movements without foreign aid and not wanting to set a president for other rebel activity in the East Asian Colonies, it was agreed that the the Spanish Colonies would be divided between the local powers for various sums.
After two months of negotiations, the colonies of the Spanish East Indies were divided among the following powers;
1. The German Empire would purchase the Visayas Islands, the central and southern portions of Luzon, and the Caroline Islands for $40 million. The Philippines would be organized as the Philippine Protectorate, while the Caroline Islands were merged with the Marshall islands Protectorate [bought from Spain in 1885].
2. The United Kingdom would purchase the Sulu archipelago, Palau, as well as the island of Mindanao for $15 million. Merging it with the British North Borneo into the Sulu Protectorate. Palau became its own colony.
3. Japan would purchase the Northernmost portion of Luzon [not including Manila] for $12 million, establishing as the Morutaru Colony [similar in status to Formosa].
4. France would be sold Palawan and the surrounding islands for $4 million.
At the end of the convention, the Spanish Colonial empire was reduced to its meager Africa possessions and Spain was payed $75 million [or 2.19 billion in modern currency].
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