European Colonization
European explorers - first the Portuguese in search of the Spice Islands (Indonesia) and then the Spanish - reached the Carolines in the 16th century, with the Spanish establishing sovereignty.
Spain sold the islands to Germany in 1899 under the terms of the German–Spanish Treaty of that year.
Yap was a major German naval communications center before the First World War and an important international hub for cable telegraphy. It was occupied by Japanese troops in September, 1914, and passed to the Japanese Empire under the Versailles Treaty in 1919 as a mandated territory under League of Nations supervision. US commercial rights on the island were secured by a special US-Japanese treaty to that effect, concluded on February 11, 1922.
Read more about this topic: History Of The Federated States Of Micronesia
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“Americans want action for their money. They are fascinated by its self-reproducing qualities if it’s put to work.... Gold-hoarding goes against the American grain; it fits in better with European pessimism than with America’s traditional optimism.”
—Paula Nelson (b. 1945)