In the late 19th century, possession of the islands was claimed by Britain, Spain, and Imperial Germany. In 1885, the matter was brought to Pope Leo XIII for a decision. The Pope recognized the Spanish claim, but granted economic concessions to Britain and Germany. Palau then became part of the Spanish East Indies, along with the Mariana Islands, the Caroline Islands and the Marshall Islands. They were all administered from the Philippines.After being defeated in 1898 in the Spanish-American War and losing possession of the Philippine Islands, Spain sold the Palau archipelago to Imperial Germany in the 1899 German-Spanish Treaty.8 - 9 -