harbour was to remain a free port, and the empire contributed two million pounds towards rearranging and enlarging the harbour. A similar treaty was made with Bremen, the free port of that city being situated near the mouth of the Weser at Bremerhaven; and in 1888, the necessary works having been completed, the cities entered the Customs Union. They have had no reason to regret the change, for no part of the country profited so much by the great prosperity of the following years, notwithstanding the temporary check caused by the serious outbreak of cholera at Hamburg in 1892.
During the first years of the empire Bismarck had occasionally been asked to interest himself in colonial enterprise. He had refused, for he feared that foreign complications might ensue, and that the country might weaken itself Colonies. by dissipation of energy. He was satisfied that the Germans should profit by the commercial liberty allowed in the British colonies. Many of the Germans were, however, not contented with this, and disputes regarding the rights of German settlers in Fiji caused some change of feeling. The acquisition of German colonies was really the logical and almost necessary sequel of a protective policy. For that reason it was always opposed by the extreme Liberal party.
The failure of the great Hamburg house of Godefroy in 1879 threatened to ruin the growing German industries in the South Seas, which it had helped to build up. Bismarck therefore consented to apply to the Reichstag for a state guarantee to a company which would take over its great plantations in Samoa. This was refused, chiefly owing to the influence of the Liberal party. Bismarck therefore, who took this rebuff much to heart, said he would have nothing more to do with the matter, and warned those interested in colonies that they must depend on self-help; he could do nothing for them. By the support of some of the great financial firms they succeeded in forming a company, which carried on the business and undertook fresh settlements on the islands to the north of New Guinea. This event led also to the foundation of a society, the Deutscher Kolonial Verein, under the presidency of the prince of Hohenlohe-Langenburg, to educate public opinion. Their immediate object was the acquisition of trading stations. The year 1884 brought a complete change. Within a few months Germany acquired extended possessions in several parts both of Africa and the South Seas. This was rendered possible owing to the good understanding which at that time existed between Germany and France. Bismarck therefore no longer feared, as he formerly had, to encounter the difficulties with Great Britain which would be the natural result of a policy of colonial expansion.
His conversion to the views of the colonial party was gradual, as was seen in his attitude to the proposed acquisition of German stations in South-West Africa. In Namaqualand and Damaraland, British influence, exercised from Cape Africa. Colony, had long been strong, but the British government had refused to annex the country even when asked so to do by the German missionaries who laboured among the natives. In 1882 F. A. Lüderitz, a Bremen tobacco merchant, approached Bismarck on the question of establishing a trading station on the coast at Angra Pequeña. The chancellor, while not discouraging Lüderitz, acted with perfect fairness to Great Britain, and throughout 1883 that country might have acted had she known her mind. She did not, and in the summer of 1884 Bismarck decided no longer to await her pleasure, and the south-west coast of Africa from the frontier of the Portuguese possessions to the Orange river, with the exception of Walfish Bay, was taken under German protection. During the same year Dr Nachtigal was despatched to the west coast, and stealing a march on his British and French rivals he secured not only Togoland but Cameroon for the Germans. On the east coast Bismarck acted decisively without reference to British interests. A company, the Gesellschaft für deutsche Kolonization, was founded early in 1884 by Dr Carl Peters, who with two companions went off to the east coast of Africa and succeeded in November of that year in negotiating treaties with various chiefs on the mainland who were alleged to be independent of Zanzibar. In this region British opposition had to be considered, but in February 1885 a German protectorate over the territory acquired by Peters was proclaimed.
Similar events took place in the South Seas. The acquisition of Samoa, where German interests were most extensive, was prevented (for the time being) by the arrangement made in 1879 with Great Britain and the United States. But in 1884 and The Pacific. 1885 the German flag was hoisted on the north of New Guinea (to which the name Kaiser Wilhelmsland has been given), on several parts of the New Britain Archipelago (which afterwards became the Bismarck Archipelago), and on the Caroline Islands. The last acquisition was not kept. The Spanish government claimed the islands, and Bismarck, in order to avoid a struggle which would have been very disastrous to monarchical government in Spain, suggested that the pope should be asked to mediate. Leo XIII. accepted the offer, which was an agreeable reminiscence of the days when popes determined the limits of the Spanish colonial empire, all the more gratefully that it was made by a Protestant power. He decided in favour of Spain, Germany being granted certain rights in the islands. The loss of the islands was amply compensated for by the political advantages which Bismarck gained by this attention to the pope, and, after all, not many years elapsed before they became German.
Bismarck in his colonial policy had repeatedly explained that he did not propose to found provinces or take over for the government the responsibility for their administration; he intended to leave the responsibility for their material development to the merchants, and even to entrust to them the actual government. He avowedly wished to imitate the older form of British colonization by means of chartered companies, which had been recently revived in the North Borneo Company; the only responsibility of the imperial government was to be their protection from foreign aggression. In accordance with this policy, the territories were not actually incorporated in the empire (there would also have been constitutional difficulties in doing that), and they were officially known as Protectorates (Schutzgebiete), a word which thus acquired a new signification. In 1885 two new great companies were founded to undertake the government. The Deutsch-Ost-Afrika Gesellschaft, with a capital of £200,000, took over the territories acquired by Dr Peters, and for the South Seas the Neu-Guinea Gesellschaft, founded by an amalgamation of a number of firms in 1884, received a charter in 1885. It was not, however, possible to limit the imperial responsibility as Bismarck intended. In East Africa the great revolt of the Arabs in 1888 drove the company out of all their possessions, with the exception of the port of Dar-es-Salam. The company was not strong enough to defend itself; troops had to be sent out by the emperor under Captain Wissmann, who as imperial commissioner took over the government. This, which was at first a temporary arrangement, was afterwards made permanent.
The New Guinea Company had less formidable enemies to contend with, and with the exception of a period of three years between 1889 and 1892, they maintained a full responsibility for the administration of their territory till the year 1899, when an agreement was made and ratified in the Reichstag, by which the possession and administration was transferred to the empire in return for a subsidy of £20,000 a year, to be continued for ten years. The whole of the colonies have therefore now come under the direct administration of the empire. They were at first placed under the direction of a special department of the Foreign Office, and in 1890 a council of experts on colonial matters was instituted, while in 1907 a separate office for colonial affairs was created. In 1887 the two chief societies for supporting the colonial movement joined under the name of the Deutsche Kolonialgesellschaft. This society takes a great part in forming public opinion on colonial matters.
This new policy inevitably caused a rivalry of interests with other countries, and especially with Great Britain. In every spot at which the Germans acquired territory they found themselves in opposition to British interests. The settlement of Angra Germany and Great Britain.
