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586 General History of Europe Philippines were ceded to the United States. 1 The following year the Caroline and Pelew Islands were transferred to Germany, and thus the territory of Spain was reduced to the Spanish peninsula, the Balearic and Canary Islands, and her small holdings in Africa. 1068. Latin-American Relations of the United States. Many forces conspired to extend the influence of the United States into PAN-AMERICAN UNION IN WASHINGTON Mexico, Central and South America, and the Caribbean. In general the Latin-American republics were formed from an amalga- mation of native and European races, both inexperienced in the art of self-government. They were rich in natural resources but backward in industries. They needed capital to develop their business and foreign enterprise to start their factories and rail- ways. They were plagued by many revolutions that resulted in the destruction of life and property. As they were near neighbors, the United States could not avoid taking an interest in their affairs. A Pan-American Congress first met in Washington in 1889 com- posed of delegates from nineteen countries of Latin America to discuss mutual interests. A bureau of American republics later l Spain also ceded to the United States the island of Guam in the Ladrone archipelago.