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The Marshall Islands were formally claimed by Spain in 1874 through its capital in the East Indies, Manila. This marked the start of several strategic moves by the German Empire during the 1870s and 80s to annex them (claiming them to be "by chance unoccupied").[22] This policy culminated in a tense naval episode in 1885, which did not degenerate into a conflict due to the poor readiness of Spain's naval forces and the unwillingness for open military action from the German side. Following papal mediation and German compensation of $4.5 million, Spain reached an agreement with Germany in 1885: the 1885 Hispano-German Protocol of Rome. This accord established a protectorate and set up trading stations on the islands of Jaluit (Joló) and Ebon to carry out the flourishing copra (dried coconut meat) trade. Marshallese Iroij (high chiefs) continued to rule under indirect colonial German administration, rendered tacitly effective by the wording in the 1885 Protocol, which demarcated an area subject to Spanish sovereignty (0-11ºN, 133-164ºE) omitting the Eastern Carolines, that is, the Marshall and Gilbert archipelagos, where most of the German trading posts were located.[23] The disputes were rendered moot after the selling of the whole Caroline archipelago to Germany 13 years later.[24] At the beginning of World War I, Japan assumed control of the Marshall Islands. The Japanese headquarters was established at the German center of administration, Jaluit. On January 31, 1944, American forces landed on Kwajalein atoll and U.S. Marines and Army troops later took control of the islands from the Japanese on February 3, following intense fighting on Kwajalein and Enewetak atolls. In 1947, the United States, as the occupying power, entered into an agreement with the UN Security Council to administer much of Micronesia, including the Marshall Islands, as the Trust Territory of the Pacific Island