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Why did the United States pay Spain $20 million for the Philippines?
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Spanish-American War
Theodore Roosevelt leading the Rough Riders during the Spanish-American War, 1898; print created by Kurz & Allison.
In the Treaty of Paris (1898), which concluded the Spanish-American War, the United States agreed to pay Spain $20 million as part of the terms for acquiring the Philippines.12
While the United States demanded possession of the archipelago, Spain accepted this requirement with great reluctance. The $20 million payment was designated nominally as compensation for public buildings and public works that Spain had developed in the islands. This financial stipulation served as a formal component of the agreement that finalized the transfer of sovereignty from Spain to the United States.12