Spira Islands

The Spira Islands are a small archipelago in the Indian Ocean located 920km north-west of Western Australia; or 776km south of Java, Indonesia. They are an Overseas Territory of the Federal Republic of Neu Westfalen, and are home to a small population of approximately 7,500; including 850 defence personnel.

Pre-20th Century
In 1643 Captain William Mynors of the Royal Mary, an English East India Company vessel, first sighted the islands. Captain Mynors gave them the name "Spira" (referring to the word "Spiral"), due to their twisting, circular geographic shape. He would become the first European to set foot on the islands.

After becoming a De facto territory of the Dutch East Indies in 1800, the previously uninhabited islands were then formally occupied by the German Empire between 1864 to 1914. The Germans primarily used the islands as a resupply outpost for trade ships, with a small contingent of European fisherman also earning a living by selling their catch to passing ships.

Early 20th Century
With the outbreak of World War I Imperial Germany quickly abandoned the islands, seceding full control to the Dutch. The Dutch would then hold the islands until 1942, when the Japanese Empire seized control; following their occupation of Indonesia during World War II.

Indonesian Period
The Islands briefly returned to Dutch control after Japan's defeat in WWII, only to be handed over to Indonesia in 1949; as part of their independence from the Netherlands. During the anarchy and destruction of post-revolutionary Indonesia, the Spira Islands became an unimportant backwater as the new Sukarno administration struggled to rebuild the nation.

Acquisition by Neu Westfalen
In late 1949 the Neu Westphalian government expressed interest in purchasing the islands for their strategic defence & maritime fishing value. Having once been a territory of the German Empire, many Neu Westphalians wished to "reclaim" the islands; which they regarded as an historically Germanic territory. Indeed many Neu Westphalians had once worked on the islands during the reign of Imperial Germany, hence giving the islands a fond place in their national folklore.

Prior to any purchase negotiations, the Indonesians first demanded a thorough survey be carried out to access the value of any potential oil or mineral deposits. A subsequent examination by American surveyors reported only small amounts of oil and no valuable minerals of any significant scale. After extensive negotiations, the cash-strapped Indonesian administration finally accepted the Neu Westphalian offer to purchase the islands for $21 million USD; or approximately $183 million when adjusted for inflation today. Sovereignty of the islands was officially transferred to Neu Westfalen on April 2nd, 1951.

Sovereignty Dispute
The sale of the islands to a foreign power angered many in Indonesia during a time when anti-Imperialist sentiment was high. This consequently led to a call by Indonesian Nationalists to nullify the deal; by force if necessary. When the Suharto regime seized power in 1966 they began an aggressive foreign policy towards Neu Westfalen, with the aim of building international pressure to force a reversal of the deal; Suharto found few allies however.

In 1975 a new survey by carried out by British scientists determined that the quantity of offshore oil deposits had been "significantly underestimated" by the American survey team, prior to the sale. Initially the government of Neu Westfalen implored the scientists keep the findings quiet, fearing the revelations would incite Suharto further. The Neu Westfalen government would later admit they attempted to bribe the scientists into silence, however the survey was soon leaked to international media anyway. As expected the findings infuriated Suharto, prompting him to suspend all relations with Neu Westfalen. Suharto accused Neu Westfalen of deliberately concealing the value of the island's oil reserves, even claiming the Neu Westfalen government "had known all along and lied to us".

Fearing an Indonesian military annexation, Neu Westfalen constructed a permanent military base to solidify their sovereignty over the islands. The islands would remain a disputed territory, however only Indonesia refuses to officially recognize Neu Westfalen's sovereignty.