Following Spain’s 1898 defeat in the Spanish-American War, it sold its remaining Pacific possessions, including the Carolines, to Germany.
The German flag was hoisted over Ponape in October 1899, and it became the seat of the District Commissioner for Eastern Karolinen.
A German post office was opened on Ponape on 12 October 1899. This first post office was destroyed by a typhoon on 20 April 1905, which also destroyed the first Ponape canceller. The post office was rebuilt and remained open until Ponape was occupied by Japanese forces on 7 October 1914. Due to disruptions in steamship service to the islands, the last known mail departing Ponape was posted in August 1914.