In 1885 he successfully arbitrated between Germany and Spain in a dispute concerning the Caroline Islands.
Wilson of the missionary ship " Duff " visited the Society group, Fiji, Tonga and the Marquesas, and added to the knowledge of the Paumotu and Caroline Islands.
As foreign secretary Herr von Billow was chiefly responsible for carrying out the policy of colonial expansion with which the emperor had identified himself, and in 1899, on bringing to a successful conclusion the negotiations by which the Caroline Islands were acquired by Germany, he was raised to the rank of count.
Prince Bismarck looked upon the rights of Spain over the Caroline Islands in the Pacific as so shadowy that he sent some German war-ships to take possession of a port in the largest island of the group. The action of Germany caused great indignation in Spain, which led, in Madrid, to imposing demonstrations.
Among the numerous orders he received we may mention that he was the first Protestant on whom the pope bestowed the order of Christ; this was done after the cessation of the Kulturkampf and the reference of the dispute with Spain concerning the Caroline Islands to the arbitration of the pope.