 Consequently, the First Philippine Republic was established in Malolos, Bulacan.In the meantime, Spain sold the Philippines to the United States and the First Philippine Republic resisted the new American colonizers in the Philippine–American War which the Republic lost due to its diplomatic isolation (No nation recognized the First Republic) as well as due to the numerical superiority of the American army.The Americans then set up the cool mountain city of Baguio as a summer retreat for its officials.