Western colonialism - Spanish Empire, New World, Colonization: Only gradually did the Spaniards realize the possibilities of America. They had completed the occupation of the larger West Indian islands by 1512, though they largely ignored the smaller ones, to their ultimate regret. Thus far they had found lands nearly empty of treasure, populated by naked natives who died off rapidly on contact with Europeans. In 1508 an expedition did leave Hispaniola to colonize the mainland, and, after hardship and decimation, the remnant settled at Darién on the Isthmus of Panama, from which in 1513 Vasco Núñez de Balboa made his famous march to the Pacific. On the Isthmus