In 1928, Huang Fu, foreign minister of the newly formed Nationalist government in Nanjing, reached agreements with the United States and Great Britain to settle the damages caused by the Nanjing Incident, and the Kuomintang agreed to apologize and pay significant compensation to both countries without disclosing the exact sum to save face for the Chinese. Although the Kuomintang suffered financial loss as a result of this settlement, the Nationalist government did receive international recognition and established formal diplomatic relationship with two of the world's great powers for the first time after the Northern Expedition.