The Treaty of Peace with Morocco that followed the 1859–60 War entailed the acquisition of a new city perimeter for Melilla, bringing its area to the 12 km2 the city currently stands. Following the declaration of Melilla as a free port in 1863, the population began to increase, chiefly with Sephardic Jews fleeing from Tetouan who fostered trade in and out the city. The new 1894 agreement with Morocco that followed the 1893 Margallo War between Spaniards and Riffian tribesmen increased trade with the hinterland, bringing the economic prosperity of the city to a new level.