The Principality of Andorra is a small country in southwestern Europe, located in the eastern Pyrenees mountains and bordered by Spain and France. It is ruled jointly by two "princes" - the Bishop of Urgell (a town in Spain) and the head of state of France (whatever his title might be).
Some speculation is required here. Andorra was not under German control when the Race arrived; ergo Germany could not assert a claim to Andorra at the Peace of Cairo. The Second Contact map does not specifically show Andorra's borders, so there is room for ambiguity.