In 1747 the Dutch East India Company, which in 1705 had obtained a firm
footing in Java, and in 1745 had established its authority over all
the north-eastern coast of that island, extorted a monopoly of trade
at Banjermasin and set up a factory. Nearly forty years later[27]
(1785), the reigning prince having rendered himself odious to his
subjects, the country was invaded by 3000 natives of Celebes. These
were expelled by the Dutch, who dethroned the Sultan, placing his
younger brother on the throne; and he, in reward for their services,
ceded to them his entire dominions, consenting to hold them as a
vassal. This is the treaty under which the Dutch claim the sovereignty
of Banjermasin and whatever was once dependent on it. In this way
the Dutch got a hold on the country which they have never relaxed;
and, after the interval during which their possessions in the East
Indies were administered by England,[28] they strengthened that hold
gradually, year by year, till now two-thirds or more of the island
is under their flag and feels the benefits of their rule. If there
are still any districts of this large area where Dutch influence has
even now barely made itself felt, they will not long remain in their
isolation; for the Controleurs are extending their influence even
into the most remote corners of the territory.

To turn again to the north-western coast and the doings of Englishmen,
in 1763 the Sultan of Sulu ceded to the East India Company the
territory in Borneo which had been given him when he killed the usurper
Abdul Mubin in Bruni. In 1773 a small settlement was formed on the
island of Balambangan, north of Bruni; and in the following year
the Sultan of Bruni agreed to give this settlement a monopoly of the
pepper trade in return for protection from piracy. In the next year,
however, Balambangan was surprised and captured by the Sulus. It was