Establishment of The Colonial State
In 1702, Lisbon sent its first governor successfully, António Coelho Guerreiro, to Lifau, which became capital of all Portuguese dependencies on Lesser Sunda Islands. Former capitals were Solor and Larantuka. Portuguese control over the territory was tenuous particularly in the mountainous interior. Dominican friars, the occasional Dutch raid, and the Timorese themselves competed with Portuguese merchants. The control of colonial administrators was largely restricted to the Dili area, and they had to rely on traditional tribal chieftains for control and influence.
The capital was moved to Dili in 1769, due to attacks from the Topasses, who became rulers of several local kingdoms (Liurai). At the same time, the Dutch were colonising the west of the island and the surrounding archipelago that is now Indonesia. The border between Portuguese Timor and the Dutch East Indies was formally decided in 1859 with the Treaty of Lisbon. In 1913, the Portuguese and Dutch formally agreed to split the island between them. The definitive border was drawn by the Permanent Court of Arbitration in 1916, and it remains the international boundary between the modern states of East Timor and Indonesia.
For the Portuguese, East Timor remained little more than a neglected trading post until the late nineteenth century. Investment in infrastructure, health, and education was minimal. Sandalwood remained the main export crop with coffee exports becoming significant in the mid-nineteenth century. In places where Portuguese rule was asserted, it tended to be brutal and exploitative.
Read more about this topic: Portuguese Timor
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