The new administration found it hard to please the Dutch farmers, who among other grievances resented what they consid ered the undue favour shown to the natives, whose numbers had been greatly augmented by the flight of refugees from Panda. The natives were settled in 1846 in locations and placed under the general supervision of Sir (then Mr.) Theophilus Shepstone (q.v.). Sir Harry Smith, newly appointed governor of the Cape, met, on the banks of the upper Tugela, a body of farmers pre paring to recross the Drakensberg—which had been fixed as the northern frontier—and by remedying their grievances induced many of them to remain in Natal. By the migration of the others the whites were again considerably reduced, but the Boers who re mained were contented and loyal, and through the arrival of 4,50o emigrants from England in the years 1848-1851 and by subsequent immigration from oversea the colony became over whelmingly British in character.
From the time of the coming of the first considerable body of British settlers dates the development of trade and agriculture in the colony, followed somewhat later by the exploitation of the mineral resources of the country. At the same time schools were established and various churches began or increased their work in the colony. Dr. Colenso, appointed bishop of Natal, arrived in 1854. In 1856 the dependence of the country on Cape Colony was put to an end and Natal constituted a distinct colony with a legislative council of 16 members, 12 elected by the inhabitants and four nominated by the crown. At the time the white popula tion exceeded 8,000. While dependent on the Cape, ordinances had been passed establishing Roman-Dutch law as the law of Natal, and save where modified by legislation it remained in force. Indian Coolies Introduced.—The British settlers soon real ized that the coast lands were suited to the cultivation of tropical or semi-tropical products, and from 1852 onward sugar, coffee, cotton and arrow-root were introduced, tea being afterwards substituted for coffee. The sugar industry soon became of impor tance, and the planters were compelled to seek for large numbers of labourers. The natives, at ease in their locations, did not volun teer in sufficient numbers, and recourse was had to coolie labour from India. The first coolies reached Natal in 186o. They came under indentures, but at the expiration of their contract were allowed to settle in the colony. Up to 5869 some 5,00o Indians had come to Natal. Immigration then ceased but was resumed in 1874. This bringing in of Indians proved one of the most momentous steps taken in the history of South Africa, for the Indian population rapidly increased, the "free" Indians becoming market gardeners, farmers, hawkers, traders, and in time serious competitors of the whites. But in 186o and for many years afterwards these consequences were not foreseen, and alone among the South African states Natal offered a welcome to Asiatics.
In 1867 R. W. Keate (1814-73) became lieut.-governor, a post which he filled until 1872. His administration is notable, not so much for internal affairs but because he twice acted as arbi trator in disputes in which the Boer states were involved. In a dispute between the Transvaal and the Orange Free State he de cided (Feb. 187o) that the Klip river and not the upper Vaal was the frontier stream. A more famous decision, that known as the Keate Award, was given in Oct. 1871. It concerned the south western frontiers of the Transvaal, and the award, which was against the Transvaal pretensions, had important effects on the history of South Africa (see GRIQUALAND and TRANSVAAL).
During all this time little was done to alter the condition of the natives. There was scarcely an attempt to copy the policy, then fol lowed in Cape Colony, of encouraging the education and civiliza tion of the black man. Neither was Natal faced with the Cape prob lem of a large half-caste population. While the opportunity of educating and training a docile people was in the main neglected, savage abuse of power by their chiefs was prevented. Under the superintendence of Shepstone the original refugees were quiet and contented. This ideal lot, from the native point of view, drew such numbers of immigrants from disturbed districts that with the natural increase of population in 3o years the native inhabi tants increased from about ioo,000 to fully 350,00o. New genera tions grew up almost as ignorant as their fathers, but not with the same sense of dependence upon the white men. In this way was sown the seed of future trouble between the two races. The first serious collision between the natives and the government occurred in 1873. The Amahlubi, one of the highest in rank of the Bantu tribes of South Africa, fleeing from the cruelties of Panda, had been located by the Natal government under their chief Langalibalele (i.e., the great sun which shines and burns) in 1848 at the foot of the Drakenberg with the object of pre venting the Bushmen who dwelt in the mountains plundering the upland farmers. Here the Amahlubi prospered, and after the diamond fields had been discovered many of the young men who had been to Kimberley brought back firearms. These Langali balele refused to register, and entered into negotiations with sev eral tribes with the object of organizing a general revolt. Prompt action by Sir Benjamin Pine, then lieut.-governor of the colony, together with help from the Cape and Basutoland, prevented the success of Langalibalele's plan, and his own tribe, numbering some io,000 persons, was the only one which rebelled. The chief was captured, and exiled to Cape Colony (Aug. 1874). Per mitted to return to Natal in 1886, he died in 1889.