The attempts to establish a regular trade with Mexico ended in failure. But all this time the foreign commerce of Japan kept steadily growing. In 1612 two Dutch ships arrived at Hirado. These were the first ships sent from Amsterdam after receiving the news of the es tablishment of a factory in Japan. The Dutch commerce was now regularly established.
In 1613 another competitor entered the field. The East India Company of London, which had -long cherished the idea of trading with Japan, at last sent, in April 1611, Capt. John Saris with the express object of establishing a factory in Japan. Captain Saris arrived at Hiado, 11 June 1613, on board the Clove. Wil liam Adams, whose presence in Japan was known in England, was sent for, and with his help ample privileges were obtained, and a fac tory was established at Hirado.
After the death of Iyeyasu, 1 June 1616, the Shogun adopted a new policy toward the foreigners. He began with ordering the Dutch and the English to recall their agents at Osaka and Yedo, and to limit their trade to Hirado and Nagasaki. He adopted more severe meas ures toward Christianity, and seeing that the missionaries continued to come from the Philip pine Islands apinst his repeated orders, he pro hibited the visits of Spanish vessels in 1624. An embassy, which came from Manila in I623, for promoting friendly relations, was sent back in that year with orders to come no more.
The English and the Dutch, confined to the small market of Hirado, began a sharp compe tition between themselves, and even went so far as to fight with each other in the street. The English suffered very much from this competition, and felt themselves greatly re lieved when a treaty of defense was ma e be tween the two nations, June 1619. A part of the fleet of defense was stationed at Hirado and used to go out against Spanish ships and Chinese vessels trading with Manila, on pirati cal expeditions. This was the busiest time for the English factory (July 1620-August 1622). Very soon after the fleet was disbanded, the factory was dissolved as unprofitable, and the staff left for Batavia, 24 Dec. 1623. The re joicing of the Dutch at this event did not last long.
In 1624 the Dutch founded a commercial settlement in Formosa with the consent of China. There they found many Japanese al ready trading with the Chinese. Formosa, then known as Takasago, seems to have been a favor ite rendezvous of Japanese pirate vessels, and since the time of Hideyoshi several attempts had been made to subjugate the island. Such
being the case the Japanese vessels that entered the port refused to pay the customs duties levied by the Dutch. Hamada-Yahyoe, captain of a junk, was especially offended at the treat ment he received and took to japan 16 natives of Sinkan as ambassadors sent to offer the sov ereignty of the island to the Shogun, 1627. The Shogun received them at the court, and sent them back with presents. Some days before Hamada left Formosa, Pieter Nuyts, governor of Formosa, went to Japan to notify the gov ernment of the occupation of Formosa and to negotiate for the prohibition of Japanese junks going to Formosa. But he was not even re ceived by the Shogun, and returned to Formosa greatly offended. When Hamada arrived there with two junks in April 1628, the governor threw the natives of Sinkan into prison and con fiscated the Shogun's presents. He then took on shore all the arms in the junks and tried to keep the junks till he had consulted the chief factor of Hirado on the steps to be taken. Hamada called .on the governor with some com panions and taking him unaware made him prisoner. The Dutch came to the rescue in large numbers but could do nothing lest Nuyts should be killed. After some negotiations Nuyts was released in exchange for five hostages, among whom was his young son. Restitutioa was made for the damages suffered by the Japanese, and the junks were allowed to leave In company with a Dutch ship which carried five Japanese hostages to be exchanged with the Dutch at Nagasaki. On their arrival the gov ernment threw the Dutch hostages and the more important members of the crew of the Dutch ship into prison, sequestrated the ships at Hirado and put strict watch on the Dutch factory.
Greatly alarmed at this news the governor general, recalled Pieter Nuyts to Batavia and sent an envoy to Japan to explain the Formosa affair, 1629. But the Japanese government re mained inexorable and insisted on the surrender of the fort Zeelandia in Formosa. The gover nor-general decided to make Nuytsathe scape goat. When he arrived in 1632 and was deliv ered to the government, other prisoners were released, the Dutch trade was restored and the claim to Formosa was given up. Nuyts himself was released in 1636.