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The eastern coastal strip of Australia was claimed on behalf of the British Empire in 1770 by Lieutenant James Cook, and was named by him as New South Wales. The western third, now Western Australia but then known as New Holland, was claimed, but unsettled by the Dutch.

The major purpose of New South Wales was as a penal colony, to which convicts from the British Isles were transported. The first convicts to come to Australia came on six of the eleven ships, collectively known as the First Fleet, and landed at Port Jackson on 26 January 1788. This day is now celebrated as Australia Day.

The island of Van Diemen's Land (now Tasmania) was first settled in 1804, which helped to offset French interests in the south. At this point, the continent was not known as Australia. That occurred only in 1824, when the name proposed by Matthew Flinders was officially adopted.

Western Australia was first settled by the British in 1826, when fears about the establishment of a French colony forced the governor of New South Wales, Ralph Darling, to establish a settlement at King George sound. In 1829, the Swan River colony was established.

In 1836, the first free settlement in Australia was established, the colony of South Australia, where Adelaide is located now. This cemented the inclusion of the entire continent of Australia within the British Empire.

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