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The British established a presence in New South Wales for several reasons:

1. To expand the British empire, and prevent the French from gaining a foothold in the Australian continent or in that part of the Pacific.

2. To solve the problem of Britain's overcrowded prisons (a consequence of the Industrial Revolution) by establishing a new penal colony in a land which showed promise for eventually becoming self-supporting. Britain had been sending their excess prisoners to North America, but the American War of Independence put a stop to the practice. Following this, the English were no longer able to transport surplus prisoners who couldn't legally be executed to North America.

3. Australia could provide commercial and political gains to Britain.

4. Due to war, Britain needed to find an alternative supply of Flax and timber as her Baltic supply was under threat. It was believed that nearby Norfolk Island would provide this.

5. Britain needed a port in the East to promote trade with China and to extend its naval and commercial power.

6. The continent had Natural Resources which England wanted.

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