of those respective campaigns. The Dutch by 1607 had in fact prevailed; the Spanish did not deliver their knock out blow they had hoped for and the Twelve Years' Truce effectively recognized the independence of the Republic. For England the treaty was a diplomatic triumph as well as an economic necessity. At the same time, the treaty was highly unpopular with the English public, many of whom considered it a humiliating peace. Many felt that James had abandoned England's ally, the Netherlands, in order to appease the Spanish crown and this damaged James's popularity. The treaty, however, made sure the Protestant reformation there had been protected, and James and his ministers refused the Spanish demand for Catholic toleration in England. After the defeat at Kinsale in 1602, the Treaty of Mellifont was concluded the following year between James I and the Irish rebels. In the subsequent London treaty Spain pledged not to support the rebels. The treaty was well received in Spain. Large public celebrations were held at Valladolid, the Spanish capital, where the treaty was ratified in June 1605, in the presence of a large English ambassadorial delegation led by Lord Admiral Charles Howard. Nevertheless, some members of the Catholic clergy criticized Philip III's willingness to sign a treaty with a "heretical power". The provisions of the treaty authorised merchants and warships of both nations to operate from each other's respective ports. English trade with the Spanish Netherlands (notably the city of Antwerp) and the Iberian peninsula was resumed. Spanish warships and privateers were able to use English ports as naval bases to attack Dutch shipping or to ferry troops to Flanders. The war had diverted Tudor colonial efforts, but the English who had invested in privateering expeditions during the war garnered enormous windfall profits, leaving them well placed to finance new ventures. As a result, the London Company was able to establish a settlement in Virginia in 1607. The establishment of the East India Company in 1600 was significant for the growth of England (and later Great Britain) as a colonial power. A factory was established at Banten, Java, in 1603 while the Company had successfully and profitably breached the Spanish and Portuguese monopoly. While the incipient illegal trade with the Spanish colonies was brought to an end, there was deadlock over English demands for the right to trade in the East and West Indies, which Spain adamantly