taxation system would shock the population more than exercising their own system under the Rajahs. There were also concerns about its financial viability and probable drain on the Exchequer. Brooke then thought to sell his kingdom to Belgium, France, Russia or to Brunei again, or to other European powers rather than to the neighbouring Dutch who were ready to retake Sarawak. Brooke's intention had already been decried by neighbouring British governors such as Labuan Governor Hennessy who, while respecting the Rajah, considered Sarawak a mere vassal state of Brunei. Prior to the ongoing piracy suppression, a major battle with the Illanuns of Moro pirates from the southern Philippines occurred in mid-November 1862. In 1864, the United Kingdom appointed a Consul to Sarawak and recognised the Raj,. British warships saluted the Raj's flag with 21 guns while entering Kuching as a sign of recognition. However, Netherlands refused recognition. Brooke then expanded his Raj into territory of Brunei. In 1861, he acquired the vast Rajang River basin, which subsequently became the Third Division. The expansion continued after his death in 1868, when he was succeeded by his nephew, Charles Brooke. Under Charles' administration, Sarawak's economy grew rapidly, especially later on with the discovery of oil, introduction of rubber, and the construction of public infrastructure as his main priorities to stabilise the economic situation and reduce government debts. He encouraged the migration of Chinese to boost the economy, especially in agricultural sectors, where most of them settled around Kuching (mainly Hokkien and Teochew), Sibu (mainly Fuzhou) and Sri Aman (mainly Teochew). Charles was trusted and respected for his fairness and strict order, although he was not so popular among the local Malays as his uncle, while being a close friend to the Dayak. Sarawak prospered under his rule and he did not seek protection from any other European powers although requests for protection from the British in 1869 and 1879 were rejected. Charles continued to seek protection from the British, securing Protected State status from them on 14 June 1888. He ruled Sarawak until his death in 1917 and was succeeded by his son, Charles Vyner Brooke. World War II and decline Following World War I, the Empire of Japan began to expand their range in Asia and the Pacific. Vyner became aware of the growing threats and began to institute reforms. Under the treaty of protection, Britain was responsible for Sarawak's defence