fortresses that comprised the Portuguese Empire: Malacca finally succumbed in 1641. Important battles also took place in the South China Sea, initially with combined fleets of Dutch and English vessels, and subsequently exclusively Dutch ships assaulting Macau. Dutch attempts to capture Macau, to force China to replace the Portuguese or to settle the Pescadores failed, in part because of the long-standing diplomacy between the Portuguese and the Ming, but the Dutch were ultimately successful in acquiring the monopoly of trade with Japan. Meanwhile, the Dutch were unable in four attempts to capture Macau from where Portugal monopolised the lucrative China–Japan trade. The Dutch established a colony at Tayouan in 1624, present-day Anping in the south of Taiwan, known to the Portuguese as Formosa and in 1642 the Dutch took northern Formosa from the Spanish by force. The Dutch intervened in the Sinhalese–Portuguese War on Ceylon from 1638 onwards, initially as allies of the Kingdom of Kandy against Portugal. The Dutch conquered Batticaloa in 1639 and Galle in 1640 before the alliance broke down. After a period of triangular warfare between the Dutch, Portuguese, and Kandyans, the alliance was remade in 1649. After exploiting and then double-crossing their Kandyan allies, the Dutch were able to capture Colombo in 1656 and drove the last Portuguese from Ceylon in 1658. Sporadic warfare with Kandy continued for over a century. In the aftermath of the destruction of the "Tordesillas system", Portugal had managed to retain Diu but not Hormuz. Goa and Macau had also survived but not Malacca. Nevertheless, the downfall of the Portuguese Indian empire was not territorial but economic: the competition of other European powers whose demographics were more numerous, access to capital easier, and access to markets more direct than Portugal's. Lisbon's distributive monopoly had been stolen from the Islamic world and accrued of more direct competition, it crumbled quickly. In all, and also because the Dutch were kept busy with their expansion in Indonesia, the conquests made at the expense of the Portuguese were modest: some Indonesian possessions and a few cities and fortresses in Southern India. The most important blow to the Portuguese eastern empire would be the conquest of Malacca in 1641 (depriving them of the control over these straits), Ceylon in 1658, and the Malabar Coast in 1663, even after the signing of the peace Treaty of The Hague (1661). Sugar War – Government-General Vs. the WIC