While in Brunei Brooke collected those of the families of Muda Hassim and his brothers who wished to be removed from the capital, and brought them down to Sarawak, where for years they were supported by him. 1846 closed, as it had begun, with every sign of prosperity. There was peace in all the neighbouring districts, and the native trade on the coast was considered to be very flourishing. Kuching, the capital of Sarawak, was continually increasing, as the natives removed to it from the less secure rivers, and there was every hope that the British Government would now really make an effort to develop the coast. They had decided to occupy the island of Labuan and establish a commercial settlement there, and this, it was expected, would lead to a more forward policy. Having received instructions from Her Majesty’s Government, Brooke, in May 1847, proceeded to Brunei to negotiate a treaty with the Sultan, which should not only regulate the trade relations between the two countries, but should contain a clause declaring that British subjects committing offences within His Highness’s dominions might only be tried by Her Majesty’s representative. The treaty was signed, and then Brooke left on board the Company’s steamer _Nemesis_, Captain Wallace, who was on his way to Singapore. When they arrived near the mouth of the Brunei river they were hailed by a native prahu and were informed that a Balignini pirate squadron was outside, capturing fishing and trading boats. As soon as the _Nemesis_ rounded the sandy point of the island of Muara they saw eleven Balignini prahus in full chase of a native vessel, but as soon as the steamer appeared the pirates turned towards the shore, and finding escape hopeless, pulled into a shallow bay, anchored their vessels, bows seaward, and all kept in position by hawsers connecting the prahus to each other. The steamer arrived, when the pirates immediately opened fire on her, and after rather a prolonged action they cut their cables. Some prahus pulled away to the north, others to the south, while the remainder were deserted by their crews. It is needless to enter into details, but it may be mentioned that in all the vessels taken were found crowds of captives, principally from the Dutch possessions. None of the prahus made the Balignini Islands, as the three that escaped the steamer were so riddled with shot that the crews had to take to their boats, and after a painful voyage at last reached home. The pirates of the eight other prahus were forced to seek refuge on shore, and after committing some murders and other excesses, were surrounded, and then they surrendered to the Sultan, who had them all put to death.