The Free State was allowed to retain a considerable area of good land which it had conquered on the north side of the Caledon River, but the adjustment reached was anything but satisfactory. The British had now established their authority to the south of the republic all the way from Cape Colony to Natal, and, thus, had extinguished a second time the persistent Africander hope of extending their territory to the sea. Thus, in 1869, recommenced the British advance toward the interior. Another momentous step towards enlarging the sphere of British influence was taken almost immediately. Diamonds were discovered in 1869, in a district lying between the Modder and the Vaal rivers, where the present town of Kimberley stands. Within a few months thousands of diggers and speculators from all parts of South Africa, Europe, America, and from some parts of Asia, thronged into the region and transformed it into a place of surpassing value and interest. The question of ownership was raised at once. The Orange Free State claimed it. The Transvaal Republic claimed it. It was claimed by Nicholas Waterboer, a Griqua captain, son of old Andries Waterboer; his claim being based on an abortive treaty made with the elder Waterboer in 1834, when, at Doctor Philip’s suggestion, the attempt was made to interpose between the old colony and the northern populations a line of three native states under British protection. And it was claimed by a native Batlapin chief. Three of these claimant—the Transvaal Republic, Nicholas Waterboer for the Griquas, and the Batlapin chief for his clan—agreed to settle the conflict by arbitration, naming the governor of Natal as arbitrator. The governor promptly awarded the disputed ownership to Nicholas Waterboer the Griqua, who as promptly placed himself under the British government, which, with equal promptitude, constituted the district a crown colony under the name of Griqualand. The Orange Free State, not having been a party to the arbitration, protested, and was afterwards sustained by the decision of a British court, which found that Waterboer’s claim to the territory was null and void. But the colony had been constituted and the British flag unfurled over it before the finding of the court could stay proceedings. Without admitting or denying the Free State’s contention, the British government obtained a quitclaim title for a money consideration. It was represented that a district so difficult to keep in order, because of the transient and turbulent character of the population, should be under the control of a more vigorous government than that of the Free State. Finally, the British offered and the Free State authorities accepted, £90,000 in settlement of any claim the republic might have to the territory of Griqualand.