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Australia marks the beginning of the Second British Empire. It was planned by the government in London and designed as a replacement for the lost American colonies.[52] The American Loyalist James Matra in 1783 wrote "A Proposal for Establishing a Settlement in New South Wales" proposing the establishment of a colony composed of American Loyalists, Chinese and South Sea Islanders (but not convicts).[53] Matra reasoned that the land country was suitable for plantations of sugar, cotton and tobacco; New Zealand timber and hemp or flax could prove valuable commodities; it could form a base for Pacific trade; and it could be a suitable compensation for displaced American Loyalists. At the suggestion of Secretary of State Lord Sydney, Matra amended his proposal to include convicts as settlers, considering that this would benefit both "Economy to the Publick, & Humanity to the Individual". The government adopted the basics of Matra’s plan in 1784, and funded the settlement of convicts.[54]
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