
The spice and sandalwood trade was at its height during the years of the Dutch East India Company, when the cultivation of coffee was introduced, and saw claims by both Holland and Portugal to sections of the island of Timor. These claims largely disregarded the prevailing cultural and linguistic differences already existing. Indigenous Melanesians had been joined as early as the fifteenth century by Chinese merchants, then by Portuguese traders and soldiers from Goa, Macau and Malacca as well as Malays from Malacca. Some few colonists from other Portuguese colonies in Africa also found their way with the traders.
By the eighteenth century Timorese tribal groups formed a number of small kingdoms ruled by liurai of varying influence and power. Thirty distinct ethno-linguistic groups have been identified, the commonest languages being Tetun, Mambai, Macassae and Tokodede. A small settlement of five hundred Arab Moslems near Dili were probably originally traders from Yemen.