It would seem that the French continued to prosper notwithstanding their reverses, for the Portuguese Court became thoroughly alarmed second some three years later at the news of their strength and prosperity and resolved upon decisive measures to destroy the colony. Two ships of war were sent to Brazil early in 1564 under the command of Estacio de Sa, a nephew of the governor-general, and orders were sent to Bahia to aid the expedition with all the available forces in the country, and to establish a Portuguese colony on the disputed territory. The rest of the year was spent in organizing the expedition at Bahia and it was not until some time in January 1565, that he set sail for Rio de Janeiro. Arriving off the harbor entrance on February 6th, he found the French so strong and the natives so hostile that he concluded to seek reinforcements at S. Vicente before making his attack. These not being obtainable at that place, the rest of the year was spent in awaiting them from Bahia and Espirito Santo. Finally, on January 20th, 1566, Estacio de Sa sailed for Rio de Janeiro, where he arrived early in March. A landing was effected at a place near the Sugar Loaf where a settlement was made and fortified under the name of “Villa Velha,” the site of which is supposed to be where the military academy now stands. The French and their Indian allies made frequent attacks, but the Portuguese remained strictly on the defensive during the rest of the year, their inferior force rendering it impossible to assume the offensive. The Portuguese, however, seem to have had the fullest confidence in their ultimate success, for, although shut up in a narrow gap on the sea shore and closely besieged by a superior force, Estacio de Sa advanced his feeble little colony to the dignity of a city and called it São Sebastião, in homage to the young King of Portugal—which name the city still bears.