After the collapse of the confederacy, Enele Maʻafu established a stable administration in the Lau Islands and the Tongans. Other foreign powers such as the United States were considering the possibility of annexing Fiji. This situation was not appealing to many settlers, almost all of whom were British subjects from Australia. Britain, however, refused to annex the country, and a compromise was needed.[52]
In June 1871, George Austin Woods, an ex-lieutenant of the Royal Navy, managed to influence Cakobau and organise a group of like-minded settlers and chiefs into forming a governing administration. Cakobau was declared the monarch (Tui Viti) and the Kingdom of Fiji was established. Most Fijian chiefs agreed to participate, and even Ma'afu chose to recognise Cakobau and participate in the constitutional monarchy. However, many of the settlers had come from Australia, where negotiation with the indigenous people almost universally involved forced coercion. As a result, several aggressive, racially motivated opposition groups, such as the British Subjects Mutual Protection Society, sprouted up. One group called themselves the Ku Klux Klan in a homage to the white supremacist group in America.[53] However, when respected individuals such as Charles St Julian, Robert Sherson Swanston and John Bates Thurston were appointed by Cakobau, a degree of authority was established.[54]