<P> Goa was the base for Albuquerque's conquest of Malacca in 1511 and Hormuz in 1515 . Albuquerque intended it to be a colony and a naval base, distinct from the fortified factories established in certain Indian seaports . Goa was made capital of the Portuguese Vice-Kingdom in Asia, and the other Portuguese possessions in India, Malacca and other bases in Indonesia, East Timor, the Persian Gulf, Macau in China and trade bases in Japan were under the suzerainty of its Viceroy . By mid--16th century, the area under occupation had expanded to most of present - day limits . </P> <P> Goa was granted the same civic privileges as Lisbon . Its senate or municipal chamber maintained direct communications with the king and paid a special representative to attend to its interests at court . In 1563 the governor proposed to make Goa the seat of a parliament representing all parts of the Portuguese east, but this was rejected by the King . </P> <P> The Portuguese set up a base in Goa to consolidate their control of the lucrative spice trade . Goods from all parts of the East were displayed in its bazaar, and separate streets were designated for the sale of different classes of goods: Bahrain pearls and coral, Chinese porcelain and silk, Portuguese velvet and piece - goods, and drugs and spices from the Malay Archipelago . </P> <P> In 1542, St. Francis Xavier mentions the architectural splendour of the city . It reached the height of its prosperity between 1575 and 1625 . Travellers marvelled at Goa Dourada, or Golden Goa . A Portuguese proverb said, "He who has seen Goa need not see Lisbon ." </P>

On the west coast of india goa was established as a small trading post by what colonial power