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Because those Colonies of the British Empire that had taken shape, the public opinion within was gradually leaning towards independence.
This is but a common sentiment. If they continued to be Colonies, all resources and supplies would be prioritarily allocated to the Native Land, which was very unfair to the local Population in the Colonies.
The cause of Colony independence was often not the Colonial Governments but the large numbers of immigrants who went to the Colonies.
Arthur understood this, and that's why he decided to localize all the Colonies instead of tightening control.
But by then, the United Kingdom and France no longer had the option of localizing their Colonies. Their Colonies were too far from the British mainland, and the time and effort needed for localization were several times more than that of Australasia.