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Melbourne is the capital and largest city of the state of Victoria, and the second largest city in Australia, with a population of 52,117 in the Central Business District and 3,488,750 in the metropolitan area (census 2001).

Australia may have been sighted by Portuguese sailors in 1601, and Dutch navigators landed on the forbidding coast of modern Western Australia several times during the 17th century. Captain James Cook claimed it for Great Britain in 1770. At that time, the native population may have numbered 300,000 in as many as 500 tribes speaking many different languages. The Aboriginal population currently numbers more than 300,000, representing about 1.7% of the population. Since the end of World War II, efforts have been made both by the government and by the public to be more responsive to Aboriginal rights and needs.

As well as the natives, colonisation and modernisation has brought many flora and fauna to Australia from around the world, some of which have done too well and have reached plague proportion, often threatening, if not having already wiped out various native species. One species that saw its demise due to hunting after European settlement was the Tasmanian Tiger, or Thylacine.

Immigration has been a major factor in Australia's development since the beginning of European settlement in 1788. For generations, most settlers came from Britain and Ireland, and the people of Australia are still predominantly of British or Irish origin, with a culture and outlook similar to that of the United Kingdom and the United States.

Sydney is located in a coastal basin between the Pacific Ocean to the east and the Blue Mountains to the west. Sydney features the largest natural harbour in the world, Port Jackson, and also enjoys more than 70 beaches, including the famous Bondi Beach.

With a population of approx. 170,000 people in the city proper (known as the "city of Sydney") and a metropolitan area population exceeding 4 million, the Sydney metropolis is the larger of the two main financial, transport, trade and cultural centres of Australia (the other being Melbourne, Sydney's long term rival to the title of pre-eminent Australian city).