The Philippine capital of Manila was founded by King Philip II of Spain. In the years that followed, the Spanish successfully prevented the Dutch, Portuguese and Chinese from settling in the Philippines. During the Seven Years' War the British occupied Manila, but agreed to return it to Spain in 1763. During WWII, the Japanese took control during a 1942 invasion, and eventually the U.S. recaptured the islands and returned them to the Philippines. In 1946, the country was granted full independence.