We have them fighting amongst themselves, that's exactly what we need. They are divided, so they cannot unify against us. Now we bring the others back on side with the carrots. Have the natives loyal to the king choose 10 of themselves to lead them, give them royal seals, make them advisors. Give them their cloth and their food.
The other natives will be jealous. At this point, we offer them cloth from the upcoming ship in 2 months time if they get back to work. They have their carrot, and no gold to bypass us. We bring back the lieutenant, and we have the mason build a defensive stockade around the town hall. The Royal Guard protect us and protect the loyal townies. Small patrols check the loyal villagers and ensure they are safe. Every so often, larger patrols check over the other townies as a projection of force.
Some of the elders have already joined with the King, so even the elders are divided. We bring the current council of elders back, and have them name their price in cloth and ale. Tell them to be reasonable, or the loyal elders will replace them as a new council of elders.
Fighting amongst ourselves is dumb, we can pass on that.