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American settlers had to agree to become Mexican citizens in order to settle in Austin's colony.
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Stephen Austin was the first American impresario to bring settlers to Texas. He was loyal the the Mexican government until Santa Anna voided the Mexican Constitution and pronounced himself dictator.
Mexico had been promoting immigration to that region to the point where there was a huge influx of American citizens interested in the cheap land (as if they didn't have enough). This worried the Mexican government, who decided to restrict immigration and take away some of the land granted to the american settlers. This pissed them off royally, and they rebelled.
Why did Mexican officials want to bring more settlers to Texas?because they were trying to colonize Texas and make it part of Mexico.