Unit 3: From Unit 3 Reading Notes

I. Reasons for Founding Singapore in 1819

1. Economic Reasons
a. Importance of China Trade
i. Why the China trade? Why tea?
1. The British were interested in the Malay Archipelago because of
the growth of China trade.
2. Tea became the most important trading commodity of the China
trade, so the government reduced the tax for tea from over 100%
to only 12.5%.
3. As lower taxes made tea more affordable, drinking tea gained
mass appeal and hence emerged a new mass consumer market,
with tea imports increasing from over 2.5 million pounds in 1761 to
over 23 million pounds by 1800.
ii. Why did tea become a lucrative trade?
1. With such a large consumer market, more traders were attracted
to the tea trade to amass high profits in the trade.
iii. Why did a trade imbalance emerge?
1. There was little China wanted from Britain, and Britain faced fierce
competition from Dutch and Muslim traders who were involved in
the textile trade.
2. Britain failed to find a suitable exchange commodity for the tea
they wanted.
3. So EIC had to make up outstanding amounts to pay for 90% of
Chinese tea in actual silver currency, which led to a huge drain of
silver from Britain.
iv. How did British EIC solve the problem of imbalance of trade?
1. The British discovered a way to grow and produce opium cheaply
in large quantities, an addictive drug which became a perfect
trading commodity as it ensured and guaranteed constant
demand.
2. This then formed the “India-China trade”, as ships took the trade
route from India to transport opium and China to exchange for tea.
3. Because of this, the British needed a convenient stopover
mid-way through the journey.
4. Thus, Singapore's geographical location was ideal as she
was mid-way between India and China. She could be used as:
a. A port of call in the Malay Archipelago, protecting the
China trade.
b. A facility for British ships between India and China to
harbour, refit and refill, or wait for the monsoons for
sailing purposes.
Unit 3: From Unit 3 Reading Notes
b. Importance of Malay Archipelago Trade
i. Why is it important?
1. Its importance as a regional trading network that supported the
British India-China trade.
2. China didn’t want to waste their goods on British manufactured
goods, they wanted Straits produce like tin and pepper instead
3. So, the British EIC were in dire need of commodities that could be
traded in exchange for Chinese goods.
4. The Malay Archipelago served as a market for selling British
manufactured goods in exchange for Straits produce, which then
could be exchanged for Chinese goods.
5. So, the Malay Archipelago supported the China trade by
augmenting British goods for the Chinese market.
6. Archipelago traders would buy British goods and opium in
exchange for a wide variety of Straits produce, which the British
then sold to China and Europe.
ii. Loss of monopoly of the India trade in 1813
1. The monopoly allowed EIC to regulate the supply of British
imports to safeguard against an oversupply of British imports
(opium) and ensure price of goods would remain high.
2. However once monopoly of the India trade ended, other private
traders engaged in trade in the East.
3. So the British had to depress their prices, which led to a huge loss
of profits.
4. So they needed a new port situated in a suitable location to
capture potential new markets. Singapore was located in an
ideal location to capture new regional markets for
British-made goods.
2. Polictical Reasons
a. Anglo-Dutch Rivalry
i. The British and Dutch had wagged an ongoing commercial battle for two
centuries.
1. Initially, in the seventeenth century, Dutch gained the upper hand
as its command of two trade routes in the region exerted a virtual
monopoly of the profitable spice trade.
2. However, in the eighteenth century, Dutch fortunes changed as a
result of the Napoleonic Wars. The Dutch king sought refuge in
England after the French occupied Holland, so he decided to
transfer Dutch possessions temporarily to the British.
3. So, the British now had access to Dutch territories and were to
occupy them until the war was over, and now the situation turned
to their favour.
Unit 3: From Unit 3 Reading Notes
ii.The Dutch returned to the East, stronger as ever.
1. In 1815, the ideal situation for the British came to an end as the
Napoleonic Wars ended. So the British had to return the Dutch’s
possessions back. When the Dutch returned, they strengthened
their power and had a large fleet of warships, as well as a strong
army. This was when the Dutch enforced strict trading rules.
a. British ships could not trade with any Dutch ports (except
Batavia)
b. At Batavia, British traders were charged high fees and had
to pay heavy taxes on goods
c. All Asian trading boats had to fly a Dutch flag, and carry a
permit/“pass”
d. British could only with Dutch ports
2. As the Dutch exerted tighter control over the region, British
traders were in danger of being left out in the trade of the
East, creating an urgency for the British to establish a new
trading settlement in the East.
3. Strategic Reasons
a. Need for a third port
i. Ineffectiveness of Bencoolen and Penang
1. Bencoolen was too far away from trade routes (centre of trade in
the Archipelago), such a disappointment…
2. Penang was unsuitable as a naval base because it did not have
timber for ship-building and ship-repairing. It was also too far in
the North, unable to control the Straits of Malacca, or protect
British Ships, also too far from islands of the Malay Archipelago to
attract traders, so it also could not be a trading centre. Also, she
can be easily cut off by the Dutch of Malacca.
3. So the British were desperate for another port, so Penang
and this potential new port to be used as bases to protect
British shipping and trade. Thus, the search for a much more
suitable base was carried out.
ii. Need to Check for Dutch power
1. The Dutch were extending their trade monopoly to more areas, in
order to keep out British traders. Any area the Dutch occupied,
British ships and traders were shut out from those areas.
2. Raffles was opposed to the Dutch monopoly of trade, convinced
that the British had to break it.
3. The Dutch wanted to confine British trade Penang and
Bencoolen, and due to the ineffectiveness of these ports,
Raffles knew that he had to find a third port which could
command the southern entrance to the Straits of Malacca and
could protect the China trade and counter Dutch influence in
the region. Singapore.
Unit 3: From Unit 3 Reading Notes
II. Introduction: People and Events that Formed Colonial Singapore
1. Background information
a. Sir Stamford Raffles
i. His role in the EIC:
1. Knighted in 1817
2. Lieutenant-Governor of Bencoolen from 1818-1824
3. To search for a new settlement
ii. What he did to have the opportunity to search for a new port (Singapore)
1. As Malacca was about to be returned to the Dutch after the
Napoleonic Wars, EIC decided to destroy the city to prevent the
Dutch from threatening the British trade. However, after much
persuasion from Raffles, the Malacca’s destruction was stopped.
2. As Raffles returned to the East from Bencoolen (1818-1824),
Raffles was alarmed at the Dutch extension of power in the East.
He knew that it was necessary to break the Dutch monopoly in the
East and extend British influence in the region. He persuaded the
then Governor-General of India, Lord Hastings, to support him to
secure a new port.
3. Raffles was to select Singapore, give the port the foundation upon
which it built up its great entrepot trade
iii. Aftermath
1. His first wife died in Java, three out of his four children perished in
the unhealthy climate of Bencoolen.
2. When he returned to Britain, he weakened in health. The ship he
sailed in was destroyed in a fire, and most of his collection of
natural specimens and Malay manuscripts were lost.
3. Even in his retirement, EIC treated him meanly in money matters,
giving him little thanks for his great work. And 1826 Raffles died
suddenly on the eve of his forty-sixth birthday.
b. William Farquhar
i. His role in the EIC:
1. Cadet in the Madras Military Establishment in 1791
2. Ensign in the Corps of Madras Engineers in 1791
3. Lieutenant in 1793
4. Chief Engineer in 1795
ii. What he did to have the opportunity to search for a new port (Singapore)
1. When he returned to Britain, he received orders to join Raffles in
the search for a British trading port in the Johor-Riau archipelago,
due to his extensive knowledge of Malayan politics and culture.
Unit 3: From Unit 3 Reading Notes
2. The Expedition to Singapore
a. Raffles was determined to counter Dutch Influence
i. Hastings and Raffles had the same view, that British trade with China
must be protected, and that there was a need to check Dutch monopoly.
Hastings was hesitant, because there were strict instructions from the
British government not to antagonise the Dutch.
ii. After some sort of adventure, Raffles ordered the expedition to go to the
island of Singapore, and Raffles and Farquhar reached the island at 4pm
on 28 January 1819.
b. Events leading to the Provisional Treaty of 1819
i. Raffles found that Singapore had a good harbour and a wide river,
plentiful supply of good drinking water. Its geographical position on the
trade route to China was ideal, and it was near the East Indies. Since this
island was not occupied by the Dutch, Raffles felt that the British could
easily check the spread of the Dutch power in the Malay Archipelago, and
hence got preliminary agreement from Temenggong to allow a British
settlement and a fort.
ii. The temenggong was promised protection and an annual payment of
Sp$3000.
iii. However, Raffles knew that this treaty would not be enough, as there was
no legal basis for the new settlement unless he got permission from the
Sultan of Johore, but the Sultan was under Dutch and Bugis influence, so
Raffles knew he would never sign a treaty with the British
c. What Raffles did to Outwit the Dutch
i. As Tengku Long, the eldest son and heir after the Sultan died in 1812, did
not have a strong ally, and lived quietly at Bulang near Rhio, Raffles
decided to invite him to Singapore and recognized him as the rightful
Sultan of Johore.
ii. Raffles promised Tengku Long protection and financial assistance, which
he agreed to. Thus, the British settlement in Singapore was officially
established.
d. The treaty of 6 February 1819
i. Basically, the EIC had to pay money to the Sultan and Temenggong
annually, giving protection and support to them, as well as administer and
pay the cost of the port of Singapore.
ii. In return, they had to protect the British settlement against enemy attacks,
and the EIC was given permission to establish a settlement in the
southern part of Singapore
iii. After signing the treaty, Raffles left for Penang, and left Farquhar as the
first resident of Singapore, giving him general instructions in the
administration of the settlement.
Unit 3: From Unit 3 Reading Notes
3. Raffles’ Economic Policies (Raffles Contributions)***
a. Singapore as a Free Port: Question of survival
i. One of Raffles’ most important contributions, adopting the free port policy
for Singapore. For the first ten years, Singapore was the only free port in
the Malay Archipelago.
ii. Traders did not have to pay import or export duties, only opium and liquor
were taxed.
iii. This naturally attracted traders to come to Singapore, as they were able
to use the port facilities without charge.
iv. While Singapore had certain natural attributes, like her ideal geographical
location, mid-way between the Middle East, India and China, she had few
natural resources, with no products to attract traders.
v. However, Singapore was surrounded by rich lands. From a variety of
countries, came a variety of goods.
vi. Raffles realised that the lack of her own local products meant that
Singapore had to encourage trade by exempting tariffs on goods to attract
traders, thus Raffles administered Singapore as a free port, serving as an
entrepot port.
b. Singapore’s Free Trade Policy: Question of competition
i. To Raffles, free trade was the way to beat competition from Dutch ports,
as well as other rulers
ii. This was because when adopting the principle of free trade, Raffles made
sure that it was the first such port in the region, so that the policy had the
effect of attracting those traders around the region who were ready to
seize new opportunities.
iii. Although there were other free ports, none of them could compete with
Singapore, as they did not possess Singapore’s geographical
advantages. Free ports under the Dutch were also not successful as a
major portion of trade remained under the control of the government.
Additionally, by the time the other ports were established, merchants and
traders had invested a lot of capital in Singapore, and found no benefits to
move to another free port.
iv. The true meaning of free trade was the freedom to trade without
restrictions.
v. For example, Singapore did not enforce the British Navigation Laws,
which required all trade between British colonies to be carried in British
ships.
vi. The Anglo-American Conventions, which did not allow American ships to
trade at Singapore, were also not strictly enforced. As American goods,
such as firearms were popular among traders world wide, merchants at
Singapore enjoyed comparative freedom of trade.
Unit 3: From Unit 3 Reading Notes
4. Raffles’ Administrative Policies (Raffles Contributions)***
a. Raffles’ Town Plan
i. Raffles envisioned Singapore to have considerable magnitude and
importance, and as such, “an economical and proper allotment of the
ground intended to form the site of the principal town was an object of first
importance”. He also emphasised on having greenery to give the envision
of prosperity.
b. Administration of Justice
1. With population increasing rapidly, the British needed to enforce
law and order. Raffles appointed European merchants who were
assisted by Asian headmen to deal with minor cases, while the
Resident would deal with major cases. Ones where Malays were
involved, the Sultan and Temenggong would be consulted. A
police force was organised to ensure that law and order were
maintained.
5. William Farquhar Contributions***
a. Farquhar employed labourers to clear the land for a military base, also for traders
and immigrants who had arrived to settle.
b. Problems he faced throughout and what he did
i. There was a lack of food for new settlers
1. The people of Melaka heard about Singapore and sailed down in
boats loaded with chickens, ducks, fruits and other food, which
were sold at high prices
ii. Farquhar had to get people to come and trade at Singapore
1. Farquhar invited settlers from Melaka to come
2. He stationed a British official on St. John’s island, inviting passing
ships to stop in Singapore
iii. Violence, disorder, robbery, fighting and murder took place very often
within new settlers
1. Farquhar started a small police force, but there were few
policemen to keep law and order. (which led to administration of
justice, raffles’ administrative policies)
iv. There were rats and centipedes everywhere
1. Farquhar offered money for every rat and centipede killed, and his
campaign against these pests succeeded.
6. Fued between Raffles and Farquhar
a. Raffles instructed Farquhar to allocate specific areas for government use, trade
and settlement of the different communities.
b. However, Farquhar found it difficult to fulfil Raffles orders as the merchants and
settlers had their own preferences. Limited resources he was left with also did not
leave him in a good position to enforce colonial ideals - and survival of the port
was the most important thing to Farquhar.
c. Thus Farquhar allowed them to put up buildings and settlements they thought
were most suitable to fulfil their needs and requirements.
Unit 3: From Unit 3 Reading Notes
d. When Raffles returned to Singapore, he was unhappy with what Farquhar did.
Raffles and Farquhar had different views on planning and governing Singapore.
e. Lawlessness still ensued, there was no proper police force to keep law and order,
and too few officials in the government.
f. Raffles had to work out plans to undo what he saw as gross management from
the ideal vision he had for Singapore.
g. Raffles then persuaded Farquhar to retire, before making John Crawfurd the
second Resident of Singapore. Raffles also appointed a town planning
committee, reconstructing the town, and gave detailed instructions to the
committee. And finally, the town plan was drawn by Lieutenant Jackson. He laid
out Singapore’s first Botanical Gardens, and established the Singapore Free
School, known as Raffles Institution today. (Raffles’ Town Plan - Raffles’
Administrative Policies)
Unit 3: From Unit 3 Reading Notes
III. Events leading to the Anglo-Dutch Treaty of 1824
1. Opposition against the Founding of Singapore
a. The Dutch
i. They were angry and worried when Raffles tried to bring more land in
Sumatra under British rule, and thus objected violently to Raffles’
founding of Singapore
ii. The Dutch Governor-General at Batavia, Baron van der Capellan, claimed
that Singapore was under their influence, and thus demanded that the
British withdraw from Singapore, threatening the British government that
he would use force to do so.
b. Colonel Bannerman
i. He was unwilling to accept Raffles’ founding of Singapore, wanting the
EIC to give it up, as he was jealous of Raffles’ influence and success. He
also did not want to have a rival port for Penang
c. British Authorities
i. Raffles placed them in a difficult position with the Dutch government.
Britain needed the Netherlands as an ally in Europe, as any strong eny
could use the Netherlands as a base for attacking Britain. The British
government therefore did not lose the friendship of the Dutch, and the
Netherlands did not want to fight the British.
ii. Thus, Britain and the Netherlands decided to settle their rivalry, and
quarrels in the East peacefully.
d. “The Paper War”
i. As the British and Dutch were coming to an agreement over Singapore,
she was prospering rapidly, which made the British unwilling to give it up.
ii. Meanwhile, Raffles made another treaty with Sultan Hussein and
Temenggong in 1823, to give up all rights to control over the trade of
Singapore to the British, and monthly pensions in return.
iii. The British realised the importance of holding onto Singapore, as it was a
profitable port of call for their China trade. EIC was finally able to get a
share of the trade in the East, and the Dutch could not prove that
Singapore belonged to them. So the British decided not to give up
Singapore.
iv. And so, Britain and the Netherlands decided to end their rivalry, signing
the Anglo-Dutch Treaty.
2. Clauses
a. Territorial Clauses
i. The British and Dutch agreed that if the other were to give up any
territory, the other should be allowed to occupy it.
b. Commercial Clauses
i. Both countries could trade freely, and had equal trading rights.
ii. The Dutch were allowed to keep the monopoly of the spice trade in the
Moluccas.
Unit 3: From Unit 3 Reading Notes
iii.
Neither country can make a treaty with other rulers which will damage the
other’s trade.
3. Consequences of Anglo-Dutch Treaty
a. The treaty divided the Malay Archipelago into two spheres of influence. Islands of
the Archipelago were under Dutch influence, while Singapore and Malay
Peninsula were under British influence.
b. Friendship was Strengthened
i. The treaty strengthened friendship between the two countries, and
lessened rivalry and hostility between them in the East. But Britain could
no longer hope to set up a large empire in the Malay Archipelago,
however they could now develop Singapore without interference from the
Dutch.
c. Bencoolen was Exchanged for Malacca
i. The trade was practically useless for the British as 1. Bencoolen was not
a suitable trading base anyways, but 2. Malacca had lost its commercial
and strategic importance, and was now a mainly collecting centre of local
produce for Penang and Singapore
ii. However, the British now could protect their trade between India and
China, no longer fearing Dutch interference as they had three settlements
along the west coast.
iii. The Dutch also benefited greatly. They had a wide area to spread their
influence, increasing their trade.
d. Equal Trading Rights
i. They could trade freely in the East Indies, however the Dutch continued to
place heavy taxes on British ships, trying to ruin British trade in the East
Indies.
e. End of Johor Empire
i. The Johor Empire was now divided into two parts. Singapore became a
British territory. Johor, on the mainland, came within British influence. The
rulers were all over the place, and never again could Johor Sultan reunite
the territories of the former Johor Empire.
f. 2 Spheres of Influence
i. The treaty divided the Malay Archipelago into the British and Dutch
influence, which later brought about great differences in the political and
economic development of the Malay Peninsula and the islands of the
Malay Archipelago.

~The End of Unit 3~