Chapter 2 :How did Singapore become a British Trading post ?

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Chapter 2 :How did Singapore become a British Trading post ? by Mind Map: Chapter 2 :How did Singapore become a British Trading post ?

1. Importance of the India - China trade

1.1. Before 19+h century : British East India Company (EIC)had limited presence in SEA

1.2. Late 18th century:much of India was under the EIC ‘S control

1.3. Trade between India and China was a lucrative (can earn a lot of money)=major source of income for EIC

1.4. Items traded : Cotton,Opium(India),silk,tea,porcelain (China)

1.5. British needed control of Straits of Melaka and waters around Singapore to protect India-China Trade (cause there were many dangerous pirates attacks so there must be merchandise ships to protect their goods)

2. Interest in the Spice Trade (Not many countries had it )

2.1. Spices had many uses

2.2. For example:cooking,medical purposes and preserving food.=extremely valuable in Europe =high demand

2.3. Due to high demand,prices of spices rose.

2.4. EIC wanted a share in the flourishing spice trade in SEA.

2.5. European powers competed for control over the spice trade.

3. Problem faced by the British EIC in SEA

3.1. 1)Dutch control of the Spice trade

3.1.1. Dutch East India Company (VOC)had monopoly in trade of cloves , mace and nutmeg .

3.1.2. When Dutch took over control of Melaka in 1641, they shifted the main trade routes to the Sunday Straits.

3.1.3. Dutch ports such as Batavia became main trading ports in SEA replacing Melaka.

3.1.4. Dutch were the main European power in the Malaya archipelago.They controlled a large part of the region including Java and Melaka (Malacca)

3.1.5. Dutch restricted the British and other Europeans to trade only at Batavia in Java .

3.1.6. British traders were charged high fees using the port and had to pay higher taxes.

3.2. 2) Unsuitability of existing British ports

3.2.1. British had two trading ports .

3.2.1.1. Penang

3.2.1.1.1. Penang was too far north .Could not protect British ships

3.2.1.2. Bencoolen

3.2.1.2.1. Bencoolen was on the ‘wrong’ side of Sumatra and not along the main trading route between India and China .

3.2.2. Using stopovers along India-China Trade route for refueling or repairs

3.2.3. However, both ports were unsuitable for trading.

3.2.4. Melaka and Java could cut off the valuable trade between Penang and Bencoolen

3.3. 3) The importance of India - China trade

3.3.1. Britain had already developed commerce with China,India and the Malay Archipelago.

3.3.2. Britain ‘s trade with China in the early part of the 19th century become very lucrative

3.3.3. Trading settlements were needed for ships to stopover to replenish their supplies on their journey between India and China.

3.4. 4) Suitability of Singapore

3.4.1. What made Singapore an ideal trading port ?

3.4.2. Several qualities that made Singapore an ideal trading port:

3.4.3. A natural sheltered harbor

3.4.4. Good supply of drinking water

3.4.5. Strategic location at the southern tip of the Straits of Melaka -could be the halfway port between India and China.

4. How did the British establish Trading Post in Singapore?

4.1. Background

4.2. Raffles and Farquhar met with the local chief, Temenggong Abdul Rahman to set up a trading post in Singapore.

4.3. The Temenggong however did not have the authority to grant permission to the EIC as Singapore was part of Johor-Riau. Only the Sultan of Johor-Riau could have permission.

4.4. But Johor-Riau was a vassal of the Dutch.

5. Process to developing Singapore as a nation

5.1. 1) Succession Dispute

5.1.1. The late Sultan of Johor-Riau Sultanate, Sultan Mahmud Shah passed away without naming a heir.

5.1.2. Tenguku Hussein the older brother was away in Pahang for his marriage

5.1.3. The Bugis chiefs decided to appoint his younger brother Tengku Abdul Rahman as the new Sultan instead.

5.1.4. Raffles learnt about this and invited Tengku Hussein to Singapore,promising him p protection and financial assistance.

5.1.5. Tengku Hussein agreed as he knew British support would increases his power in the region.

5.1.6. 6th Feb 1819,Raffles recognized Tengku Hussein as the rightful Sultan and signed an agreement with him and Temenggong.

5.1.7. The agreement allowed the British to set up a trading post in Singapore in return for an annual payment, protection and support for the Sultan and the Temenggong.

5.2. 2) Dutch and British responses

5.2.1. Dutch

5.2.1.1. Angry and contested Raffles actions

5.2.1.2. Clamied that Singapore belonged to them as it was part of the Johor-Riau which was under the Dutch influence

5.2.2. British

5.2.2.1. Angry with Raffles as his actions threatened their friendship with the Dutch .

5.2.3. However,Lord Hasting and the British traders convinced the British government in London of the need to retain Singapore for the protection and expansion of British trade in the East .

5.3. 3) Resolution of conflict

5.3.1. Despite tensions between Dutch and British, neither declared war .

5.3.2. British

5.3.2.1. Due to European wars in 1789 and 1815, they needed the Dutch as an ally against future threats.

5.3.3. Dutch

5.3.3.1. Wars in European disrupted their trade and shipping which led to bankruptcy.

5.3.4. Had borrowed heavily from the British

5.3.5. Did not want economy to be negatively affected by more wars

5.3.6. Anglo-Dutch Treaty ( a agreement with terms and conditions)1829:

5.3.6.1. Signed to settle their disputes

5.3.6.2. Malay Peninsula and East Indies divided into two spheres of influence

5.3.6.3. Dutch transferred Melaka to British

5.3.6.3.1. Dutch sphere :

5.3.6.3.2. Sumatra and all islands south of the straits of Singapore

5.3.6.4. British transferred Bencoolen to Dutch in return

5.3.6.4.1. British sphere :

5.3.6.4.2. Penang , Melaka and Singapore

5.4. 4) 1824 Treaty of Friendship and Alliance

5.4.1. Treaty on 6th Feb 1819 :

5.4.1.1. British only had permission to build a trading post in the southern part of Singapore.

5.4.1.2. Did not have control of Singapore.

5.4.2. 2nd August 1824:

5.4.2.1. Dr John Crawford , second resident of Singapore signed a treaty with Sultan Hussein.

5.4.2.2. British get control of the whole island of Singapore.

5.4.2.3. Sultan Hussein and the Temenggong get larger sum of money in return.

6. What did the British do to develop Singapore as a settlement between 1819 and 1826 ?

6.1. 1) Polices / measures of Major William Farquhar , first resident of Singapore

6.1.1. Set up defence positions at Singapore River and Government Hill which the help of 100 sepoys due to fear of Dutch attack to enforce their claims over Singapore a free port

6.1.2. Place a British official on St John island to inform traders of the new settlement and its free port .

6.1.3. By 1823, many traders as well as laborers from Melaka were attracted to Singapore

6.1.4. To raise funds for the smooth running of Singapore,Farquhar went against Raffles’ order and sold licenses for gambling,sale of opium and liquor.

6.1.5. With the funds , Farquhar set up a police force.

6.2. 2)Policies/measures of Sir Stamford Raffles

6.2.1. 18-1824: Raffles based in Bencoolen, only visited Singapore 3 times

6.2.2. During his third and final visit, he dismissed Farquhar due to unhappiness over the way he developed Singapore .

6.2.3. Raffles took over and designed the Singapore Town Plan .

6.2.4. Allocated areas to the respective ethnic groups to find out which areas were allocated to the different groups.

6.2.4.1. Chinatown: Allocated to Chinese community

6.2.4.2. Chulia Kampong : Allocated to Indian trading community

6.2.4.3. Commercial Square: Area for trade activities

6.2.4.4. Kampong glam : Allocated to Malays , Bugis and Arabs.

6.2.5. Shut down gambling dens which he deemed as harmful to the population.

6.3. 3) Policies / measures by Dr John Crawford , second resident of Singapore

6.3.1. Reintroduced licenses for gambling and sale of opium

6.3.2. Profits earned were used to ensure the smooth running of Singapore.

6.3.3. Continued to maintain free trade

6.3.4. Set up the first newspaper in Singapore and introduced street lighting

6.3.5. Signed the Treaty of Friendship and Alliance of 1824

7. Conclusion

7.1. British established a trading post in Singapore in 1819 after a long period where there was little trade or economic activity.

7.2. They overcome a number of challenges in doing that and finally resolved the issue by signing the 1824 Anglo- Dutch Treaty.

7.3. Focused on developing Singapore as a trading port.

7.4. 1826: Grouped Singapore with Penang and Melaka to the straits settlement