SociaI and Ixonomic Hislory, IinaI Iaer AIexander

Hirner


22.08.14 1
!"#$ &' ()* +,#-&. /
0&1 +234,*(2&. 2. 5#.(&.63 78"2.- 8.9*,:2.*9
5)2.#3 !8;,*:#4$
<!"#$ & !'()

Painting by William Baniel of the Euiopean factoiies in 18uS, ietiieveu fiom
http:uploau.wikimeuia.oigwikipeuiacommons77uview_of_Canton_factoiies_2.jpg



!"#$ &'&"# ()# *+,-"# ."$".-"# /012
3)4#." 5#67 1890
:";-4#"#.7 <=<> ?6@ ?ABC>A 36

!=>+?@=
@#:*A B"*C#.9*, 0D7@?7
0&:* >.2E*,32($A >.2E*,32($ &' F832.*33 #.9
?4&.&:243G H2*..#
D+A IJKLKKM


SociaI and Ixonomic Hislory, IinaI Iaer AIexander
Hirner


22.08.14 2
IN D.(,&984(2&. #.9 7*3*#,4) O8*3(2&.

Il vas a cIash of earIy modern economic and oIilicaI suer overs and a cIash
of cuIlure. The lvo emires, China and rilain reIied uon each olher
deseraleIy and basic needs of domeslic eoIe fueIed an ever deeening lrade
reIalionshi. Ior mosl of ils hislory, China is renovn for an uncomromising
invard orienlalion. rilain hovever, kel searching for nev oorlunilies lo
exand and recognized lhem in lhe far easl. AIready enlrenched in Asia via lhe
Iasl India Comany, lhey ushed for China vhich by 1812, vas comrised of
aboul 360 miIIion inhabilanls under lhe ruIe of a cenlraI courl and endoved
vilh a Ielhora of resources
1
. InduslriaIizing rilain's craving resuIled from lhe
fascinalion vilh China's cuIlure and hence her cuIluraI goods. The mosl nolabIe
being lea vhere il accounled for aboul haIf lhe consumlion of lhe veslern
vorId and used aboul 1% of ils GDI lo buy lhis subIime herb from
2
.
Whal slarled vilh an honesl admiralion for China, lhough evenluaIIy became
an oium addiclion rogram run by greedy merchanls
3
. As nobIe as lhe
oinion vas aboul China's cuIlure, hiIosohy and goods, as reckIess vas lhe
execulion of gelling a fool inlo China for rofilabIe lrade.
Hovever, one can aIvays ul il lhe olher vay round as veII, and say lhe
Chinese vere urosefuIIy hooking lhe rils on lea firsl in order lo coIIecl lheir
recious siIver buIIions vhich had lo be IaboriousIy rocured from aII over lhe
vorId. So lo bIame eilher side lo be IiabIe for lhe onsel of lhe Oium Wars is
easy. ul vhal is reaIIy slriking, is hov a confIicl emanaling from a
comaraliveIy liny fraclion of Iand, sliII heaviIy reslricled in lrade and generaI
conducl vilh foreigners svel avay lhe suremacy of an enlire emire. Iven
more so, if lo consider lhal il vas of highesl riorily for lhe Qings lo fighl
delerioralion oium broughl lo lheir eoIe, lhough robabIy loo Iale and
aarenlIy ineffeclive. In lhe course of Chinese hislory, she used lo slrive for
seIf-sufficiency, roleclion againsl foreign infIuence and lrade onIy lo lhe exlenl
in vhich il is beneficiary lo lhe emire and subsequenlIy ils cenlraI aulhorilies.
OnIy afler giving in |usl a lad bil, vilh lhe eslabIishmenl of lhe Canlon lrade
syslem, couId China become a viclim for oulsiders. In relrosecl, Chinese
slalesmen assessed lhal lhrough lhe hoIe in her mosl saIienl orl, !"#$ &'#!
&'( )"!$ *+, -" -&$ )&./0#$1 "2 3'1 -&'1 45 -&$ 2/""0( "2 -&$ 6$//"7 8.9$#
4
.
Il is lherefore a fruilfuI underlaking lo exIore lhe queslion of vhy lhe Qing
Dynasly Iosl ils sovereignly lo oulside forces vilh lhe focaI oinl of anaIysis

1 W. W. G. (1844), . 146, . 131
2
Sargenl (1907), . 53: Taxalion rose sleadiIy over lhe course of quanlialive exansion as veII,
shoving lhe concern of lhe rilish governmenl vilh ramanl lea demand.
3
onsaI (1900), . 415: He, a Chrislian missionary assess lhal Chinese, vilh good reasons
vieved Iarge arls of lhe Weslerners as being redalory voIves.
4
onsaI (1900), . 423

SociaI and Ixonomic Hislory, IinaI Iaer AIexander
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22.08.14 3
being Canlon. To rovide an exIanalion for lhe aroximaleIy 80 year Iong
rocess of subversion vhich uIlimaleIy Ied lo lhe oium var and rilain's
annexalion, a lhorough underslanding of vhal haened on lhe very soiI of
vhere merchanls, oosing mindsels and ecuniary inleresls mel is necessary.
Iirsl, lhe molivalion of China's barred dovn and arguabIy arroganl foreign
oIicy shaII be eIucidaled. Then, a cIoser Iook viII reveaI lhe inner forces and
ma|or Iayers of Canlon vho vere uIlimaleIy abIe lo undermine lhe Ian for
indefinile sueriorily of lhe imeriaI courl.
PN B. #E*,32&. &' #"" ()2.-3 '&,*2-.

The invasion of lhe Manchu's in 1644 ended vhal vas caIIed lhe Ming Dynasly.
And as lhe MongoIs before lhem, lhey vere adel in varfare and keen aboul
raiding lhroughoul lhe soulh of China lo harness ils vasl roduclive caacily.
ul vhal lhey Iacked vas a roficiency in governance, so lhe besl lhing lhey
couId do lo run lhe counlry vas keeing adminislralive slruclures as lhey
vere. This Ied lo a duaI syslem of aulocralic ruIing, cenlred in lhe norlhern
cailaI and in lo a cerlain exlenl aulonomous IocaI governmenls in lhe
rovinces
5
. In lhese rovinces, lhe ruIe of IocaI Iav sellIed disules and IocaI
democralic eIemenls revaiIed during lhe Manchu's conquesl. In facl, lhe
imeriaI courl's aoinlmenls for officiaI osls vilh Manchus have never
exceeded one fiflh and much Iess so for minor osls vhiIe lhe resl adhered lo
IocaI Chinese herilage.
Whal lhese lvo inslilulions, lhe cenlraI courl and IocaI governmenls lhough
had in common vas a dee beIief in Chinese cuIlure and re|eclion of any
foreign infIuence. As an indicalive examIe of lhe imeriaI courl's animosily
are ils forlunaleIy veII documenled reaclions lo lhe Macarlney embassy in
1792. Imeror QianIong sveeingIy louled aII lhe lhings lhe embassy
resenled lo lhem as being mediocre and unusefuI. And nol onIy lheir goods
vere of Iov esleem lo lhe Imeror, bul aIso lheir cuIlure and reIigion.
Trealmenl of lhe rils vilh regards lo lighler lrade inlegralion vas in effecl no
differenl lhan lo any olher derogalory barbarians from China's lribulary
saleIIiles
6
.
Wilh lhis unfavourabIe condilions of young Qing's China in mind, lhe queslion
remains of vhy Canlon firsl emerged, lhrived and evenluaIIy broke lhrough
China's innermosl commilmenls.

5
Morse (1900), . 1
6
QianIong, Ieller lo George III (1792)

SociaI and Ixonomic Hislory, IinaI Iaer AIexander
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22.08.14 4
QN R&E*,.#.4* &' 5)2.# #.9 ()* !(,8--"* '&, #. &;*. 5#.(&.

The reIalionshi of lhe imeriaI courl vilh ils rovinces is of high reIevance lo
ansver lhis queslion. The cenlraI aulhorily enlerlained a nelvork of conlroIs
vilh lhe governmenl of lhe rovinces. The lies vere of ersonaI and
bureaucralic nalure and quile racliced. As menlioned earIier, lhe federaI
syslem vas moslIy inheriled from lhe Ming Dynasly bul augmenled lo fil lhe
currenl needs of lhe Manchu ruIers. DireclIy undernealh lhe emeror, beIieved
lo be lhe conneclion of lhe heavenIy and lhe earlh, vere his array of minislers.
This firsl IeveI of hierarchy vas resonsibIe for roviding an excIusive Iink lo
lhe rovinciaI governmenls. Though lhe decisions and edicls of lhe emeror
ruIed sureme over any olher form of IegisIalion, lhe highesl body vas more
knovn for ils reIuclance lhan ro-aclive design of oIicies. UsuaIIy, inilialives
emerged from lhe rovince aulhorilies vhere lhe emeror and his minislers
vere conlenl vilh eilher decIining or aroving lhese inilialives.
ChanneIIing aII lhe communicalion soIeIy lhrough his minislers aIso meanl a
Iack of check and baIances al lhis IeveI of governance. Therefore coIIuding vilh
minislers osed a good veclor of increasing lhe aulonomy of so incIined
rovinciaI ruIers. The highesl officiaI resonsibIe for a rovince vas eilher a
governor-generaI if he oversees more lhan one rovince, and/or a governor
vho vas generaIIy addressed by foreigners as lhe viceroy. Nexl lo lhe viceroy,
severaI accomanying osilions vere aoinled, vilh lvo being of significanl
over. A rovinciaI lreasurer, in charge of finances and a rovinciaI |udge
resonsibIe lo soIve criminaI issues. AddilionaIIy, lhe rovinciaI lreasurer vas
lhe head of lhe civiI service and emovered lo disense lhe rovinciaI
governmenl uon his behaIf. The rovinciaI |udge aIso handIed offences of
rovinciaI officiaIs. ConsequenlIy lhose lvo osilions, if acling according lo
lheir dulies made u for a sohislicaled syslem of checks and baIances. To
ensure lhe much needed IoyaIly, ei|ing in relurn oled for absoIule conlroI in
seIecling lhese officiaIs. Iurlhermore, officiaI's lenure vas Iimiled in lime as in
origin. GeneraIIy, no viceroy vas aIIoved lo govern lhe rovince he vas born
in. AII lhis shouId conlribule lo lhe indeendence and inlegrily of lhe IocaI
governmenl
7
.
Irom lhal one can see lhe generaI IeveI of aulonomy in lhe rovinces and
Iikevise lhe delachmenl of lhe courl from issues haening lhere. In raclice,
even foreign affairs vere handed dovn as *+, -&$ .!:$#.'/ ;"9$#1!$1- (-#<;;/$0
&'#0 -" =$$: )/$'# "2 '// )"1-')- 7.-& 2"#$.;1 '22'.#(> '10 #$?<.#$0 -&'- -&$.# 0.()<((."1
'10 -&$ 0$).(."1 "2 -&$! (&"</0 4$ /$2- '4("/<-$/5 -" -&$ "22.).'/( .1 -&$ :#"9.1)$(@A
B

And such vas hov Canlon and ils seciaI roIe came inlo being.

7
Morse (1900), . 4
8
Morse (1900), . 9

SociaI and Ixonomic Hislory, IinaI Iaer AIexander
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22.08.14 5

eginning in lhe 17
lh
cenlury lhe Iasl India Comany lried lo gel a foolhoId lo
romising Iaces in lhe soulh of China. Il faiIed once vilh Taivan and Xiamen,
conlended vilh lhe Dulch in Macao and on lhe sea and above aII vilh greedy,
dismissive and seIf-enriching merchanls al any orl lhey iIoled lo. The
allemls al Canlon vere of no excelion. Ioreigners vere kel in bay by lhe
mighly vaIIs, vhere goods couId onIy be lraded vilh ulmosl submissiveness
and lo lhe Iikings of lhe cily ruIers
9
. Laler allemls lried lo slrenglhen rilish
infIuence and in 1715 lhey secured a more or Iess slabIe oulosl in Canlon
vhere rilish ersonneI vas slalioned. This vas lhe firsl so caIIed faclory and
marked lhe beginning of lhe Canlon era. Hovever, chief officiaIs conlinued,
desile romised olhervise, lo imose arbilrary exaclions and confined lrade lo
a handfuI of Chinese medialors
10
. argaining over cIearIy vas in lhe hand of
lhe reseclive Iong-eslabIished IocaIs. Taking aII lhese burdens inlo accounl, il
is remarkabIe hov lrade belveen lhe lvo aImosl anlagonisl arlies couId ever
rise lo IeveIs changing lhe fale of vhoIe China.
Ior one, desile Qing's generaI adverse allilude lovard foreign goods, il sav
lrade in lerms monelary benefils. In facl, harvesling lax revenue from lhe
rovinces vas a means lo survive for lhe cenlraI aulhorily. And as Iong as lhe
money kel fIoving, lhey did nol bolher loo much aboul ils sources. AIlhough,
il al Ieasl afforded lo have onIy one Iace lo be concerned vilh aII lhe
veslerners lrade, nameIy Canlon from 1757 on. In any case, Canlon vas cIearIy
favourabIe lo Macao in lerms of geograhy and lhe handIing of concerns vilh
foreigners such as conlainmenl and accommodalion
11
. y hindsighl, lhis
concenlralion mighl aIso have conlribuled lo lhe efficiency and lherefore
grovlh of lhe vhoIe endeavour. SecondIy, lhe margins made vere |usl loo
romising and couId more lhan comensale lhe slee lransaclion cosls vhiIe al
lhe same lime salisfying aII lhe slakehoIders. rilain had siIver buIIions in Iarge
quanlilies vhich lhe Chinese aIone couId nol rocure since lhey did nol have
access lo siIver exorlers of lhis lime. On lhe olher hand, Chinese had lhe goods
vhich lhriving rilish consumers vere crazy for: MainIy lea, orceIain and siIk.
Though, lhe Iasl India Comany lried lo subslilule lhe drain of siIver buIIions
vilh vooIIens and olher exorl merchandise lhey onIy couId so vilh incurring
a Ioss. The main rofils vere made al home vilh lea accounling lo haIf of her
revenue. Imorl measured in quanlily grev 140 foId from 1712 lo 1812 and on
average, lhe comany made a yearIy rofil of a miIIion ound slerIing er year
from 1815 onvards. Much lo lhe deIighl of lhe lax grossing rilish governmenl
as veII
12
.

9
onsaI (1900), . 416
10
Sargenl (1907), . 7 & Morse (1900), . 52
11
Dyke (2005), . 7
12
Sargenl (1907), . 49

SociaI and Ixonomic Hislory, IinaI Iaer AIexander
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22.08.14 6
WhiIe confinemenl of lhe foreigners never gol Ioose, lhe sohislicalion of lrade
melhods and seciaIisls invoIved sleadiIy increased. Those medialors
menlioned above and in charge lo excIusiveIy barler vilh lhe foreigners vere
knovn as lhe Hongs and organized in a guiId of aboul named lhe Co-Hong.
earing lhe burden of any misbehaviours of foreigners and lrade disules, a
fair share of lhe rofils vere ockeled by lhem. Due lo lhis incenlive and lheir
simiIarIy eager and slabIe arlner Iasl India Comany, convenlions lo faciIilale
commerce such as fulure rice conlracls and a credil syslem evoIved
13
.
The cruciaI Iink lo lhe imeriaI courl in belveen il lhe Hongs vas lhe Hoo of
Canlon. This osilion, |usl as olher officiaIs, vas aoinled by lhe imeriaI
courl and byassed lhe ordinary laxalion syslem managed by lhe rovinciaI
lreasurer. He vas in charge lo coIIecl aII lhe dulies and by doing so, caler lo his
ovn needs as veII. Indoved vilh lhis resonsibiIily meanl a high slake for lhe
individuaI and for lhe imeriaI courl. Thal is vhy his inlended lenure Iasled for
a maximum of conseculive lhree years Ius lhe conslrainl of being of lhe
Manchu race. The saying venl lhal C.- -""= 1$- -&$ :#"2.- "2 -&$ 2.#(- 5$'# "2 &.(
-$1<#$ -" "4-'.1 &.( "22.)$> "2 -&$ ($)"10 5$'# -" =$$: .-> '10 "2 -&$ -&.#0 5$'# -" 0#": .-
'10 :#"9.0$ 2"# &.!($/2@A
14
The roIe of lhe Hoo and Canlon's viceroy venl
hand in hand. Whal lhey differed in vas lhal lhe Hoo rimariIy cared aboul
commerciaI issues and lhe viceroy aboul Iav and order
15
. SimiIarIy lhough,
lhey bolh made a forlune in channeIIing rofils lo lhemseIves, lheir
beneficiaries and uIlimaleIy lo lhe imeriaI courl.
Wilh lhis arrangemenl of mallers, eoIe and inleresl one couId assume lhal
commerce fIourished vilh no end in sighl. The foreign merchanls made rofils
and consumers al home hay, lhe Co-Hong amassed veaIlh and Iubricaled
commerce by increasingIy crafly micro oIicies vilh lheir foreign arlners, lhe
rovinciaI governmenl scooed rofils and vere abIe lo mainlain a credibIe
and IaudabIe oslure in fronl of lhe minislers and lhe Imeror. And give or
lake some hiccus Iike a credil defauIl of lhe Hongs and lhe occasionaI crime, il
did. Hovever, lvo inevilabIe lrends and one faciIilaling faclor vilhin lhe
syslem broughl lhe Canlon syslem oul of vhack and evenluaIIy lo ils end.
LN =)* 3&8,2.- &' 5#.(&.

One of lhe underIying lrends in lhe beginning of lhe 19
lh
cenlury has been lhe
ush for rivalizalion and lherefore decenlraIizalion of lhe lrade agenls of
rilain. Insired and somevhal |eaIousIy Iooking lovards lhe vay lhe
Americans caughl u in voIume and success in Canlon, Iobbying vilh lhe UK

13
Dyke (2005), . 5
14
Morse (1900), . 34
15
Dyke (2011), . 8

SociaI and Ixonomic Hislory, IinaI Iaer AIexander
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22.08.14 7
evenluaIIy broughl lhe coveled change. The Chinese merchanls vere sIighlIy
disconlenl vilh lhis deveIomenl lhough, as il meanl Iess foreseeabIe business,
a disersed IiabiIily in case of misdeeds and lherefore grealer efforls lo manage
lheir affairs. ul even more imorlanlIy, il aIso meanl higher agiIily of lhe
foreign merchanls as a vhoIe
16
.
Al lhis oinl il is safe lo assume, lhal a fIeel of unIeashed rivaleers added lo
lhe reckIessness of hov lo soIve a robIem aggravaling for lhe Iongesl lime: a
ramanl lrade imbaIance in favour of China. The rilish governmenl vas very
veII avare of lhe robIem and keen lo counlerbaIance il. As menlioned before,
lhe Iasl India Comany on lried lheir besl lo nol deIele rilish buIIions, bul
olher merchandise such as vooIIen |usl didn'l achieve a salisfying rice IeveI
vilh lhe Chinese. Indeed, lhe onIy roducl lhe rilish had access lo and vhich
vas abIe lo meel lhis crileria vas oium. Hence, lhe second lrend of lhe earIy
1800s, an ever increasing ressure lo imorl oium inlo China came inlo Iay.
Whereas lhe rilish merchanls vere uniled by lhe nev oorlunily, China's
slance as a vhoIe remained conlradiclory. To undersland vhy and in vhich
vay, ve musl again Iook al lhe reIalionshi of lhe rovinciaI governmenl vilh
lhe sureme courl under lhese nev circumslances. The highesl ob|eclive for lhe
chief officiaIs in Canlon vas lo reserve harmony vilhin lheir rovince and in
belveen lhem and lhe imeriaI courl. This necessariIy meanl lo ay lhe
imeriaI courl lhe amounl of laxes il $D:$)-$0. Il did 1"- necessariIy mean lo
fuIIy comIy vilh lhe edicls enacled by ei|ing in order lo reach lhis goaI. I.g.
in conlracls forged belveen foreign merchanls and Hongs and olher auxiIiary
figures, conlracls frequenlIy vioIaled lhe ideas of ei|ing in lhal lhey incIuded
agreemenls aboul conlraband merchandise such as oium and unveIcome
arrangemenls aboul crediling lrade. ShouId a disule arise vhich needed
sellIemenl vilh lhe higher echeIons, lhe offending eIemenls vere deIiberaleIy
fiIlered by Iinguisls in a vay lo make lo lhem aear IegaI
17
. These lricks sureIy
conlribuled lo lhe grovlh in lrade bul aIso obfuscaled imorlanl evenls from
lhe Imeror. AII lhis sIack in lhe Iover echeIons grev over lime because of
harder lo manage roorlion of foreign lraders vs. a slagnanl amounl of Hongs
and lheir subordinale ersonneI, groving aulonomy of lhe Hongs and generaI
shifl lo emhasize commerciaI goaIs inslead of comIiance. IvenluaIIy, lhis vas
aIso refIecled in lhe behaviour of lhe Hoo lovards ei|ing.
Since fuIfiIIing lhe budgel of laxes vas lhe main ob|eclive monilored by lhe
imeriaI courl, lhe Hoo vas knovn lo give Ieevay lo iIIicil lrade in order lo
gain furlher revenue
18
. Al Iasl, income for lhe rilish merchanls lhrough
smuggIing oium aIIoved lhem lo urchase more lea lhan if smuggIing vas

16
Morse (1900), . 85-88
17
Dyke (2011), . 31
18
Dyke (2005), . 174

SociaI and Ixonomic Hislory, IinaI Iaer AIexander
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22.08.14 8
imeded. The facl lhal oium lrade fIourished has even been made ubIic in
IocaI nevsaers, before il reached lhe cenlraI aulhorily lo lhe fuII exlenl. This
unforlunale mix of incenlives made il imossibIe for lhe Imeror lo see lhe
chaIIenges ahead and engage in limeIy revenlive measures. Iven lhough
smuggIing in isoIalion vouId nol have broughl lhe Canlon Syslem dovn, lhe
oor reaclion lo il did. Al lhis lime, senlimenls againsl lhe Iimils of being lide lo
lhe Hongs of conlinuousIy slrenglhening foreign merchanls became more and
more serious
19
. And inslead of recognizing lhal bargaining over had Iong ago
changed in favour of foreigners, lhe Imeror Iaunched a last uespeiate attempt
to enfoice the euict against opium
2u
. Be seizeu anu uestioyeu a shipment of opium,
which can be seen as the conflagiant event foi the Biitish to wielu theii aims
against Canton, anu against a system which they iegaiueu as in uiie neeu foi a
iauical change.
KN 5&.4"832&.

Among the vaiious stakeholueis meeting at Canton anu theii uiffeiing inteiests, it
was shown how the autonomous gioups of Canton aie ielevant in stiinging all
events togethei. Without the inteimeuiaiy iole of the Bongs anu the piovincial
goveinment theie woulu have been no such vast business foi the foieign
meichants, let alone the uetiimental spieau of opium. Anu without theii
emancipation fiom the celestial couit on the basis of ill uefineu incentives anu a
missing intelligence appaiatus, sufficient awaieness to ieassess the Canton system
shoulu have been possible. Naybe it woulu have spaieu the Qing Bynasty fiom its
uemise anu fiom China's self coineu teim of the centuiy of humiliation. Looking at
China's feueial ieality touay anu theii ielentless fight against coiiupt authoiities
with uiaconic punishments, leaus to anothei inteiesting conclusion. Piobably they
leaint fiom theii histoiy anu uon't want to iepeat pievious mistakes.



19
Malson (1836), . 75
20
Sargenl (1907) . 58 & Morse (1900), . 172

SociaI and Ixonomic Hislory, IinaI Iaer AIexander
Hirner


22.08.14 9
LN F2S"2&-,#;)$

Chan, K. S. (2008). Foreign Trade, Commercial Policies and the Political Economy of the Song and Ming
Dynasties of China. Australian Economic History Review, 48(1), 6890. doi:10.1111/j.1467-
8446.2007.00224.x
Dyke, P. A. Van. (2007). The Canton Trade: Life and Enterprise on the China Coast, 1700-1845 (p. 336).
Hong Kong Univ Press. Retrieved from http://www.amazon.com/The-Canton-Trade-Enterprise-
1700-1845/dp/9622098282
Dyke, P. A. Van. (2011). Merchants of Canton and Macao: Politics and Strategies in Eighteenth-Century
Chinese Trade (p. 672). Hong Kong University Press. Retrieved from
http://www.amazon.com/Merchants-Canton-Macao-Strategies-Eighteenth-Century/dp/988802891X
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