Page 228 - Merchants and Mandarins China Trade Era

214.

The East India Company's regulation of Indian opium precluded

any competition in the opium market for American imports from

Smyrna. In 1800, when Company Directors decided to put the

transport of Bengal opium into the hands of private traders,

they also prohibited those traders from dealing in any opium

not produced by the Company. Since the Company simultaneously

banned opium on its own ships, no British traders could handle

. 10
� k' h opium. Consequently, American merchants had the
1ur is
market to themselves, and they exploited their advantage.

By June 1807, the East India Company's Select Committee

at Canton complained to the Court of Directors in London about

the infilitration of the Americans. The Select Committee's

hands were tied, however, because of the Chinese prohibition

on the importation of opium. Any attempt to force the Ameri­

cans out of the trade would necessarily call attention to

English involvement. In response Chinese officials would

have to enforce the Imperial edicts vigorously, and, according

to the Select Committee, "thus counteract the principle object

.ithe Court of Director£/ appears to have in view, namely

to maintain the favorable sale in China of the produce of Bengal."

Although the Company could do nothing to thwart American impor­

tation of Turkey opium, the Select Committee concluded that

"we do conceive the speculations of the Americans are likely

1
permanently to interfere with the Interests of the Hon ble Com­
pany. 11 11 In terms of quality, Patna and Benares opium were

10
Downs, "American Merchants and the Opium Trade," p. 423.
11
From a letter from the Select Committee at Canton to the
Secret Committee of the Court of Directors in London, in Morse,
Chronicles of the East India Company, III, 72-73. The underlined
words were transmitted in code, Jun. 24. 1807.