Chapter 2: History

Dutch Monopoly

Why British choose Singapore as a Trading Settlement?
→It has a good geographical location as it is situated between India and China.
→It has a good harbour with safe and deep waters.
→Availability of natural resources, like fresh water.
→Singapore had no Dutch flag, thus it was not Dutch-controlled.

What problems did the British face in establishing a settlement in Singapore?
→Ruler under Dutch control
  -The curent Sultan Abdul Rahman was under Dutch control.
  -Only he could allow Raffles to set up a trading port in Singapore, but the Dutch would object.
  -However, the rightful Sultan should be Hussein, not Abdul Rahman.
→Solution:
  -Recognised Hussein as the rightful Sultan of Johor.
  -Signed a treaty(political contract/agreement).
     ~Signing Ceremony(6 February 1819)
     ~Signing of treaty between Raffles, Hussein and Temenggong.
     ~British set up the trading settlement in southern Singapore.
     ~The sultan was paid $5000 annually, and the Temenggong was paid $3000 annually.
  -Set up a trading settlement.

→Dutch protest
  -Dutch claimed that Singapore indirectly belonged to them as the Sultan was under Dutch control.
  -E.I.C.* directors and the British government were angry with Raffles for stirring up trouble with the Dutch.
  -Raffles fought hard to keep Singapore.
→Solution
  - British wanted to used Holland as a buffer state(a territory situated between two or more countries which reduces the likelihood of war) against other European powers.
  -Holland was financially weak after the Napoleonic Wars.
  -Both signed the Anglo(British)-Dutch Treaty in 1824 - The British Sphere of Influence and the Dutch Sphere of Influence.
  -British now has 3 ports - Singapore, Melaka(Malacca) and Penang.

*E.I.C. - East India Company(British), which is the company Raffles belonged to.