Imperial Asiatic Company In Triest – The Last Attempt Of The Habsburg Monarchy To Penetrate East Indian Trade

04/12/23 Department of the Archives Administration

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ImperiImperiaal Asiatic Company l Asiatic Company in Triest – in Triest – The The Last Last

Attempt of the Habsburg Attempt of the Habsburg Monarchy to Penetrate Monarchy to Penetrate East Indian TradeEast Indian Trade 1781- 1781-

17851785

Michal WannerMichal Wanner

PraguePrague

04/12/23Department of the Archives

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Imperial Asiatic Imperial Asiatic Company in TriestCompany in Triest

The Central European Habsburg monarchThe Central European Habsburg monarchy -y -

perceived andperceived and interpreted as a continentalinterpreted as a continental powepower.r.

• This opinion is doubtless justifiedThis opinion is doubtless justified..• There were ambitions to penetrate into the There were ambitions to penetrate into the

field of the overseas trade and colonial field of the overseas trade and colonial expansion as well. expansion as well.


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• The success of the Ostend Company remained an The success of the Ostend Company remained an example worth following in Vienna.example worth following in Vienna.

• The second Vienna Treaty of 16th March 1731 - no The second Vienna Treaty of 16th March 1731 - no expeditions to Asia from the Netherlands.expeditions to Asia from the Netherlands.

• A new initiative towards the establishment of an Austrian A new initiative towards the establishment of an Austrian import company specialized in Asian products took place import company specialized in Asian products took place during the reign of Maria Theresa. during the reign of Maria Theresa.


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• PPlans of Johann Joachim Becher to establish an lans of Johann Joachim Becher to establish an Indian company.Indian company.

• The Vienna Oriental Company for the Trade in South-The Vienna Oriental Company for the Trade in South-East Europe in 1667-1683.East Europe in 1667-1683.

• Negotiations with electors, imperial cities and Spain Negotiations with electors, imperial cities and Spain about the establishment of a joint East-India Company about the establishment of a joint East-India Company in 1660-1661.in 1660-1661.

• Founding of the Oriental Company in 1719.Founding of the Oriental Company in 1719.• The Ostend Company in 1722-1731.The Ostend Company in 1722-1731.


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The Influential statesmen around the EmpressThe Influential statesmen around the Empress• Chancellor Duke KaunitzChancellor Duke Kaunitz• President of the Privy Commercial Council President of the Privy Commercial Council

Count Leopold Kolowrat (KrakovskCount Leopold Kolowrat (Krakovskýý))• Privy Councillors Binder and RaabPrivy Councillors Binder and Raab• Vice-chancellor Count Philip CobenzlVice-chancellor Count Philip Cobenzl

All All considered the overseas trade very considered the overseas trade very profitable and beneficial to the country.profitable and beneficial to the country.


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• They They supportsupporteded the the

development of development of

TriestTriest..

• TThe main he main

commercial routes of commercial routes of

the monarchy were the monarchy were

oriented northwardsoriented northwards..

• Hamburg served as Hamburg served as

the main seaportthe main seaport..

• These routes were These routes were

blocked by Prussia.blocked by Prussia.


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ObstaclesObstacles

• The inconvenient geographical position of the port.The inconvenient geographical position of the port.

• The imminent danger by North Africa piratesThe imminent danger by North Africa pirates ..

• Establishment of the state supported commercial company Establishment of the state supported commercial company

might have provoked negative reactions of Great Britain and might have provoked negative reactions of Great Britain and

France.France.

• Austria was moreover one of the main buyers for the colonial Austria was moreover one of the main buyers for the colonial

merchandise of the English East India Company.merchandise of the English East India Company.

These factors evoked a prudential approach in Vienna. These factors evoked a prudential approach in Vienna.


1744 James Mill1744 James Mill

Plan of thePlan of the capture of capture of BengalBengal

1774 William Bolts1774 William BoltsSetting up direct trade Setting up direct trade between Triest and East between Triest and East Asia.Asia.

Projects:Projects:

“It would be a great achievement, if successful”

Maria Theresa


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Imperial Asiatic Company Imperial Asiatic Company in Triestin Triest

Opponents of the project:Opponents of the project:• Count Franz Anton Kolowrat Count Franz Anton Kolowrat

(Novohradský), President of Commercial (Novohradský), President of Commercial Concessions in Mintage and Montane Concessions in Mintage and Montane AffairsAffairs

• Count Blümegen, President of the Czech-Count Blümegen, President of the Czech-Austrian Privy CouncilAustrian Privy Council

• Co-ruler Joseph II took a sceptical attitude. Co-ruler Joseph II took a sceptical attitude.


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William Bolts:William Bolts:• obtained Austrian citizenship;obtained Austrian citizenship;• rank of colonel;rank of colonel;• 55th th June 1775 the official licence to conduct direct June 1775 the official licence to conduct direct

trade between the Adriatic seaports of the trade between the Adriatic seaports of the monarchy and India, Persia and China. Via Triest monarchy and India, Persia and China. Via Triest the merchandise from the hereditary countries the merchandise from the hereditary countries should have been exported and tea, spice, rice and should have been exported and tea, spice, rice and chinaware imported. chinaware imported.

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Bolts wanted to obtain bank guarantees in the Bolts wanted to obtain bank guarantees in the NetherlandsNetherlands

• to finance export,to finance export,• to purchase a single English ship. to purchase a single English ship.

Therefore he approached Antwerp bankersTherefore he approached Antwerp bankers• Karl Proli,Karl Proli,• Borrokens and Nagel.Borrokens and Nagel.

These men financed the first expedition.These men financed the first expedition.


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BoltsBolts• mediated proposals for securities from mediated proposals for securities from

English banksEnglish banks..ProliProli• prevented the acceptance thereofprevented the acceptance thereof;; • tried to push through the establishment tried to push through the establishment

of a larger East India Company.of a larger East India Company.Chancellor KaunitzChancellor Kaunitz• did not accept the bankersdid not accept the bankers’’ proposals proposals

for a larger company.for a larger company.

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Imperial Asiatic Company Imperial Asiatic Company in Triestein Trieste

Leghorn 1776Leghorn 1776• Ship Ship Earl of Lincoln/Joseph und TheresiaEarl of Lincoln/Joseph und Theresia• 155 men on board155 men on board • Cargo - rifles, guns and copper Cargo - rifles, guns and copper • Letters of recommendation to the Letters of recommendation to the

Chinese emperor, Shah of Persia and Chinese emperor, Shah of Persia and several Indian princesseveral Indian princes

• 2424thth September 1776 set out. September 1776 set out.


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• The Strait of The Strait of Gibraltar Gibraltar

• MadeiraMadeira• Rio de Rio de

JaneiroJaneiro• Tristan da Tristan da

CunhaCunha• Cape of Good Cape of Good

HopeHope• Delagoa Bay Delagoa Bay • SuratSurat• GoaGoa• KarvarKarvar• The Nicobar The Nicobar

IslandsIslands


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Fight between France and Britain during the War for the Independence of the American colonies benefited the Austrian enterprise since the Austrian flag utilized the advantage of neutrality in these latitudes.

• Bolts• signed a trade agreement with the Portuguese in

Goa;• bought ship Fürst Kaunitz and sent it to Canton; • established contacts with the Indian Prince Haidar

Ali, ruler of Maisur State;• from whom he obtained license to establish

factories in seaports on the Malabar coast: in Karvar, Mangalore and on the Balliapatam Island in August 1778.

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• On May 20th 1778 did the ship Joseph and Theresia leave the Malabar Coast, heading to the Nicobar Islands.

• The islands were at that time in the possession of the Danish Asiatic Company.

• It brought here in 1760 a group of Moravian Church missionaries from Hernhutt in Lusatia.• On 6th June 1778 captain Bennet assumed the islands on behalf of Empress Maria Theresa.• The settlers rejected their new ruler and sent a message to the Danish government.


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• In Calcutta Bolts pursued his outstanding private affairs for most of the time. He had to pay a considerable bail of 40 000 guldens to avoid jail.

• The expedition sailed to Madras where Bolts also bought tropical woods and tea and then set out for the return journey.

• On Mauritius he bought three ships, sent one back to India and the other two were to accompany him to Europe.

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• Bolts’ Antwerp partners did not want to get engaged in building up of factories.

• They only wanted to exploit the existing commercial boom to their advantage.

• From the Lorient they dispatched a ship to China in spite of the fact that the Viennese government had not been informed about it.


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• With the arrival of the first ship from India the issue of the establishment of a trade company emerged.

• Proli and Kaunitz succeeded in convincing Emperor Joseph II about it.

• Kaunitz supported dispatch of further ships to India, with the aim of maintaining the new factories there.

• No unity prevailed regarding the legal status of the new company. The Triest group, led by the city governor Count Zinzendorf, a booster of free trade, gave preference to a small company without privileges, quite the contrary to Karl Proli’s views.


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• In autumn 1780 Proli’s ship Kaunitz (so-called big one) arrived from India to Triest.

• In May 1781 Bolts’ ships arrived in Leghorn – Joseph und Theresia and smaller ships Binder and Kollowrath.

• Bolts realized that Triest was not large enough for the sale of a major quantity of colonial merchandise.

• He gained the support of Leopold, the Grand Duke of Tuscany who wanted to wage a prestige struggle with his brother, Emperor Joseph II.

• Bolts and Proli wanted to proceed in the business but had not sufficient funds.

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• The Emperor in the meantime revised his opinion on the maritime trade, based on the events of the American War for Independence and his visit in the Austrian Netherlands, which took place from May to July 1781.

• He held talks with both groups what eventually led to some conciliation.

• The closure of Schelde to foreign trade was annulated in November 1781.

• 27th August a new public limited company was founded in Antwerp called Societé Imperiale Asiatique de Trieste.

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• Bolts was to conduct the affairs concerning Triest, Leghorn and the Adriatic, the remaining business affairs should have remained in Antwerp.

• The disputes between Bolts and the Antwerp group soon emerged again.

• Proli forbade his ships to stop at the Indian factories, Africa and on the Nicobar Islands.

• The Antwerp traders intended to conduct trade with Mauritius and Canton. In 1783 the Company already sent 12 ships to India, and the next year 5 of them returned to Ostend laden primarily with Chinese teas.

• Triest and Leghorn remained unaffected by such activities.

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• The factories were declining under such circumstances.

• The Portuguese destroyed the forts in Delagoa Bay and took prisoner the Austrians. Later an administrative centre of the Portuguese Mozambique arose on the site, the town of Lourenco-Marquez, now Maputo.

• The attempts to colonize the Nicobar Islands ended with disease and lack of food. In 1783 a Danish ship took the Austrian settlers away to India. The Moravian Brethren followed them four years later.

• The war between Haidar Ali and the English was a fait accompli. Kaunitz and Emperor Joseph II subsequently calmed down their interest in the East India Company.

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• The Antwerp group lost three ships within a year and the Privy Council refused to decide about further credits.

• In Vienna itself the ministers became convinced that the maritime trade as pursued from Triest did not achieve its aim.

• After the 1783 the Peace Treaty of Versailles the Company lost the advantage of neutrality and the drop in tea prices dealt it a severe blow.

• The business balance of the company was negative. In 1785 the Company showed a loss between 3 to 4 million guldens.

• Karl Proli committed suicide.Bolts left for Paris, where he died in an almshouse in 1808.

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• Balliapatam was conquered and destroyed by Raja of Karaikkal during the war with Haidar’s son, Sultan Tipu.

• Karvar and Mangalore were occupied by the British in the war with Haidar Ali.

• The factories nevertheless remained intact and negotiations with the English showed that further conduct of business was possible.

• In Ostend a group of private entrepreneurs, led by Viscount de Walkiers, succeeded in arranging a privately funded expedition. Soon a stable trade was established between Ostend and the factories in Karvar and Mangalore.

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• Why did this Austrian experiment with the overseas trade fail?

• Triest’s unfavourable position contributed to it, with difficult access from both the inland and the sea. Neither the Alpine countries not Tuscany could serve as the outlet for colonial merchandise.

• Major consumers of this merchandise were the Austrian Netherlands.

• From the Habsburg point of view the Austrian Low Lands nevertheless lay outside the heart of the realm, and were rather a territorial barter object in the power play than a primary base for commercial or colonial expansion.

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Imperial Asiatic Company Imperial Asiatic Company in Triestein Trieste

• The unwillingness of state to defend the interests of the Company face to face with the maritime powers.

• Bolts’ activities were too fragmented and his private war against the English created unfavourable conditions for the Company.

• Internal conflicts with the Antwerp group were of essential importance.

• The European competitors were too strong already, the financial basis and support of the bourgeois classes weak except for the Austrian Netherlands.

04/12/23 Department of the Archives Administration

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ImperiImperiaal Asiatic Company l Asiatic Company in Trieste – in Trieste – The The Last Last

Attempt of the Habsburg Attempt of the Habsburg Monarchy to Penetrate Monarchy to Penetrate East Indian TradeEast Indian Trade 1781- 1781-

17851785

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Imperial Asiatic Company In Triest – The Last Attempt Of The Habsburg Monarchy To Penetrate East Indian Trade