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Tax dodging and bribery: the practicalities of trade in the 18th-century Indian Ocean

Tue, 16/05/2023 - 02:36

Of all the things that the British can justly claim to have left behind at the end of its empire, the most pervasive is corruption.

This article by Dan McKee of the British Library shows examples.

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East India Company merchant John Pybus compiled notes about the practicalities of trade in various ports and settlements of the Indian Ocean in the 18th century. Among lists of prices, exchange rates, and goods are advice and instructions for enterprising traders looking to maximise their profits through bribery and tax dodging.


(A list of goods available at Bengal, Mss Eur F110/11, f 16.)

Gift-giving is mentioned in the description of many ports. At Atcheen (Aceh, Indonesia), Pybus bluntly states that a visiting merchant must ‘visit the King and make him a Present’. For the Spanish colonial port of Manila, he helpfully includes a list of individuals ‘whom it is proper to get acquainted with’ and whose goodwill was required to conduct business successfully at the port.


(A list of notable officials, merchants, and other individuals in Manila. Mss Eur F110/11, f 36)

This content is supplied by the British Library under the Creative Commons Licence. It was first published on 2 May, 2023

The propriety of these ‘gifts’ seems questionable, at least in the case of the authorities at Manila. While a trader was instructed to prioritise visiting the Governor of Manila to present him with a token of gratitude, this ‘must be done… without any witness, for should any body be by, he will not accept it’.

Payments could also be used to avoid paying dues on merchandise when the Spanish authorities came to measure a ship and assess its cargo. First, it was important to greet the inspectors warmly- ‘you must have a very handsome entertainment for them which is very acceptable to them… I would advise to have at least, a dozen dishes of victuals, with what variety you can of Europe pickles and likewise of wines’. If this did not make a sufficiently good impression, the money-conscious captain was to emphasise that ‘you are no stranger to the customs of the port, and that you intend to be gratefull for all favours’. Finally, a direct approach was taken to secure favourable treatment from the man tasked with measuring the ship. When a Spanish official was sent below decks to take measurements, ‘send a man down with 10 or 12 dollars, to slip into the officer’s hand (unseen)… it will turn to good account’.


(A map showing the Bay of Manila, created in 1798)
The propriety of these ‘gifts’ seems questionable, at least in the case of the authorities at Manila. While a trader was instructed to prioritise visiting the Governor of Manila to present him with a token of gratitude, this ‘must be done… without any witness, for should any body be by, he will not accept it’.

Payments could also be used to avoid paying dues on merchandise when the Spanish authorities came to measure a ship and assess its cargo. First, it was important to greet the inspectors warmly- ‘you must have a very handsome entertainment for them which is very acceptable to them… I would advise to have at least, a dozen dishes of victuals, with what variety you can of Europe pickles and likewise of wines’. If this did not make a sufficiently good impression, the money-conscious captain was to emphasise that ‘you are no stranger to the customs of the port, and that you intend to be gratefull for all favours’. Finally, a direct approach was taken to secure favourable treatment from the man tasked with measuring the ship. When a Spanish official was sent below decks to take measurements, ‘send a man down with 10 or 12 dollars, to slip into the officer’s hand (unseen)… it will turn to good account’.


(Instructions for trading as an Englishman in Dutch-controlled Malacca. Mss Eur F110/11, f 19)

Ignoring rules and buying influential friends seem to have been essential business skills in this period.

Dan McKee
Gulf History Cataloguer

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