SILK AND SILVER: MACAU, MANILA AND TRADE IN THE CHINA SEAS IN THE
SIXTEENTH CENTURY
(A lecture delivered to the Hong Kong Branch of the Royal Asiatic Society at the Hong Kong Club. 10 June 1980.)
JOHN VILLIERS*
In the second half of the 16th century there developed a pattern of trade in the China Seas and the Indonesian and Philippine archipelagos of which the two chief entrepôts were Portuguese Macau and Spanish Manila. Other centres were also involved, notably Japan in the north, Malacca, Timor and the Moluccas in the south and Mexico on the other side of the Pacific Ocean. All these places played a role in the development of a vast and complex trading network that depended primarily on supplying Macau and Manila with two commodities — silk and silver — which neither produced.
There was of course a highly developed trading system in the China Seas long before the Europeans arrived, but it so happened that they came on the scene just at a time when Chinese naval and commercial power was waning and Japan was in the midst of a period of feudal anarchy. It was therefore relatively easy for them to penetrate this system, and even at some points and for a limited period to dominate it. By the mid-15th century Chinese seapower had greatly declined and the famous mission of the eunuch-admiral Cheng Ho had no successors. The reasons for this decline are complex and need not detain us here. Suffice it to say that in 1420 the Ming navy consisted of some 3800 vessels. By the end of the century it had almost disappeared. By 1500, death was, at least in theory, the penalty for building a three-masted sea-going junk and in 1551 it was decreed that all communications with foreigners overseas would be treated as espionage.
Private trading by the eunuchs and others continued during this period, but in the face of increasing official hostility, and Chinese merchants trading in South East Asian ports had to conduct their
* Mr Villiers is Director of the British Institute in South-east Asia (Singapore),