# JUAN YÜAN'S MANAGEMENT OF SINO-BRITISH RELATIONS IN CANTON
## 1817-1826
## WEI PEH T'I
In November 1817, Juan Yuan (1764-1849) was appointed Governor-General of Kwangtung and Kwangsi. He had formerly served as Governor of Chekiang and of Kiangsi. The Governor-General at Canton was the highest Chinese authority dealing with foreign trade and relations in China on a day-to-day basis and on specific issues. During his tenure at Canton, for almost a decade, with the Governor of Kwangtung and the Superintendent of Canton Customs, he handled foreigners in accordance with rules set out under the Canton system.
At the end of 1817, there were several potentially explosive problems involving Sino-British relations and trade. The failure of the Amherst mission the year before had left certain controversies unresolved. The fact that the five ships carrying the mission to Taku had managed to evade Chinese surveillance after being provisioned, and had surveyed the China coast from Taku to Canton, had left the Chia-ch'ing Emperor and the court more sensitive than ever to the issue of British naval presence in Chinese waters. Jurisdiction over foreign nationals in port was also a source of serious disagreement between the Chinese authorities and foreigners in Canton. The importation of opium and exportation of sycee silver, both prohibited by imperial decree, were to become a major area of controversy in time. Diplomacy as an art of managing foreign relations was outside the Chinese experience. As Westerners at Canton were neither tribute bearers nor alien conquerors, Juan Yüan chose to manage his dealings with foreigners as a matter of security and control.
The Canton system governed all foreign (except Russian and tributary) trade in China, which had been confined to this port since 1760. Essentially, under this system, foreigners carried on their buying and selling through franchised hong merchants. As time went on, these hong merchants performed an increasing number of functions. By the time Juan Yuan came to Canton, they "not only settled prices, sold goods, guaranteed duties, restrained the foreigners, negotiated with them, controlled smuggling, and leased the factories to them, they also had to manage all the aspects of a banking business, act as interpreting agencies, ...