JUAN YUAN'S MANAGEMENT OF SINO-BRITISH RELATIONS IN CANTON, 1817-1826
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support the militia and educational institutions, and make all manners of presents and contributions to the authorities far and near". Although leadership of the foreign merchants resided in the Select Committee of the British East India Company, each foreign firm licensed to transact business in Canton, as well as each of its ships coming into the port, had to be secured by a hong merchant, who had to guarantee the good conduct of officers and crew of the ship while in port, and to assure the Chinese authorities that the ship was not carrying contraband. Under this system, the security merchant also served the important role as intermediary between Chinese officials and foreigners.
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Despite accusations by the Chia-ch'ing and the Tao-kuang Emperors that Juan Yuan was expending more time and energy on compiling books and founding academies than on affairs of state, a sentiment echoed by the twentieth-century historian John K. Fairbank, both British and Chinese historical records show that Juan Yuan had taken the conduct of foreign affairs at Canton very seriously. He adhered strictly to the protocol established under the Canton system, handling negotiations with foreigners through the hong merchants and the Select Committee, refusing "to establish direct communications between the local government and [the foreign community]". Although contemporary foreigners at Canton complained about Juan Yuan's “inflexibility”, they remembered him later with respect. "His conduct... was both firm and conciliatory, and his memorials were admired by foreigners for their polite and dignified style..."
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Juan Yuan saw the British as a serious threat to Chinese security, and considered them the most difficult among foreigners at Canton to keep under control. This was consistent with the general attitude of the Ch'ing court that the British were pressuring for further expansion of trade with China beyond Canton, thus challenging traditional Chinese policy. In 1818, however, his proposal for a repressive policy towards the British, outlined in a secret memorial to the Chia-ch'ing Emperor, was not accepted by the Emperor, who exhorted moderation. The Emperor restrained Juan Yuan with this rescript: “Adopt a policy showing both strength and kindness simultaneously. Do not over-react under any circumstances and avoid rash actions.” "Appointed to Canton in the wake of the Amherst crisis, only four days after his arrival at Canton, Juan Yuan embarked on an inspection tour of the Pearl estuary outside Boca Tigris in the company of the provincial commander-in-chief of the Kwangtung marine force. They visited fortifications and gun batteries along the shores and on the islands, and paid a visit to Macau.7