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Policy
POLICY OF NON-INTERVENTION
EIC was a trading company ; only wanted to make great profits through peaceful trading Did not want to interfere in local politics which might embroil them in war and unnecessary expenditure EIC busy developing its possessions in India Abolition of trade monopoly in 1834 brought other European trades into sea ; reduced the companys profits
POLICY OF INTERVENTION
Increase in demand for tin and other raw materials Need for new markets to buy British goods Need for new fields of investment Anarchy in the Malay States Change in British policy of non-intervention Opening of the Suez Canal and increased European interest in the East Fear of European rivals
POLITICAL FACTOR
- Change of British
ECONOMIC FACTOR
- Demand for tin & raw materials - Anarchy in the Malay States - Opening of the Suez Canal
policy
COMPETITION FACTOR
- New fields of
POLICY OF INTERVENTION
Industrial Revolution Development of the tin-canning industry Malay States were very rich in tin To ensure supply of tin, Britain need to extend their control over the Malay States
Industrial Revolution and large-scale production New territories would become new markets for British goods
Lost of EIC monopoly of the China trade Straits merchant lost much there and looked elsewhere to invest Malay States ideal because of agricultural and mineral wealth potential Wanted British government intervention in these states to bring about law and order so that they can invest safely in the tin mines and plantation
3. Change of government in Britain in 1873 o Conservative Party ; Benjamin Disraeli o Favoured imperialism to boost British prestige o Forward Policy extend British control over more colonies overseas
Trade between East & West New route : shorter, cheaper & faster to get to the East Straits of Malacca : importance as a trade route to China
Russia o looking for new colonies Germany o after reunification in 1871, desperately looking for colonies in the East