Excerpts from a paper by Dr. Teresa Albuquerque of the Heras Institute, St. Xavier's College, Bombay, dated September, 1990. We are grateful to Prof. Albuquerque. ----------------------------------------------------------------------------------------------------- The treaty was a product of colonialism. One nation was in the fading twilight of its glory, the other at its prime. Goa was merely a pawn in the game. In 1872, the Bombay Government terminated the Mughul firman under which Portuguese goods were imported into Surat at a special duty of 2.5 percent. Portugal reacted by claiming compensation, in London. Negotiations were protracted. Portugal demanded an extension of the nearby railway line in India to the harbour of Marmagoa. The British were not eager. Bombay was their first priority, and they contemplated a rail link to Karwar. They gave in ultimately, as they desired a common tariff with Portugal. When Portugal offered to stand financial security for any firm that would undertake the extension, England relented. Consequently, the the Anglo-Portuguese treaty was signed in December 1878 in Lisbon. The agreement called for the construction of a railway line from Hubli to Marmagoa, abolition of duties at frontiers, uniformity of duties at maritime ports and and on spirits, and the control of salt and opium output in Goa. The British agreed to pay the Portuguese Government the sum of four lakhs annually for twelve years, to guarantee the British firm's railway project. The British monopoly of salt was now extended. It did seem initially that the treaty was bearing excellent results. The price of various items of consumption came down. The revenue of Portuguese India more than doubled from 1864 t0 1888. In 1861, a contract with the Portuguese Guaranteed Railway was sealed, and development of Marmagoa harbour was also undertaken. Treaty provisions handed control of the salt manufacture and distribution in Goa to the British in return for an annual payment of Rs. 400,000. An annual allowance of 14 lbs. of salt was made available to each subject at a low rate. This quota was considered insufficient. The high-handed manner of supervision of salt-pan operations was also resented. When the Bombay Salt Department raised the duty in 1888, heavy smuggling was conducted across the ghats. The tax on toddy-coconut trees was haiked from Rs.4 to Rs.6 to streamline rates with India. This was correctly anticipated as a measure that would extinguish one of the few industries in Goa. In 1981, there was a general strike of toddy-drawers in protest against the tax. In January 1892, the treaty term was completed and it was not renewed. Goa soon reverted to its former condition. To keep is head above water, the government went on a rash-course of over taxation. Heavy custom tariffs paid no heed to protecting local industry. The jaggery industry almost came to a standstill. Many changed to distillation of liquor. Conducted illicitly, this proved very lucrative. Excise duty on palm liquor was not enforced. Yet excise duty on several articles of consumption were raised nine times higher. Britain also stopped import of salt from Goa. A freight-war saw rates slashed by the mighty GIP and Southern Maratha Railways. The tiny railroad in Goa could nit compete and in 1902 it was taken over by the Madras Southern. Cargo was diverted away from Marmagoa to Karwar, reaching 78% by 1926. Cunha-Braganza proclaimed: Goa is subject to a two-fold Portuguese and British imperial exploitation. With the economy coming to a grinding halt, many migrated to British India. A trickle around 1828, it gradually increased and in 1874 the number who left was 5900. In 1888, the mass movement gathered momentum, and almost a sixth of the population emigrated. An estimate taken in 1926 recorded 120,000 scattered across the world- 40,000 of them in Bombay. Ironically, it was their earnings, however meager, which saved their financial situation in Goa from becoming more chaotic. In 1927 the remittances of emigrants in British India were said to have amounted to over Rs. 1,25,00,000/- per year. K. N. Menon pronounced: "In Bombay city alone there are 10,000 Goan domestics, and more than 3000 tailors, while music shops and bands are their monopoly. Their are thousands of Goans in clerical posts in industrial towns in India, and a very large number of Goans occupying high positions as doctors, lawyers and professors. Their remittances to Goa estimated at fifty million rupees a year enable the middle class keep up a reasonable standard of living, provide money for education, and make good the trade deficit. The Portuguese Government inflicted an emigration tax on those who tried to leave for a better life. This amounted to Rs. 50,000 annually. Emigrants purchased Goa charity lottery tickets in Bombay worth twelve million rupees a year. The less fertile district of Bardez witnessed the highest number of emigrants. This feature became evident in the desolation of fallow fields in most villages of the province. Ultimately, lt was the bureaucratic element that remained behind, in line with the Government. The working class was lulled into complacent subservience and utter lack of initiative. This moral decadence of a people was the grave fall-out of the Anglo-Portuguese Treaty of 1878.