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Article Title:
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History of Tea in Hong Kong: Tea, Opium and the Balance of Trade

Article Description:
====================

Even the most casual visit to Hong Kong cannot help but notice
what a uniquely vibrant Asia city it is. Hong Kong is exciting,
different, exotic and welcoming - all rolled into one. It is
basically Chinese (the majority of the residents are Cantonese)
but most people speak English and almost all are engaged in some
form of commerce.


Additional Article Information:
===============================

1336 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2008-05-07 11:12:00

Written By:     Jon M. Stout
Copyright:      2008
Contact Email:  mailto:[EMAIL PROTECTED]


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History of Tea in Hong Kong: Tea, Opium and the Balance of Trade
Copyright (c) 2008 Jon M. Stout
Golden Moon Tea
http://www.GoldenMoonTea.com



Even the most casual visit to Hong Kong cannot help but notice
what a uniquely vibrant Asia city it is. Hong Kong is exciting,
different, exotic and welcoming - all rolled into one. It is
basically Chinese (the majority of the residents are Cantonese)
but most people speak English and almost all are engaged in some
form of commerce.

For most visitors, Hong Kong is a place of beauty and excitement
and wonder from the time they arrive until the time they leave.

Hong Kong consists of three parts: Victoria Island and
surrounding islands, Kowloon, located on the tip of the peninsula
leading up to mainland China and the rest of the peninsula known
as the New Territories. Between Victoria Island and Kowloon was a
world class harbor that placed Hong Kong on the map as an entry
point into China.

The main beverage of choice is tea in one form or another and all
meals are usually accompanied by pots of steaming hot black,
green or pu-erh tea. Hong Kong has over 13,000 restaurants and
tea is the main beverage in almost every one of them.

Tea is more than a beverage in Hong Kong - it is a way of life
ingrained in the very essence of the culture. But it must be
noted that Hong Kong is not a producer of tea, nor is it merely a
consumer of fine Chinese tea.

Hong Kong however, played one of the most important roles in the
introduction of Chinese tea to the west in general and Britain in
particular, but this role was won at a very high price.

Chinese Tea, Hong Kong and the British Empire

During the 17th century Dutch and Portuguese traders introduced
Chinese tea to the European mainland and British traders soon
followed this trend.

Tea imports grew slowly in Britain because of high taxes on what
was considered a luxury item and monopolistic trading practices
of a small number of importers like the John and East India
companies. Tea was so popular and demand was so high, however
that smuggling and adulteration of tea supplies became rampant.

Eventually, enlightened tax policies and opening of the channels
of distribution occurred, smuggling evaporated and all classes of
the English population increased the demand for tea, Supplies
increased dramatically and tea drinking has been part of English
culture until present day.

In the 19th century, China was the main supplier to the British
and by 1830 annual imports of Chinese tea into Britain amounted
to 30 million pounds of tea or an average of 2 pounds of tea for
every citizen.

In addition to its place in British society as the most popular
beverage, tea was critical to British wealth because of the tax
revenues it generated and the wealth provide to powerful British
merchant companies.

British Trade

By the middle of the 19th century Britain was considered the
premier mercantile empire and British manufactured goods were
sold and traded throughout the world. As a leader in the
Industrial Revolution, Britain produced high quality consumer
goods that served as trading items through outposts strategically
located throughout the world.

Many of these outposts were established and supplied by the quite
formidable British army and navy in what would become the key
element of British Imperialism.

Because of the imbalance of trade caused by the ever increasing
level of tea imports, Britain was anxious to expand trade with
China to equalize trade and solve its balance of trade deficit.
China was seen by most trade experts as the world’s largest
untapped market.

Cultural Differences, the Demand for Bullion and the Opium Wars

While Britain was anxious to trade using its supply of
manufactured goods, China was not. Based upon a differing
cultural view whereby merchants and traders were viewed as part
of a lower caste and with distrust. Foreign traders were
particularly suspect. These traders were restricted in what goods
they could sell and where they could sell them. High duties were
imposed by China and traders were extremely limited in their
business activities.

Add to this fact that China was basically a closed society and
the result was a Chinese demand that tea sales required payment
in silver bullion rather than trade goods. Since Britain did not
have enough silver to meet the demands, a conflict arose. To
overcome this problem, Britain devised an aggressive strategy
that included the importation of opium and eventually outright
warfare.

In an attempt to reverse the trade balance, the British imported
increasing amounts of opium into China. Opium, a highly addictive
drug produced in the Bengal region of India, was controlled by
Britain as a result of the British annexation of Bengal in 1757.

As more and more Chinese became addicts, the balance of trade
reversed. To pay for the rising volume of opium imports, silver
started flowing out of China into British coffers. Britain was
still at risk however, because trade was still conducted in
mainland China under the control of the Chinese Emperor and
bureaucracy.

In the late 1830s, to curb the damage caused by opium on the
Chinese population, Chinese officials confiscated and destroyed
thousands of chests of opium stored in the English merchants’
warehouses in Canton China. Because of these events on the
mainland, Britain required an offshore base of operations under
British control and Hong Kong, then a sleepy fishing village
whose main export was salt, was an ideal candidate.

Under the directives put forth by Queen Victoria, Britain sent a
naval expeditionary squadron to China. This action resulted in
the first Opium War (1839-42), which China, faced with
overwhelming military force and troops reinforced from India,
lost.

The Treaty of Nanking, which ended the war, forced the Chinese to
open five ports to foreign commerce, abolish the cohong (state
trading monopoly system that restricted imports), sharply limit
the amount of customs duty they could charge, pay an indemnity of
21 million silver dollars, cede the island of Hong Kong to Great
Britain and grant not only Great Britain, but also its allies,
extraterritoriality, which made Westerners immune to Chinese law.

As a result of the First Opium War, Britain not only opened trade
with China, but established a base of operations in Hong Kong
that would remain until the island was returned to China in 1997.

These terms affected the common people adversely. Unemployment
increased substantially, particularly in Canton where tea trading
was a major business. Smaller, locally owned industries, unable
to compete against the imported factory-manufactured piece goods,
declined, depriving many peasant households of an important
source of supplementary income. Taxes soared as the government
tried to raise sufficient funds to pay the indemnity. And as
opium continued to pour into the country, the number of addicts
multiplied. Millions of lives were affected and often ruined.

As the British foothold on Victoria Island and Kowloon was
consolidated, the British sought to expand their advantageous
position and fought the Second Opium War in 1856. Given the
overwhelming technological advantage of the British the Chinese
were defeated and were forced to accept a humiliating peace.

By the terms of the Treaty of Tientsin (1858) the Chinese opened
new ports to trading and allowed foreigners with passports to
travel in the interior. The remainder of the Hong Kong peninsula
(the New Territories) was ceded to Britain and Christians gained
the right to spread their faith and hold property, thus opening
up another means of western penetration. The United States and
Russia gained the same privileges in separate treaties.

Notwithstanding the dislocation and tragedy on the mainland, Hong
Kong grew and prospered in a capitalistic world. China continued
to suffer under various war lords and revolution and remained a
third world country until recently. Hong Kong however became a
world center for trade and finance and its citizens prospered.
Hong Kong remained under British rule until 1997 when it was
returned as part of mainland China.

Hong Kong’s prosperity continues until present day but it got its
start with the import and export of tea. 




---------------------------------------------------------------------
Jon M. Stout is Chairman of the Golden Moon
Tea Company. For more information about tea,
green tea (http://www.goldenmoontea.com/greentea) 
and black tea (http://www.goldenmoontea.com/blacktea) 
go to http://www.goldenmoontea.com


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