Chapter 735 - The Treaty of Macau

With Salt Licenses as collateral, Gao Ju summoned the city's wealthy merchants—Foreign, Salt, and Chaozhou traders alike—to split the loan by headcount.

Though the interest wasn't exceptionally high, the Salt License collateral meant zero risk of loss. The 400,000 taels were quickly fully subscribed.

Gao Ju allowed himself a modest boast or two, raising his prestige considerably among Guangzhou's merchant community.

News that Gao Ju had raised the Ransom Fee through loans quickly spread via Meng Xian's intelligence channels. Delong Bank, as one of Guangzhou's largest exchange houses, had itself contributed 5,000 taels to the collective loan.

Gao Ju collected the silver. Of the total, 300,000 taels were sent in batches by Li Fengjie to the Australian camp outside the city.

For the remaining 100,000, Gao Ju followed his own plan: he deposited 30,000 taels into Delong Bank, then had Delong issue a bank draft to Governor Li for the balance.

Chests of silver were inspected and loaded onto ships at the military camp.

This hard currency would greatly alleviate Lingao's current shortage of precious metal reserves.

Gao Ju personally visited the camp outside the city several times, presenting Wen Desi and others with substantial gifts, along with sheep and wine to reward the troops.

His attitude toward the Australians was now considerably more respectful than before. They were not merely wealthy and capable tycoons—they were also bandits armed to the teeth. Fortunately, they were also merchants who honored their word. As business partners, the Australians were exemplary.

Gao Ju was pleased to maintain good cooperation with them. Besides Eunuch Yang, the Australians could serve as a formidable backer—and compared to the insatiable Yang, the Australians clearly preferred the "everyone prospers together" approach, sharing benefits rather than hoarding them.

The gifts Gao Ju presented were of considerable value—mostly luxury and pleasure items from the era. Wen Desi was thoroughly satisfied and ordered everything accepted.

Listening to Gao Ju's heap of flattery, the two sides discussed future cooperation of "wider scope" and "deeper involvement." Gao Ju readily agreed to provide the Beijing political and commercial connections he had previously been reluctant to offer.

On his final visit, He Chengzong accompanied him. Both sides reached agreement to launch a second phase of negotiations in Macau.

According to Li Fengjie's wishes, the Macau talks would be handled specifically by Li Luoyou. As for when the Australians might return to Guangzhou, Li Fengjie requested mid-December—after the current turmoil had subsided somewhat.

Subsequently, Wen Desi and the others hosted a banquet for Gao Ju and He Chengzong at the Vihara. Cups were exchanged, toasts raised repeatedly, and gifts presented—including valuable Australian goods intended for Li Fengjie and other officials.

Guests and hosts departed in high spirits.

With the Ransom Fee paid, the Task Force had no further reason to remain outside the city.

After Chen Haiyang and his officers collected additional "Reasonable Burden" from the surrounding area—fully demonstrating their prestige—they selected a day to withdraw from the Provincial River.

On November 20th, the Task Force fired a twenty-four gun salute. The entire army boarded ships and departed the camp.

The fleet arrived at Humen that night, rendezvousing with the garrison there. Most facilities had already been dismantled, the materials transported to Hong Kong. Only two Special Service Boat squadrons and one Marine company remained to continue holding the position.

This was a chip reserved for future negotiations with the Guangdong local government.

After resting one night, Chen Haiyang and the others led the fleet out of Humen anchorage. At noon on the 21st, passing Macau and Modaoyang, they entered Victoria Harbour and finally dropped anchor at Central Anchorage.

The two-month "Pearl River Basin Punitive Operation" was officially declared concluded.

During these months, construction of Base 852 in Hong Kong had expanded rapidly. Large numbers of captives provided the labor force.

When Chen Haiyang returned to Base 852, he found that several outposts and batteries covering Hong Kong's surrounding waterway entrances had been completed. The first main road near Central was under intense construction. This road roughly followed the coastline; Hong Kong's first wharves, warehouses, and trading houses would eventually be developed along it.

Because negotiations hadn't officially concluded, the Military Affairs General Court telegraphed the Task Force to rest and reorganize in Hong Kong. Ships requiring repair could return to Lingao; the remainder would stay on standby.

If negotiations collapsed, they would re-enter the Pearl River for combat.

Li Luoyou watched the Australian fleet sail out of the Pearl River Estuary, escorted by small boats trailing plumes of black smoke.

He understood the situation was effectively settled. The urgent task now was cleaning up the mess.

Sure enough, orders soon arrived from Guangzhou: commence negotiations with the Australians immediately.

Li Luoyou felt both resistance and anticipation toward these negotiations.

His anticipation stemmed from the knowledge that after successful talks, trade could resume and normal life on both sides of the Pearl River would return to its accustomed track. Whether for his personal interests or for the welfare of the common people, signing a peace treaty with the Australians held considerable significance.

His resistance came from awareness of the Australians' conduct in the Pearl River over the past two months. Government troops had once again demonstrated absolute incompetence. With merely dozens of ships and one or two thousand men, the Australians had rampaged through the Pearl River banks as if entering unpopulated territory, extorting "Reasonable Burden" everywhere, killing many local gentry, taking thousands of captives, and looting immense wealth.

The Australians' actions recalled another Jianzhou Jurchen. Of course, they were considerably more polite to commoners than those beast-like invaders—they didn't arrest people randomly or engage in widespread looting, arson, and killing. They were ruthless only toward those who resisted.

Li Luoyou keenly perceived that the Australians were far more intelligent than the Jurchens—and far more dangerous.

The negotiation location was chosen as Huang Shunlong's private residence.

Huang Shunlong felt honored to serve both Grand Shopkeeper Li and the Australians simultaneously. He vacated his finest courtyard for their use.

The negotiation representative dispatched from Lingao was Si Kaide, Director of the Colonial and Trade Ministry. This "Pro-Peace Party" member had always advocated negotiating peace with the Ming—or even accepting amnesty quickly.

The Executive Committee had agreed to his negotiating peace but expressly forbade any "Amnesty Acceptance."

Beyond the conditions already agreed upon under Guangzhou's walls—returning Purple Enterprise property, compensation, reopening bilateral trade, and so forth—Si Kaide presented six additional requirements:

Australians may freely purchase and hire population, and dispose of or transport population externally, without government interference.
All ships under Australian names entering Guangzhou for trade shall pay no tax. Cargo aboard shall be exempt from Chou Fen (tariff).
Purple Enterprise and other Australian industrial and commercial enterprises shall continue paying official commercial taxes, but all corrupt customary fees (Lou Gui) are waived.
Australians shall enjoy extraterritoriality in Guangzhou. Any arrest, detention, or interrogation involving Australians requires Australian consent.
Australians may freely purchase land and construct buildings in Guangzhou.
Hong Kong Island and surrounding outlying islands shall be controlled by Australians. Australians permitted to act freely thereon.

Si Kaide finished reading the six articles.

Li Luoyou felt somewhat relieved—there were no terrible indemnities or annual tributes. Due to lessons from the two Song dynasties, the Ming possessed considerable vigilance against such arrangements.

But the final article caught his attention: did "control" mean ceding Hong Kong Island?

In Ming history, Xiangshan Ao—Hong Kong—was far less famous than Haojing Ao—Macau. Even a merchant like Li Luoyou, who had conducted business along the Guangdong coast for many years, wasn't particularly familiar with it.

But familiar or not, ceding territory was absolutely impossible.

"Ceding Xiangshan Ao is out of the question," Li Luoyou stated firmly. He understood perfectly that this obscure island was likely already in Australian hands. Their demand to include it in the negotiations was merely an attempt to legitimize their control—to confirm their power in writing.

Si Kaide remained silent, continuing to listen.

"This clause requiring cession of Hong Kong Island—the Governor wouldn't dare agree to it. Even the Emperor himself would never dare utter the words 'Cede Land.'" Li Luoyou shook his head. "Furthermore, the Governor absolutely cannot memorialize this clause to the Court and bring it to Heaven's hearing."

Si Kaide still said nothing.

Yu Eshu of the Great Library had raised these very issues when drafting the terms. Under present conditions, having the Ming sign anything resembling the Treaty of Nanjing was systemically impossible. No Governor-General or Governor would dare put his seal to such a document.

"Moreover, the Court is deeply suspicious of overseas peoples," Li Luoyou continued. "The debate between Sea Ban and Opening never ceases at court. You wish to march openly into Guangzhou waving the Australian banner? Even if the Governor could somehow cover the sky with one hand—and there are several officials in the city who can memorialize directly to the Court—what happens when the Governor changes?"

Si Kaide was convinced: "Then what is your view, Sir?"

"This matter can only be known to you and me. It must never be proclaimed to the world."

Li Luoyou indicated that the Guangdong local government could only secretly agree to the Australian conditions. Both sides would "make fortunes in silence," with nothing committed to official documents, and certainly no brazen waving of Australian banners.

The Ming government prohibited all foreigners from residing or trading in Guangzhou. Except for the Portuguese privilege of entering Guangzhou for trade twice annually, no foreigner could remain there. The Australians, naturally, could not either.

If this right were forcibly demanded, even if Li Fengjie were willing to memorialize it, the wrangling in court would yield no result for three or four years.

"Fortunately, Australians are also descendants of Huaxia," Li Luoyou said with a conspiratorial smile. "Your faces and appearances are no different from Ming subjects. Why not continue posing as Guangdong natives?"

Once the identity issue was resolved, everything could be arranged.

Since they were nominally Guangzhou natives, buying land, constructing buildings, trading in people, hiring workers—all these activities were entirely at their discretion. The government would absolutely not interfere.

As for large-scale population export, Li Luoyou believed that as long as those exported were refugees from elsewhere, the government would not merely tolerate it but welcome it—otherwise, they could have obstructed Australian population exports from Guangzhou years ago.

Regarding the second article, ship taxation: since Australians would count as Guangzhou natives, and their shipping would operate only between Lingao and Guangzhou—purely domestic coastal trade—naturally there would be no need to pay Chou Fen and Zhang Shui required of overseas merchant ships and foreign vessels.

Regarding the third article, tax exemption: as long as a tacit understanding was reached with the government, this posed no problem. Commercial taxes in the Ming were originally not high. As long as merchants possessed adequate backing, local officials dared not extort too heavily. Some necessary customary bribes were unavoidable, of course—but given the Australians' reputation for killing without hesitation, probably no fool would be blind enough to demand that money.

Regarding extraterritoriality, Li Luoyou smiled bitterly: "Do you really care about this? No one in all Guangzhou is blind enough to try condemning you. You are powerful gentry now. A single card sent to the Yamen can bail out arsonists and murderers."

Regarding Hong Kong Island, Li Luoyou firmly opposed their occupation.

"The Governor can only turn a blind eye to this matter. He absolutely cannot permit you to lease that place like the Portuguese." Li Luoyou shook his head. "This is no small matter. The Portuguese acquiring Haojing Ao was a result of time and circumstance—not something that can be forced."

After ten days of bargaining and exchanges of telegrams and letters between Guangzhou and Lingao, the two sides finally reached a principled agreement in Macau.

Later known to history as the Treaty of Macau, the Empire's historical circles would long debate whether this agreement constituted a true treaty. The mainstream view held that the treaty was merely a memorandum of understanding between the Empire and the Ming local government. The text was never formally signed or sealed, and the Ming copy was eventually lost.

Not a true international treaty, this document was implemented in Guangdong only through the Empire's powerful force of strong ships and cannons.

Because the Guangdong government concluded this treaty privately, they naturally didn't file it in public archives. It was stored as a top-secret private document in Li Luoyou's residence for reference.

This text was eventually lost. According to the copy preserved in the Great Library, the Treaty of Macau contained eleven articles:

Australians may freely travel to, reside in, trade in, and farm in Guangzhou and surrounding prefectures and counties controlled by the Guangdong Governor, carrying family and servants. However, they must pose as Guangdong natives and may not publicly identify themselves as Australians.
All Australian affairs in Guangzhou are the responsibility of the Purple Enterprise Grand Shopkeeper. All commercial and civil disputes shall be handled by him in coordination with the government.
All Australian industries in Guangzhou shall pay tax according to government regulations, but miscellaneous levies and customary fees are waived.
Australians may purchase land and real estate in Guangzhou.
Australian ships entering Guangzhou for trade are exempt from all Water Pay, Tariffs, and Fees. However, they must pose as Ming ships and may not identify themselves as Australian vessels. Otherwise, taxes and fees will not be waived.
Australians may freely conduct any trade in Guangzhou and freely transport goods and silver in and out without government interference.
Australians may freely hire and purchase population in Guangzhou and freely transport them to any location Australians wish.
The Guangdong government will not interfere with Australians repairing ships or staying in Xiangshan Ao (Hong Kong).
All Australian industries, land, and businesses in Guangzhou, and property and goods previously seized, shall be returned. Since some goods were sold and equipment damaged, both sides agree to a one-time compensation of 30,000 Kuping Taels from Guangdong.
All Ming subjects implicated in the previous arrest of Australians shall not be infringed upon or arrested by the government. Those already arrested shall be released immediately. Property damages shall be compensated by a one-time government payment of 5,000 Kuping Taels.
After all compensation, release, and return work is completed, the Australian garrison at Humen will withdraw completely.

Beyond the eleven articles, there were supplementary treaties and several detailed agreements. Many specifics were personally drafted by Ma Jia of the Tribunal, the formatting remarkably solemn.

Overall, the Executive Committee didn't place excessive value on this treaty, as it was essentially a private agreement between the Senate and Li Fengjie. Its binding force on the Ming government extended only through Li Fengjie's tenure. Once he left office, the agreement would effectively expire.

However, the traditional characteristic of Chinese bureaucracy was the extreme inheritance of customary rules. As long as this agreement operated smoothly for several years, forming an interest group around it, any new Governor would be forced to acquiesce.

Furthermore, given current development momentum, how long Ming rule in Guangdong would last—or how many Governors might come and go—remained uncertain.

The reason this low-level memorandum was drafted in such detailed and solemn form was primarily Ma Jia's intention to satisfy the Senate—giving Senators the satisfaction of signing an unequal treaty.

In Ma Jia's view, the countless riches and population brought back by the Task Force, combined with the 300,000-tael Ransom Fee, outweighed any treaty.

Despite the treaty's limited practical significance, when the telegram announcing the signing of the Treaty of Macau reached Lingao, the Senate ordered a twenty-four gun salute and a one-minute whistle blast at Bopu to celebrate.

The Treaty of Macau didn't address the issue of He Rubin's remnant troops trapped in Qiongshan.

Li Fengjie considered this matter outside his purview. Besides, no county in Qiongzhou Prefecture had officially reported falling, so he was content to play deaf and mute.

The day after celebrating the Treaty of Macau, news arrived from Guangdong: Liangguang Governor-General Wang Zunde had died of illness at his post in Zhaoqing. The Governor-General's seal would be temporarily safeguarded ("Hu Li") by Li Fengjie.

Thus, the task of cleaning up the Qiongshan mess and rescuing He Rubin's beleaguered troops fell to Li Fengjie after all.

Of course, he could continue playing deaf until a new Governor-General arrived. But Li Fengjie harbored private ambitions: he hoped to transform "Safeguarding" into "Acting For" ("Shu Li"), and ultimately achieve "Direct Regularization"—permanent appointment as Governor-General.

To this end, he dispatched fast horses to the capital for lobbying. Simultaneously, he sent Li Luoyou back to Lingao, striving to reach a swift agreement with the Australians regarding the rescue of He Rubin's remnants.

(End of Chapter)