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Shanghai International Settlement

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Shanghai International Settlement

The Shanghai International Settlement originated from the 1863 merger of the British and American enclaves in Shanghai, in which British and American citizens would enjoy extraterritoriality and consular jurisdiction under the terms of unequal treaties agreed by both parties. These treaties were abrogated in 1943.

The British settlements were established following the victory of the British in the First Opium War (1839–1842). Under the terms of the Treaty of Nanking, the five treaty ports including Shanghai were opened to foreign merchants, overturning the monopoly then held by the southern port of Canton (Guangzhou) under the Canton System. The British also established a base on Hong Kong. American and French involvement followed closely on the heels of the British and their enclaves were established north and south, respectively, of the British area.

Unlike the colonies of Hong Kong and Macau, where the United Kingdom and Portugal enjoyed full sovereignty in perpetuity, the foreign concessions in China remained under Chinese sovereignty. In 1854, the three countries created the Shanghai Municipal Council (SMC) to serve all their interests, but, in 1862, the French concession dropped out of the arrangement. The following year the British and American settlements formally united to create the Shanghai International Settlement. As more foreign powers entered into treaty relations with China, their nationals also became part of the administration of the settlement. The number of treaty powers had climbed to a high of 19 by 1918 but was down to 14 by the 1930s: the United Kingdom, the United States, Japan, France, Italy, Norway, Sweden, Denmark, the Netherlands, Spain, Portugal, Peru, Mexico, and Switzerland.

Nonetheless, the SMC remained a predominantly British affair until the growth of Japan's involvement in the late 1930s. The international character of the Settlement was reflected in the flag and seal of the Municipal Council, which featured the flags of several countries.

The international settlement came to an abrupt end in December 1941 when Japanese troops stormed in immediately following the Japanese attack on Pearl Harbor. In early 1943, new treaties signed formally ended the extraterritorial privileges of Americans and Britons, although its terms were not met until the recovery of Shanghai following Japan's 1945 surrender. The French later surrendered their privileges in a separate agreement in February 1946.

It was one of two Chinese international settlements, along with Gulangyu International Settlement.

After the British victory in the First Opium War, foreign powers including France obtained concessions in China through the unequal treaties.

The Treaty of Nanking and its supplementary treaty of 1843 – the first of the unequal treaties – provided British merchants with the right to reside with their families and rent grounds and houses in five ports – Guanzhou, Xiamen, Fuzhou, Shanghai and Ningbo – but there was not a word about separate residential areas for foreigners on Chinese soil. However, the imperial commissioner who negotiated the supplementary treaty reported to the Qing emperor that by signing the treaty he had successfully arranged that in the treaty ports "the boundaries of an area should be designated which foreigners are not allowed to exceed" (yiding jiezhi, buxu yuyue), an intent however that was not clearly stated in the English-language version of the treaty. The Qing rulers, by intending to confine the "barbarians" to an officially designated special zone, apparently hoped to resurrect the old Canton system, that is, a system that strictly confined foreigners to a segregated zone. At Shanghai, the intention of the imperial officials had clearly been initially to keep the foreigners out and upon his arrival in 1843, the first British consul, Captain George Balfour, could not even find a house for the consulate. The British finally decided to locate themselves in the northern suburbs and asked the Daotai, Gong Muiju, to designate an area there as a segregated British area. This dovetailed with the Daotai's intentions since two violent incidents between local Chinese and foreigners had prompted him to take steps to limit contacts between Chinese and foreigners. This was formalized in 1845 with the delimitation of a segregated area north of Yangjingbang, a creek that ran north of the Chinese city. Later that year Gong Muiju and Balfour concluded an agreement called the Land Regulations (Shanghai zudi zhangcheng), which set forth the institutional basis for the British settlement. In 1848, with the permission of the Daotai, the 138-acre British settlement – a fraction of the 5,584 acres the International Settlement was to cover by 1899 – was slightly expanded westward and northward.

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