Lynch
Lynch
Lynch
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by JOHN LYNCH
from India, an operation which would involve great problems of timing, logistics and
finance.
L.A.S.-I
'men of the lowest origin'; the profits of commerce had enriched some of
their descendants, but had 'neither given them local attachments or exten-
sive influence '.0 Jacob's pejorative views on the creoles of the Rio de la
Plata were subsequently echoed by General Auchmuty, who thought that
'from their ignorance, their want of morals, and the barbarityof their dis-
position, they are totally unfitted to govern themselves'. 1 Yet most of the
British experts assumed that the creoles were ready to revolt and only needed
a lead from Britain. As Sir Arthur Wellesley, later Duke of Wellington,
pointed out, there was no hard evidence for the assumption. Nor could there
have been, for the mass of the creoles themselves had not yet clarified their
political objectives. On this essential point, therefore, the British government
necessarily lacked conclusive information. There was no sound alternative
but to wait and see.
While it was impossible to be certain whether the British would be accept-
able in Spanish America as liberators, it appeared more than likely that they
'would be welcomed as traders; the creole desire for a free trade with Britain,
it was urged, if properly exploited, would open an immense market for
British exports and an important source of bullion and raw materials. But
was the commercial argument for intervention in Spanish America powerful
enough to outweigh the attendant political risks? The main routes of a
limited British trade to Spanish America were already well established by
the second half of the eighteenth century. During years of peace consider-
able quantities of British manufactures went to Spanish America as re-
exportsfrom Spain, and for this reason British commercial opinion welcomed
the introduction of comercio libre between Spain and her colonies from
1765.22 And in the Americas there were two centres of an illegal trade with
the Spanish colonies, the free ports in the British West Indies and Portu-
guese Brazil in the South Atlantic. The free port system, which in effect
placed the onus of breaking Spanish laws and evading Spanish patrols on
the merchants and shippers of Spain herself, was designed precisely with the
object that Britain might enjoy 'all the advantages of the foreign colonies
without being exposed to the expense of establishing or protecting them'.23
And it was successful. Although the lucrative and closely guarded Mexican
trade largely eluded British penetration, Cuba, Venezuela, New Granada,
20
Jacob to Windham, 24 Sept. I806, B.M., Add. 37884, if. I59-68.
21
Auchmuty to Windham, 6 March 1807, The Proceedings of a General Court Martial ...
for the Trial of Gen. Whitelocke(2 vols., London, i808), n, 768.
22 Rochford to Conway, 28 Oct. I765, Public Record Office, London, S.P., Spain, 94/172.
23 Thomas Irving, Inspector General of Customs, Nov. I786, in Frances Armytage, The Free
Port System in the British West Indies. A Study in CommercialPolicy, 1766-I822 (London,
I953); see also B.M., Add. 38345, if. 208-13, for a text of Irving's report on the free port
system.
and even Peru-via the Isthmus ports-were drawn within the trading orbit
of the British West Indies, supplying raw materials such as hides, cochineal,
and precious woods, and the most valuable and valued commodity of all,
bullion, in return for linens and cottons, woollen goods and hardware.
While complete statistics of the trade are lacking, a cautious official estimate
placed the total value of British manufactures exported from the West Indies
in 1792, that is in time of peace, in the region of ?500,000.24 And during
time of war with Spain, while the British navy blockaded Cadiz, British
exports via the free ports supplied the consequent shortages in the Spanish
colonies. By i8o8 the value of such exports from Jamaica alone had probably
grown to over ? i million.25
It was, of course, impossible to attempt a similar system of trade with
southern Spanish America. But Brazil and its outpost at Colonia do Sacra-
mento served as a valuable entrepot for contraband trade with the Rio de la
Plata. British manufactures, lawfully introduced into Brazil, were taken in
Portuguese vessels to the Rio de la Plata and thence clandestinely or with
official connivance to the provinces of the interior and Upper Peru. The
Spanish occupation of Colonia and the creation of the viceroyalty of the Rio
de la Plata in 1776, followed by the extension of comercio libre to southern
South America in I776, were designed in part to close a vulnerable part of
the empire to British penetration. But it was never completely closed. Goods
continued to be landed from Brazil, a route which was widened in I795 by
the permissiongranted to the Rio de la Plata to trade with foreign colonies.26
And from 1796 wartime shortages in Spain's southernmost colonies made
them tempting markets for the foreigner, markets which the Spanish govern-
ment was forced to open periodically to neutral shipping from November
I797. British activity in the South Atlantic in the 1790s, though primarily
commercial in character, was large enough to raise a security problem in
Spanish eyes; and from 1796 the local authorities frequently reported that
English 'corsarios' in the South Atlantic and Pacific were given shelter and
succour in Portuguese Brazil.27 While the British contraband trade in the
24
Armytage, The Free Port System, pp. 69-70, 92-3; see also D. B. Goebel, 'British Trade to
the Spanish Colonies, I796-1823 ', American Historical Review, XLIII (I938), 288-320.
25
Armytage, The Free Port System, pp. 92-3. The total value of British exports to 'all
parts of the world ' rose from ?22 million to ?40 million between 1790 and i808, according
to an official estimate.
26 Real orden to Viceroy of Rio de la Plata, 4 March I795, Archivo General de Indias, Indif.
Gen., 844; Documentos para la historia argentina (Buenos Aires, 1913), VII, 89.
27 Aviles to Saavedra, 5 June I799, 31 Dec. 800o,and passim, A.G.I., Estado 80; Soler to
Aviles, I8 July 800o,Aud. de Buenos Aires 39, referring to the 'scandalous introduction
of every class of foreign merchandise'; Aviles to Governor of Montevideo, 25 June I8oo,
Aud. de Buenos Aires 37. See also Sergio Villalobos R., Comercio y contrabandoen el Rio
de la Plata y Chile 1700-I8I1 (Buenos Aires, 2965).
Rio de la Plata in the I79os and early I8oos sustained severe competition
from French, German, Portuguese and United States shipping, its rivals
probably carried a considerablequantity of British goods.28
A section of British commercial opinion, of which William Jacob was
the most eloquent spokesman, argued in favour of a 'free intercourse
with Spanish America', on the grounds that existing channels of trade
were inadequate, that the needs of Britain and Spanish America were com-
plementary, and that the latter could consume goods equal in value to
Britain's total exports to the rest of the world.29 This view assumed that
British goods could undersell those of any rival if only the Spanish monopoly
were broken, and that the Spanish American market was capable of almost
limitless expansion. The first assumption was probably correct. At any rate
Spanish Americans were impressed by the cheapness of British goods
wherever they could evade Spanish taxation. In i8o6 a report from the West
Indies claimed that free port traders learnt from a Spanish source at Porto-
bello 'that the value of a piece of Colchester Bays, which they sold for 35
pieces of eight, at the mines of Potosi amounted to 1,600 pieces of eight ...
he accounted for it by the Spaniards' excessive laziness in those countries
and consequent dearness of labour, want of every necessary for clothing, the
distance of Potosi, the vast 40 per cent duties of the Crown, exaction of
various Governors and variety of proprietors ...' 30 The second
assumption
was more questionable. British observers rarely bothered to analyse the real
potential of the Spanish American market, with its limited capacity and its
relatively small consumer population. One of the few who did was a soldier,
Sir Arthur Wellesley, who relied for his information on experts like William
Jacob. Wellesley argued that northern South America, though possessing
great economic potential, would have little immediate value as a market
because of its small population and the poverty of its communications with
the rest of the subcontinent; he inferred that the limit of its demand for
British goods had already been reached through existing channels of trade;
and he argued that British occupation, bringing with it the abolition of the
slave trade, could not be expected to improve production and consumption.31
28 See the correspondenceof Gaspar de Santa Coloma, Spanish merchant in Buenos Aires, in
Enrique de Gandia, Buenos Aires colonial (Buenos Aires, 1957), pp. 35-55.
29 William
Jacob, 'Plan for Occupying Spanish America, with observations on the character
and views of its inhabitants', 26 Oct. I804, P.R.O., Chatham Papers 30/8/345, and
' Memorial on the Advantages to be obtained by Great Britain from a Free Intercoursewith
Spanish America', I4 Feb. I806, F.O. 72/90.
30 Draft memorandum suggesting expedition to secure Isthmus of Panama, c. I806, B.M.,
Add. 37889, f. 295v; see also Selkirk, 'Observations', B.M., Add. 37884, f. 17.
31 Memorandum, 15 Feb. 1807, Arthur, second Duke of Wellington (ed.), Supplementary
Despatches, Correspondenceand Memoranda of Field Marshal, Arthur, Duke of Welling-
ton (hereinafter cited as SupplementaryDespatches) (15 vols., London, i858-72), vI, 59-60.
The views of Wellesley may have been nearer the truth than those of
Jacob, though they were not perhaps valid for every part of Spanish
America. At any rate the commercial argument for British intervention in
Spanish America was rarely regarded as powerful enough to justify fighting
for new markets. Until the crisis years of 1806-7, when it appeared that the
continent of Europe was being closed to British exports, existing outlets
were regarded as adequate. At the end of the eighteenth century Britain may
have exported about 35-40 per cent of its total industrial production.3 In
8o05,on the eve of the continental blockade, the greater part of these exports
were absorbed by overseas markets, 27 per cent by the United States, 40 per
cent by 'all parts of the world ', which meant in effect the British empire
but also included South America; while the continent of Europe took 33
per cent. British exporters, therefore, had a variety of options and they were
not utterly reliant on any one market or dependent on any one part of the
world. Closure of the continent, even if it were complete, would only be
disastrous if it coincided with closure of the United States. The latter was a
possibility, of course, and against this event exporters sought for alternative
markets. But in this period disaster was never complete. This meant that the
Spanish American market, though useful in its existing proportions and
important enough to be expanded where possible, was never so vital that it
was necessary to take it by force, either for dominion or for emancipation.
The absence of compelling political and commercial motives conditioned
British policy towards Spanish America for many years after 1783. Spanish
American agitators converging on London found the post-war environment
unpropitious for eliciting British interest in their cause.33 It was not until
179o, when the Nootka Sound dispute brought Britain to the verge of war
with Spain, that the British government considered the possibility of attack-
ing Spain's colonies. It was now that Miranda first caught the eye of the
prime minister, William Pitt, through the mediation of his patron, Thomas
Pownall, a former governor in British North America and authority on
imperial affairs. The two men met-on I4 February and 6 May-but there
32 See Francois Crouzet, L'Economie Britanniqueet le Blocus Continentale(i806-1813) (2 vols.,
Paris, I958), I, 68-9. This figure is open to question. According to another estimate,
about I805 the woollen industry exported 35 per cent of its final product, the iron and steel
industry 23.6 per cent; see Phyllis Deane and W. A. Cole, British Economic Growth I688-
1959 (2nd ed., Cambridge, I967), pp. I96, 225.
33 For examples of such attempts see 'Plan to deprive the House of Bourbon of its resources
in the New World', signed Ed. Bott, Dec. I783, P.R.O., F.O. 30/8/345; 'Proposal of
several Mexicans for a treaty of amity and commerce with England', Io Nov. I785, ibid.;
'Proposals made by the Creoles of Santa Fe', March 1783, F.O. 30/8/35I. See also W. S.
Robertson, 'Francisco de Miranda and the Revolutionizing of Spanish America', American
Historical Association Report, 1907 (Washington, I909), I, 202-6; Manuel Briceiio, Los
Comuneros, Historia de la insurreccion de 178I (Bogotai, I880), pp. 74, 23I-7.
3a Secret paper on South America, Popham to Yorke, 26 Nov. I803, CastlereaghPapers, vii,
288-9; Robertson, 'Francisco de Miranda and the Revolutionizing of Spanish America',
A.H.A. Report, 1907, I, 276-7; John A. Schutz, 'Thomas Pownall's Proposed Atlantic
Federation ', Hispanic American Historical Review, xxvi (1946), 263-8.
35 Robertson, Life of Miranda, I, 112.
36 Grenville to
Bute, 13 April 1795, P.R.O., F.O. Spain, 37.
really from its plenty and capability to supply this country in the most ample
manner, offer very additional reasons for your pressing Mr. Dundas to make
his intended attack as soon as possible; the force he proposed is certainly in
every respect fully adequate to the service; we might if we have a good
passage from Bombay from whence I would sail in September go direct
without touching anywhere'.51
Yet Dundas's plan for an expedition to Buenos Aires had still not been
given cabinet sanction when Pitt's administration fell in February I80o and
was succeeded by the Addington ministry. The lobbyists tried to keep the
scheme alive in the new government, where it had a distinguished advocate
in Nicholas Vansittart, joint secretary of the treasury.52But a final decision
was again postponed, first because troops were more urgently needed in
Egypt, then because of the opening of peace negotiations with France.
These were concluded at Amiens in March I802. The long war had brought
no significant change in Britain's Spanish American policy.
The peace of Amiens was short-lived and on 18 May 1803 war was
renewed between Britain and France. In the course of this year Vansittart
introduced Popham and Miranda and the former indicated that he wished to
serve 'in whatsoever expedition may be formed to establish the indepen-
dence of South America '.3 Thus began an association which added new
vigour to the Spanish American lobby and brought it closer to its objectives.
Popham's commitment to independence, of course, was always ambiguous,
for he also seems to have had in mind the establishment of a British colony
or at least a British satellite somewhere in Spanish America. This can be
inferred from the plan which he submitted to the government in November
1803, when he pleaded for an expedition against Buenos Aires in order to
establish a military base ancillary to Miranda's main target, Venezuela.54
With the support of private enterprise-Alexander Davison, a successful
government contractor was an enthusiastic associate-preparations actually
got under way, though Addington halted them early in 1804 as there was
still no decisive rupture between Britain and Spain. This was not the end.
The lobbyists renewed their pressure when Pitt formed his second adminis-
tration in May 1804 and Dundas, now Viscount Melville, returned to office
as first lord of the admiralty. And conditions now seemed to favour their
cause as never before.
Britain's relations with Spain, whose subordination to France was now
almost complete, were fast deteriorating. In October 1803 Spain had agreed
to pay France a yearly subsidy of almost ?3 million, and in the course of
1804 it seemed that she was also prepared to place her naval resources at the
disposition of her neighbour. In reply Britain blockaded Ferrol, and on
5 October British frigates intercepted a large bullion shipment from the Rio
de la Plata, sank one Spanish vessel and captured three others carrying
about ?2 million. In conditions of virtual warfare with Spain, and with
tangible evidence that the wealth of the Spanish empire was indeed being
used to sustain France, the British government was again ready to look at
plans of attack on Spanish America. Blue-prints there were in plenty.55
But the most pressing advocacy again came from Popham and Miranda.
Miranda's plan was to use Trinidad as a base for a liberating expedition to
Venezuela; for this he required the support of a small British military and
naval force, and from mid-SeptemberPopham was urging Melville to hasten
its preparation.56He secured a private conference with Pitt and Melville,
' explaining all General Miranda's views', and he was instructed to consult
with the Venezuelan and submit a specific scheme. This was the origin of
Popham's memorandum of 14 October I804, an unremarkable document
and in itself evidence of nothing more than that these matters were being
ventilated by the government.57
In addition to the commercial argument for British intervention, Popham
urged the strategic importance of anticipating Napoleon in Spanish America
and of depriving France of an important source of revenue. He referred
certainly to Miranda's 'great object', the emancipation of South America,
but he also argued that while the conquest of the entire subcontinent was
out of the question 'the possibility of gaining all its prominent points,
alienating it from its present European connexions, fixing on some military
position and enjoying all its commercial advantages can be reduced to a fair
55 William Jacob, 'Plan for Occupying Spanish America', 26 Oct. I804, P.R.O., Chatham
Papers 30/8/345, a well-informed plan advocating a triple attack, from Britain on the Rio
de la Plata, from India on the Pacific coast, and from the West Indies on the Isthmus, for
emancipation, not dominion.
56
Popham to Melville, i8 Sept. I804, B.M., Add. 41080, ff. 46-9v. Popham wrote that even
should Miranda do no more than open channels of communication with Venezuela then
'Trinidad will be one of the finest possessions under the Crown and independent of its
military advantages and naval capabilities it will be the most liberal export channel for all
our manufactures that I am acquainted with ', Popham to Melville, II Oct. 1804, Add.
41080, if. 70-Iv.
57 Printed in 'Miranda and the British Admiralty, 1804-1806 ', American Historical Review,
vi (I90I), 509-I7.
expedition from the Cape, to be composed of ' 15,000 Blacks from the West
Coast of Africa ', its destination the Rio de la Plata, where the creoles would
fly to its assistance.62Yet another advised the occupation of a number of key
strategic and commercial bases, 'of Buenos Ayres and of Valdivia, with a
fleet of gun boats upon the Lake of Nicaragua and the Orinoco'.63 New
reinforcements were brought to do battle with the government. These were
mobilized by Sir John Hippisley, whose interest in the subject dated from
1779 when, as British agent in Italy, he was in touch with Spanish American
Jesuit exiles and advocated their use as instruments of British policy. From
early in I806 Hippisley pressed on Windham plans for an expedition to
liberate Spanish America and establish its independence.64His most distin-
guished recruit to the cause was the Earl of Selkirk, hitherto noted for his
colonizing activities in Canada. The well-informed paper which Selkirk sub-
mitted to Windham in June i8o6 'on the proposed expedition against
Spanish America', however unrealistic in its military details, displayed a
quality of political thought uncharacteristic of most contemporary plans.65
Selkirk advocated the liberation of the Spanish colonies, the replacement of
Spanish officials by a creole elite, respect for persons and property, and the
substitution of a more equitable fiscal and commercial system for the old
monopoly. 'The immense field of commercial enterprize which would thus
be opened to Britain', he thought, would constitute 'the most material
advantage', and this could be obtained without permanent conquest and the
creation of a new monopoly. Selkirk, a believer in Spanish American inde-
pendence, also believed that British interests would best be served not by the
establishment of a monarchy-the occupant of which would presumably not
be British-but by the creation of a number of small republics.
While the Ministry of all the Talents was being inundated with Spanish
American projects, Miranda and Popham, in their separate ways, took
matters into their own hands. Despairing of obtaining a decision from the
British government, Miranda left England in September I805 and in the
following year, from the United States, led an anarchic and abortive expedi-
62 J. Erskine to Windham, i8 May i806, B.M., Add. 37883, ff. 256-6I.
63 Plan of J. Sullivan, I806, B.M., Add. 37885, ff. I70-90.
64
Hippisley to Windham, 22 Aug. I794 and 22 Oct. 1803, B.M., Add. 37849, ff. 97-I03, 267;
Selkirk to Hippisley, 22 March I806, ibid., ff. 290-3; Lord St John to Hippisley, 24 March
i806, Add. 37884, if. 294-7. Hippisley was M.P. I790-6 and 1802-19 and a notable advocate
of Catholic emancipation; for his previous interest in Spanish America see Castlereagh
Papers, vII, 260-9.
65 'Observations on the
proposed expedition against Spanish America', 7 June i8o6, B.M.,
Add. 37884, f. II-22. Selkirk subsequently submitted his memorandum to Grenville and
Canning (15 Oct. 1806), both of whom considered the time inopportunefor British action in
Spanish America; see John Perry Pritchett, ' Selkirk's views on British policy towards the
Spanish American colonies, 8o6 ', Canadian Historical Review, xxiv (I943), 38I-96.
66 See 'Miranda and the British Admiralty, 1804-1806', American Historical Review, vi,
508-30; Castlereagh Papers, vii, 419-21.
67 Memorandum, i May I807, Castlereagh Papers, vi, 315.
68 Grenville to Auckland, 5 June i806, Historical Manuscripts Commission. Manuscripts of
I. B. Fortescue preserved at Dropmore (hereinafter cited as Dropmore Papers) (io vols.,
London, 1892-1927), vIII, 179.
69 John Turnbull to Miranda, 5 and 7 June i806, N.L.S., Cochrane Papers 2320, f. 16;
Vansittart to Windham, 22 Jan. i807, B.M., Add. 37885, f. 231; Windham to Grenville,
ii Sept. i806, Dropmore Papers, viii, 321.
70 Howick to Windham, 13 July I806, B.M., Add. 37847, f. 255; Dropmore Papers, vmII, 236.
71 See R. A. Humphreys, Liberation in South America, 1806-1827. The career of James
Paroissien (London, 1952), pp. 1-14, and H. S. Ferns, Britain and Argentina in the
Nineteenth Century (Oxford, I96I), pp. 47-50.
72 See Ricardo R. Caillet-Bois, 'Los ingleses y el Rio de la Plata, 1780-I806 ', Humanidades,
xxnIl (I933), I67-202; John Street, 'La influencia britanica en la independencia de las
provincias del Rio de la Plata ', Revista Historica, XIX(Montevideo, 1953), I81-257; Roberts,
Las invasiones inglesas, pp. 43-8, 53-6. 73 Dropmore Papers, vII, 209, 321; vIII, 302, 332.
with Popham) to Melville, 13 Sept. I8o6, N.L.S., Melville MSS o075, f. 82; Melville to
Davison, i8 Sept. I8o6, ibid., f. 86.
75 Resolution of the town of Manchester, 25 Sept. I8o6, B.M., Add. 34457, f. 40; letters to
Auckland, 2I Sept. and 9 Oct. I806, ibid., if. 38, 73.
76 Jacob to Windham, 24 Sept. I806, B.M., Add. 37884, f. I67.
77 See C. F. Mullett, 'British Schemes against Spanish America in 8o6 ', Hispanic American
Historical Review, xxvIf (947), 269-78; Dropmore Papers, vmi, 386-7, 415-20.
78 Memorandum, 15 Feb. I807, Supplementary Despatches, vI, 59-60; Dropmore Papers, Ix,
41-4. See also B.M., Stowe 307, ff. 250-3, 'Spanish America. Calculation of time for the
different parts of a combined attack'.
the British position in the Rio de la Plata. But this too was hopeless. General
Whitelocke, commanding a further expedition, failed to recapture Buenos
Aires and agreed to evacuate Montevideo. His military conduct was con-
demned in England as 'extravagantly incapable and criminal', and so it
was. But his own explanation was not without point: 'I shall evacuate a
province which the force I was authorized to calculate upon could never
maintain, and which from the very hostile disposition of its inhabitants was
in truth not worth maintaining '.7
British statesmen and experts all professed that the disaster in the Rio de
la Plata confirmed the view or taught the lesson that Britain would only
succeed in Spanish America with a policy of emancipation.80But the real
criticism of British policy in 80o6-7 is that it fell between two stools, pro-
claiming neither emancipation nor dominion. Grenville, far from promoting
an imperial policy, saw Buenos Aires as little more than a bargaining
counter at a peace table.81His plans for Mexico and Venezuela, on the other
hand, in so far as he had any, did not exclude the possibility of their inde-
pendence.82The policy of this administration, indeed, was marked by neither
imperialism nor liberalism but by utter improvisation.
It was precisely this lack of principle which outraged the serious advocates
of a Spanish American policy and prompted a re-appraisalof Britain's role
in the subcontinent. The Ministry of all the Talents resigned on I8 March
1807, and in the new administration, formed by the Duke of Portland,
Castlereagh occupied the war and colonial office. Castlereagh had already
shown an interest in Spanish America in November i806 when, moved per-
haps by the French victory at Jena, he had sought Wellesley's opinion on
the prospect of attacking Mexico. Now, in a memorandum of i May 1807,
written when it was still assumed that Whitelocke's reinforcing expedition
would recapture Buenos Aires, he sharply criticized the late administration's
vagueness of intent in the Rio de la Plata and advocated instead a policy
which would accord with the interests of the people of South America, a
79 Whitelocke to Windham, Io July
18o7, B.M., Add. 37887, ff. 67-73; Auckland to Grenville,
23 Nov. 1807, Dropmore Papers, Ix, 150-i.
80 E. Corke to Auckland, 26
Sept. 18o7, B.M., Add. 34457, f. 357; Lord Temple to Auckland,
2 Oct. 80o7, ibid., ff. 369-72; Auckland to Grenville, 23 Nov. 1807, Dropmore Papers, ix,
150-I.
81 See reference in n. 13 above; see also Grenville to Earl of Lauderdale, 22
Sept. I806, and
Grenville to Howick, 29 Sept. 80o6,Dropmore Papers, viI, 352, 367.
82 This, at any rate, was the
assumption of Wellesley, memorandumof Nov. i8o6 and I5 Feb.
I807, Supplementary Despatches, vI, 50, 59-60. The attempts of historians (for example,
Roberts, Las invasiones inglesas, 82, I86, and Street, Revista Histdrica, xix, 21I-I2) to
contrast a Tory policy of emancipation with a Whig policy of conquest are not supported by
a sufficient amount of continuous evidence; it would be difficult to say how far Melville's
policy was accepted by Tory cabinets.
policy which would relieve Britain ' from the hopeless task of conquering this
extensive country against the temper of its population', and would at once
deprive the enemy of vital resources and provide Britain with important
markets.83 By the end of December I807 the matter had acquired more
urgency. The Portuguese court had fled to Brazil. Spanish independence of
France seemed more tenuous than ever. From his new position of strength
in the Iberian peninsula Napoleon might next strike across the Atlantic, not
only subverting the Spanish colonies but also endangering Brazil. Castle-
reagh, therefore, intensified his efforts to persuade the cabinet to act. He
thought that Montevideo, recklessly abandoned, might be easily recovered.
In this case, he argued, Britain, without committing itself to independence,
should disavow conquest, by declaring that the only objective was 'to estab-
lish a commercial intercourse with the country, under the protection of the
military occupancy of an armed post'.84 The proposal was ambiguous, of
course, but Castlereagh was probably deferring to cabinet opinion, which
feared the effect of Spanish American independence on the Portuguese
position in Brazil.
Meanwhile, Castlereagh canvassed further opinion. Sir Arthur Wellesley
was again consulted and he now came out explicitly in favour of indepen-
dence. 'From what has lately passed at Buenos Ayres ', he wrote, ' and from
all that I have read of these countries, I am convinced that any attempt to
conquer them, with a view to their future subjection to the British Crown,
would certainly fail.' He saw no alternative to an independent regime,
endowed with a monarchy and a manageable legislature, with suffrage based
on age and property qualifications. The target for British action, he advised,
should be first Mexico, then Venezuela.85 Castlereagh received complemen-
tary advice from General Beresford, who had emerged from the fiasco of
Buenos Aires with his reputation intact and now advocated its recapture; it
would be an illusion, he argued, to expect creole support for a policy of
conquest; success could only be guaranteed with an offer of independence.86
Miranda too added his voice to the growing chorus, believing that now at
last, with a government favourably disposed towards emancipation, his goal
was in sight.87
By the beginning of I808, therefore, most of the major obstacles to British
intervention in Spanish America appeared to have been removed. The
83 Memorandumof I May 1807, CastlereaghPapers, vI, 3I4-24.
84 Memorandumof 21 Dec. 1807, ibid., vII, 98-9.
85 Memorandumof 8 Feb. I808, SupplementaryDespatches, vi, 62-6.
86 Beresford to
Castlereagh,23 Jan. I808, P.R.O., W.O. I/354.
87 Miranda to Melville,
I7 March I808, N.L.S., Melville MSS w.I.c.I.; see also Castlereagh
Papers, vni, 405-12.
danger from French ideology was regarded as a thing of the past. The issue
of conquest versus independence seemed to have been resolved. And as, by
the end of 1807, the whole of continental Europe with the exception of
Sweden had been forced into Napoleon's blockade, the commercial argu-
ment for intervention appeared unanswerable, not least to mercantile
pressure groups. There remained only the question whether Spain could be
reclaimed from the French cause. This too seemed to be answered in the
catastrophic events of the next few months. By May 80o8,with a French
army in Madrid and the Spanish monarchy in collapse, Spain seemed lost
beyond recall. Castlereagh now advised the government that it should take
immediate steps to prevent the Spanish colonies from suffering the same fate
as Spain herself, and at last he had an attentive audience.88It was decided
to assemble an expeditionary force at Cork, and by I June its commander,
Sir Arthur Wellesley, was making preparations for its departure. He was
instructed to join General Spencer's force near Cadiz, and if circumstances
were not propitious for intervention in the peninsula the joint force was to
proceed to attack Spanish America. The exact destination of the expedition
cannot be determined, for the claims of Mexico, Venezuela, and the Rio de
la Plata had all been canvassed and it is possible that more than one point of
attack was envisaged.89Nor can we be certain that undiluted independence
was the message its commander carried for Spanish Americans. These
uncertainties can never be resolved, for the final orders were never given.
The Spanish uprising against the French invaders transformed the situa-
tion and removed one of the major pre-conditions of British intervention in
Spanish America. On 8 June agents of the Spanish resistance movement-
representing, unlike Miranda, a resistance which had already begun-
approachedthe British government and were quickly assured of its assistance.
'As, by the insurrection in the Asturias', wrote Castlereagh, 'some prob-
ability of restoring the Spanish monarchy is revived . . . it is wished to
suspend any measure tending to divide and therefore to weaken that mon-
archy.' 90 On 4 July Britain published a formal proclamation of peace with
Spain, and in these circumstancesWellesley's expedition sailed not to secure
the independence of Spanish America but to restore the independence of
Spain.
Britain's disavowal of intervention in Spanish America in i808 was based
on powerful considerations long inherent in her policy. Equally powerful,
88
CastlereaghPapers, vI, 365-7.
89 Melville to Castlereagh, 8 June i8o8, Castlereagh Papers, vII, 442-8; Wellesley, memo-
randum of 6 June I808, SupplementaryDespatches, vI, 74, 78-9, 80-2.
90 Castlereaghto Duke of Manchester,Governor of Jamaica, 20 June 18o8, CastlereaghPapers,
VI, 375.
however, had been the demand for new commercial outlets. If, as many
assumed, Britain faced economic disaster unless she found alternative mar-
kets, how can we account for British restraint in Spanish America in the
critical years from I806 to 1808? The answer is that the economic argument
was never as strong as it appeared, even after Napoleon's Berlin Decree.
British commercial policy towards Spanish America was to a large degree
resolved without the need of direct intervention.
Already from I796 trade with the enemy in Spanish America had been
encouraged by ministers and practised by merchants. The main channel of
trade continued to be the free ports in the West Indies, especially those of
Jamaica. In the first nine months of i806 bullion imports alone into Kingston
amounted to i,527,000 dollars, and to 1,412,000 dollars in the first six
months of 1807; and the value of Jamaica's exports between July 1807 and
July i8o8 was about ?I million sterling.91The free port system, moreover,
had been augmented by the acquisition of Trinidad, a new entrepot for
exports and inroad into the resources of Venezuela and New Granada. In
1799 Governor Picton reported that trade with the mainland had 'increased
as to become an object of importance, taking off British manufactures to the
amount of ?i,ooo,ooo sterling annually'.92
Some British merchants, it is true, wanted more than an indirect trade
with Spanish America. And there was hardly any doubt that, had she so
wished, Britain could have forced direct commercial relations on the Spanish
colonies during the war owing to the latter's isolation from their metropolis.
John Turnbull, Miranda's financial associate, who before the war had been
active in the Cadiz trade, was one of those anxious to develop a commerce
in neutral vessels sailing directly to the Spanish colonies. But the British
government long opposed such a trade, for it was not anxious to provide
facilities for neutral vessels or outlets for Spanish exports, and preferred to
encourage the contraband trade through the free ports, which were supplied
from Britain in British vessels. There were further reasons why the Board
of Trade refused licences to trade between Spain and her colonies: a direct
trade in neutral vessels was thought to be an uncontrolled trade, for there
would be no means of ensuring that the conditions of the licence-that
cargoes should contain a proportion of British goods, for example, or that
the returns should be made in specie to British ports-were fulfilled.93
91
Armytage, The Free Port System, pp. 92-123, i6o.
92 Picton to Dundas, 26 Jan. I799 and 21 April 1799, B.M., Add. 36870, if. i, i6v-I7.
Governor Hislop, however, reported exports for I805 at ?200,000; Armytage, The Free
Port System, p. 92.
93 Paper by the Earl of Liverpool relative to the application for leave to trade with the
Spanish colonies made by Messrs. Bird, Savage and Bird, Nov. I799, B.M., Add. 38355,
f. III-I2.
An exception was made, however, for trade with the Rio de la Plata and
the Pacific coast of South America, areas which hardly came within the
influence of the free ports, 'in order to encourage the exportation of British
manufactures, and to receive in return dollars, hides, tallow, and other raw
materials, essentially necessary to the prosperity of the country '.9 For its
part the Spanish crown was equally ready to issue licences, often to aristo-
cratic favourites like the Duke of Osuna, to export to this area foreign goods
from foreign ports. The licences granted by the British government for trade
with these colonies up to I806, though limited in number, effected signifi-
cant breaches of the Spanish monopoly. One type of operation was that of
Antony Gibbs, an English merchant in Cadiz, who on his return to England
at the outbreak of war obtained a licence, subsequently accompanied by a
Spanish licence, authorizing him to complete a transaction which he had
begun before the renewal of hostilities, namely, the export from Cadiz to
Lima of a sizeable cargo of woollen cloth; for this he freighted a Spanish
vessel which sailed from Cadiz in December I8o6.95 Licences were also
granted for the export of goods to Spanish South America in neutral vessels
from English ports, transactions which the Spanish government itself sanc-
tioned, to the dismay of the monopolists in Buenos Aires."6The trade to the
Rio de la Plata under the licensing system, though not large, was regarded
as lucrative, and could no doubt have been expanded had exporters paid
more attention to consumer demand.97
Spanish America, therefore, along with the United States and the West
Indies, already provided an important compensating market for Britain
during the war with Napoleon. Up to i8o6 the war had damaged but had
not basically altered the British trading system. A year of prosperity in 1802
was followed by a period of depression in 803-4, but I805 saw some
improvement and by i8o6 British trade was buoyant again.98The situation
only began to worsen appreciably in late I8o6, when Napoleon's victory
over Prussia closed northern Germany to British exports. This development
would have been critical had not Britain possessed expanding outlets else-
where, principally in the New World. Exports to the United States rose
from i8.8 per cent of total exports in the period 1803-5 to 23.6 per cent in
94 'Observationson the licensedtrade with the Spanishcolonies', 1805, B.M., Stowe 307,
ff. 254-5.
95 Crouzet, L'Economie Britanniqueet le Blocus Continentale, I, I6o.
96 See the complaints of Santa Coloma about
English and Hamburg shipments and their silver
returns in his correspondenceduring I803-5, in Gandia, Buenos Aires colonial, pp. 56, 65-6,
69, 74.
97 'Actual State and Exports from Buenos Ayres and Paraguay', unsigned memorandum,
c. i8o6, B.M., Add. 37885, ff. i68-9v.
98 Crouzet, L'Economie Britanniqueet le Blocus Continentale, I, i6I, 206.
1806; and exports to all parts of the world rose from 34-8 per cent of total
exports in 1803-5 to 40.2 per cent in 1806. The expansion of trade to 'all
parts of the world' in 1806 is accounted for principally by exports to the
West Indies, which also fed the free port trade with Spanish America. It is
also explained by the opening of direct trade between Britain and the
Spanish colonies. And this in turn was due, not to the spectacularassault on
the Rfo de la Plata in 1806-7, but to the extension of the licensed trade with
Spanish America, a development which preceded Popham's unofficial
expedition and owed much to the policy of the Grenville government.
From February 1806 the new administration was forced to reconsider the
traditional opposition to a direct trade with Spanish America, partly because
of merchant pressure, partly because of the evident advantages to be ob-
tained. A number of merchants, some of whom had already received Spanish
permits, were requesting British licences, especially for trade with Vera
Cruz. Lord Auckland, President of the Board of Trade, was favourably
disposed, on the ground that 'an exchange of British manufactures for
dyeing woods, cochineal, and dollars is so peculiarly expedient in our actual
circumstances'." Grenville agreed, and on 21 February the Privy Council
decided to issue export and import licences for trade with Vera Cruz.' The
decision was explained by the desire to stimulate exports; as Auckland
remarked, 'encouragement in that respect is very important, for I hear that
some of our manufacturing towns (more especially in Lancashire) are suffer-
ing much under want of orders for export'.2 Almost immediately the
government was pressed to authorize more complex operations. A certain
J. Taylor, recommended to Auckland by Nicholas Vansittart as 'a friend of
mine in the City' and acting on behalf of a business group headed by the
house of Fermin de Tastet and Co., requested leave to trade with Spanish
America, having already procured a Spanish licence. Taylor sought the pro-
tection of a licence for the purchase of bills at Madrid drawn on the royal
treasuries in Spanish America and payable in bullion returns to Britain.3
After some hesitation Grenville and Auckland agreed, on condition that
Taylor and his associates exported to the Spanish colonies British manufac-
tures equal in value to the bills of exchange. And on 3 June Fermin de
Tastet and Co. received two licences authorizing them to buy in Madrid
bills drawn on Mexico and Buenos Aires to the amount of ?40,000 each,
and to transportthe bullion to Jamaicaor Britain.4
Another financial group headed by W. Gordon and J. Murphy concluded
in March i806 a contractwith the Treasury for the supply of dollars. Murphy
then secured from the Spanish government orders on the colonial treasury
for a sum of 10 million dollars, on condition that he obtained British licences
for ten neutral vessels to carry cargoes to Spanish America consisting partly
of British and partly of Spanish goods, the returns to be in either colonial
produce or precious metals and to be imported into a British port. After
serious hesitation, caused by the size of the operation and the amount of
Spanish goods involved, the British government eventually agreed (6 June
1806) to grant Gordon and Murphy the ten licences requested for trading
with Vera Cruz, and after various vicissitudes the 10 million dollars reached
British ports.5 Licences such as these were obviously issued to procure vital
bullion supplies.6 In effect they allowed Spain to transfer in time of war
funds from Spanish America to Europe, and in the case of the Gordon and
Murphy operation even authorized direct trade between Spain and her
colonies. At the same time, however, operations on this scale greatly
expanded direct trade between Britain and Spanish America, with the con-
nivance of Spain; indeed it would seem that a great part of Britain's trade
with the Spanish colonies in the period I806-8 was made under the licence
of the Spanish crown. This 'secret trade', as contemporaries called it,
affronted the British navy, especially when it was ordered to refrain from
molesting enemy vessels or even to escort them against the possibility of
French attacks.7 The admiralty strenuously objected to protecting the trade
of the enemy, but this was also the trade of Britain and exports took
precedence over prize-money.
It is difficult to estimate the total value of the licensed trade to Spanish
4 P.R.O., P.C. P.C. 4/14/61; Grenville to Auckland, i8 March I8o6, B.M.,
2/170/310-12,
Add. 34456, f. 433; Auckland to Grenville, i6 March, 21 March 1806, Dropmore Papers,
vIII, 59, 63.
5 P.R.O., P.C. 4/15/285-304; Draft contract, Gordon and
Murphy, Dec. I8o5, B.M., Add.
38766, if. i-II; Grenville to Auckland, 5 June I806, Dropmore Papers, viII, I78-9; Auck-
land to Grenville, 5 June, 28 Oct. and 29 Oct. I8o6, ibid., viII, 178-9, 405, 407-8. Gordon
and Murphy had begun their negotiations with the previous administration and the opera-
tion had been anticipated by the huge transaction authorized by Pitt, whereby the con-
sortium of Ouvrard, Hope and Baring procured dollars at Vera Cruz and transportedthem
in British warships; see memorandum of Sir Francis Baring to Pitt and Huskisson, Dec.
1805, B.M., Add. 38738, if. Io3-Io; Andre Fugier, Napoleon et I'Espagne, I799-I808
(2 vols., Paris, 1930), I, 283, ii, 8-22, 52-60.
6 See Crouzet, L'Economie Britannique et le Blocus Continentale, I, 120-I.
7 T. Grenville, Admiralty, 26 Feb. 1807, B.M., Add. 34457, ff. 231-2, objecting to having
to provide ' the protectionof a frigate to the port of Valparaiso'.
objective, but the situation was not so desperate that the commercial argu-
ment was likely to outweigh other factors. And when, in June 1808, the
reversal of alliances caused Britain to step back from the brink of war in
Spanish America, she was able to do so without serious economic conse-
quences. British policy had shed other prejudices in these years, notably the
quest for conquest, and dominion. As for Spanish American independence,
if there was any lesson to be learnt from the events of this period it was that
British policy should follow, not anticipate, events in Spanish America itself.
The experience acquired in the years 1783-I808, therefore, prepared Britain
in some degree for the great age of Spanish American independence.