memory. Nevertheless, he was haughty, lived luxuriously, and certainly was not incorruptible. He was noted for his ability to get hold of curious contrivances which he presented to the emperor; but in doing so he set an example to other provincial officials to be extravagant and to compete for imperial favor. Chao-lien does not explain that Li's ability to get these contrivances was due to his long term of service at Canton in charge of the foreign trade.
Canton had been a port for foreign trade since the seventh century when Emperor Yang-ti 煬帝 of the Sui dynasty established there a Superintendent of Customs. In modern times European contact with Canton began about 1516 when the Portuguese arrived, and some forty years later established a permanent settlement at Macao. The Portuguese were followed in the seventeenth century by the Dutch, English, French and others. Nevertheless, from time to time foreign trade was forbidden at Canton. In 1683, after Taiwan was conquered, Chinese ports were re-opened to commerce and in 1685 a customs house was established at Canton. Following an old practice, foreigners were allowed to trade only with specified merchants, some twenty in number. In 1745 the authorities selected from them a few "security merchants" (保商) who, by their wealth, could guarantee the payment of taxes. Foreigners, especially the English whose volume of trade gradually surpassed others, tried to avoid such restrictions. In 1755 Mr. Flint (洪任 or 洪任輝), an Englishman, managed to trade at Ningpo and others followed him. However, in 1757 Emperor Kao-tsung restricted by imperial decree all foreign trade (with the exception of Russian) to Canton, presumably in consequence of a plea from the officials and merchants of that port. In 1759 Flint returned to Chekiang to test this decision, but was refused a landing. He proceeded to Tientsin and there delivered a plea accusing Li Yung-piao 李永標, Superintendent of Customs at Canton, of irregularities, including the collection from foreigners of more money than was his due. Flint was escorted to Canton by an imperial commissioner who, together with Li Shih-yao and another official, investigated his accusations against Li Yung-piao, with the result that the latter was found guilty of failure to check the corrupt practices of his subordinates and servants.
At this time Li Shih-yao, as governor-general, began to be interested in foreign trade. The Flint case showed what trouble a foreigner could cause, particularly if he spoke the language. A Chinese who taught foreigners the language was beheaded, and Flint was sentenced to a three-year imprisonment at Macao. Li Shih-yao suggested to the throne five principles for regulating foreign trade at Canton and these were immediately approved. Then he issued nine rules regulating the life of foreigners in the city, such as restricting their movements to the premises of the factories, forbidding them to retain women or arms in their quarters, and holding the Hong merchants responsible for their conduct. In the following year (1760) a corporation of nine merchants was established to monopolize the European trade which came to be known as Co-hong 公行 (one such corporation had been established in 1720 but lasted only a year). During his third term as governor-general at Canton (1767–77) Li Shih-yao was instrumental in bringing about the dissolution of the Co-hong for about a decade (1771–80), but for a time after he left Canton it was virtually re-established (1780–82). It is said that his decision to dissolve the Co-hong was the result of a bribe of 100,000 taels paid to him by the English through a merchant. Thus, besides receiving his due share of "presents" according to regulations, he was enriched by other expedients. At any rate, owing to the European trade, official posts at Canton were regarded for more than a century as among the most lucrative in the empire, and Li Shih-yao, being the highest official there for more than fourteen years (longer than any other governor-general in that port in the Ch'ing period), probably amassed a fortune. It may be assumed that it was this fortune that prompted Ho-shên, or even Emperor Kao-tsung himself, to have Li Shih-yao incriminated time and again so that his property might be confiscated. It is perhaps significant that Sun Shih-i [q. v.] and Fu-k'ang-an, both henchmen of Ho-shên, served successively as governors-general at Canton.
[1/329/9b; 2/23/13a; 3/26/1a; 2/78/10a; 3/265/37a; 34/22/10a; Pritchard, E. H., Anglo-Chinese Relations During the Seventeenth and Eighteenth Centuries (1929); Liang Chia-pin 梁嘉彬, 廣東十三行考 Kwangtung shih-san-hang k'ao (1937); Shih-liao hsün k'an (see Lin Tsê-hsü) nos. 3–6, 9, 10, 12, 13; Stifler, Susan Reed, "Language Students of the East India Company's Canton Factory" in Jour. N. Ch. Br. Royal Asiatic Society 1938, pp. 48–50.]
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