CHAPTER 3
INDO-ARMENIAN ECONOMIC
RELATIONS
Armenian
Merchants and European East India Companies
In the 17th century the East India Company found Armenians firmly settled in
Agra, Delhi, Calcutta, Bombay and other places.
The representatives of the East India Company studied the trade methods of the
Armenian merchants. Realizing the position and connections of the Armenians
in India, the European merchants were initially trying to establish friendly
and fruitful relations with them. Armenians in this period played a certain
role not only in the economic but also in the political life. They were well
aware of the habits and customs of the Indian people, as well as the Eastern
languages. They enjoyed a big repute among the Indian authorities. Not only
British, but also French and Dutch East India Companies in the initial stage
of their activities in India, were looking for partners among the Armenian merchants.
During the negotiations with the local authorities Armenian Khojahs played the
role of mediators. In the 17th century the Armenians had such a big influence
and position that the Europeans used their connections to penetrate deeper
in the Indian community.
Here we shall cite a few examples.
When in 1651 the British
went to Shah Jahan to seek permission for building a factory, the famous Armenian
merchant Agha Sarhad was appointed one of the heads of this delegation.
In 1669 Margar Avanchintz (Margar Avag Sheenents), an Armenian of great influence,
was dispatched by the French East India Company as an envoy to the court of
Abdulla Kutub Shah, the King of Golkonda. The Company wanted to establish factories
and obtain trading privileges. The French got the privilege of trading with
the kingdom to purchase whatever merchandise was required, to employ manufacturers
and obtain license to establish a factory at Masulipatam on the Coromandel Coast.
Margar successfully conducted the negotiations and obtained a Firman by which
the French East India Company was privileged to trade to all parts of King's
territory, without paying any export or import duties. In Masulipatam Margar
arranged for the construction of the factory and was appointed as a President.
When Job Charnock started an English colony in Calcutta in the end of the 17th
century there was a big need to build a factory and a fort. For this the Moghul
Emperor’s permission was required. The British were well aware that the Armenian
merchants had always been in favour of the Moghul Emperors because of their
knowledge of Persian, business integrity, shrewdness and adaptable ways. So
they chose a wealthy and eminent Armenian merchant in the Armenian community
in Calcutta, Khoja Israel Sarhad. As a result of negotiations between Prince
Azim-ush-Khan and Khojah Sarhad, in 1698 the British obtained letters-patent
for the modest sum of Rs.16,000 which entitled them to purchase the renting
rights of the three villages of Calcutta, Sutanuti and Govindpur from the holders.
In 1713 the British again needed the services of Khojah Sarhad. This time they
asked to negotiate for an English embassy to the court of Emperor Farrukh Siyar
at Delhi. To use Khojah Sarhad’s skills and abilities further the British appointed
him as a member of the Embassy in Delhi in 1715. This Armenian was also mainly
instrumental in obtaining the historic Grand Firman, which conferred certain
privileges on the British.
In 1699 the Ambassador of England Sir William Norris was sent to India by King
William III to Emperor Aurangzeb to obtain trade and other privileges. Prior
to getting audience to the Emperor, Sir Norris started collecting information
regarding official visit procedure in the Court. Detailed and useful information
and instructions were given to him by an Armenian, Johannes Pottvleet, who had
been twice at the Emperor's Camp and had lived there some time in attendance
on the Dutch envoy.81
The other reason of cajoling the Armenian merchants by the East India Companies
was the huge profit which they got from Armenians for transporting their goods.
Initially the Armenians did not possess ships. So they hired European vessels
for this purpose and paid enormous transportation tax.
The overland route through
Persia was not safe. The founding of the sea route resulted in the development
of sea trade in the 17th century. Before the competition between the Europeans
and Armenians started, the Armenians did not have their own ships, and they
had to rely on European and Asian seafarers. Because of this, the Armenian merchants
suffered heavy losses, they had to pay a big transportation tax, and these seafarers
intentionally were delaying the transportation of their goods. In a short period
of time Armenian merchants either bought or built their own ships. The captains
of these ships were Armenians. These Armenian ships were passing on under the
Armenian red-orange flag. All the ports of Asia and Europe were open in front
of them. The Europeans did not like such kind of peaceful competition.
They began to oust the Armenian ships from the Indian Ocean.
| <<< previous page | next page >>> |