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Mozambique's Chartered Companies: the Rule of the Feeble1

Published online by Cambridge University Press:  22 January 2009

Extract

Pressed by rival imperial powers and financially weak herself, Portugal initiated in the 1890s an experiment in governing large areas of Mozambique cheaply through the means of two chartered companies, the Companhia do Niassa and the Companhia de Moçambique. This experiment proved doubly unsuccessful. In the first place the two companies failed to provide the development capital for Mozambique ardently desired by Portugal's government. Instead, they devoted their energies to maximizing profits through the systematic exploitation of the African populace. Secondly, the fact that shares in these companies could be purchased by private persons led foreign governments, notably those of Britain and Germany, to use these companies as proxies to further their own imperial interests at Portugal's expense. Only with the corning to power of António Salazar in the late 1920s did the Portuguese government feel powerful enough to move against the anachronistic chartered companies and terminate the experiment.

Type
Research Article
Copyright
Copyright © Cambridge University Press 1976

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References

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13 Hammond, , Portugal and Africa, 147–8Google Scholar. Henceforth the Companhia do Niassa will be called the Nyassa Company. In 1892 the Portuguese also granted extensive rights to the Companhia da Zambesia, which was founded upon the remnants of d'Andrada's original Zambezi valley concessions of the late 1870s. This company attracted considerable investments from such firms as the Oceana Consolidated Company and the North Charterland Exploration Company. While it did not possess rights of sovereignty, the company did have immense powers over the area north of the Zambezi river, between the coast and Zumbo. See I.D. 1189, Manual of Portuguese East Africa, 163–4.

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35 Report for the Year 1900 on the Trade of Mozambique (Foreign Office Annual Series No. 2608), 6.

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46 See Report for the Year 1913 on the Trade and Commerce of Lourenco Marques and Other Portuguese Possessions in East Africa (Foreign Office Annual Series No. 5385), 42.

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49 CO. 525/59, Memorandum on the Nyassa Company, encl. in Williams, R. to Crowe, E., 22 Apr. 1914.Google Scholar

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52 F.O. 371/2992, MacDonnell, E. to Long, , 4 Sept. 1917Google Scholar, encl. in Long, to , F.O., 29 Nov. 1917.Google Scholar

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54 F.O. 367/237, ‘Report on Portuguese Nyassaland’, encl. in Maugham to F.O., 29 Nov. 1911.

55 Ibid. Maugham reports that certain Yao chiefs sent slaves from the central and northern parts of the Nyassa Company's territory to ‘the markets of the Persian Gulf. Especially prized were youths castrated in Mozambique and sold in the Gulf as eunuchs. That this trade could exist as late as 1911 was due to the fact that the British had virtually withdrawn their anti-slave trade squadron from the East African coast a few years earlier, leaving the way open for a recrudescence of the traffic. This report indicates that Duffy is incorrect in implying that Portuguese naval activity brought an end to the trade in 1902 (A Question of Slavery, 160–1).

56 F.O. 367/237, F.O. to C.O., 14 Aug. 1911, reporting Freire d'Andrade's remarks.

57 Thus, for example, when the Portuguese Government's Intendente in the company's territories, Dr. Temudo, attempted in 1912 to launch a campaign against the company's abuses, he was dismissed at the behest of powerful figures in Lisbon. F.O. 371/2992, MacDonnell, E. to Long, , 14 Sept. 1917Google Scholar, encl. in Long, to , F.O., 24 Sept. 1917.Google Scholar

58 For example, one official, Sanchez, was reported to have crucified women on the shores of Lake Malawi when they resisted his edict to work. Another at Arimba compelled women with infants at breast to labour in the fields without supplying food to them, while another official, at the coast, paid his forced labour with used gramophone needles. CO. 525/59, Hemming, to Bostock, , 7 Feb. 1914Google Scholar, encl. in Bostock, to MacDonnell, E., 25 Feb. 1914Google Scholar, encl. in MacDonnell, E. to Grey, , 9 Mar. 1914Google Scholar; F.O. 371 /2992, MacDonnell, E. to Long, , 14 Sept. 1917Google Scholar, encl. in Long, to , F.O., 24 Sept. 1917.Google Scholar

59 C.O. 525/59, Hemming, to Bostock, , 7 Feb. 1914Google Scholar, encl. in Bostock, to MacDonnell, E., 25 Feb. 1915Google Scholar, encl. in MacDonnell, E. to Grey, , 9 Mar. 1914Google Scholar. H. J. Read of the Colonial 26 AH xvii Office minuted, ‘It is to be hoped that the general public will become aware of this disgraceful state of affairs & that pressure will be brought to bear as in the case of the Congo,’ while Harcourt agreed that the situation was ‘disgusting’. Minutes of Read, 21 Apr. 1914, and of Harcourt, 17 Feb. 1914. Consul E. MacDonnell explained why the public was being kept in the dark: ‘The scandalous state of affairs which at present exists has for many years been kept from the public through the all-powerful influence of Dr. Centeno in Lisbon, and the apparently strong social and financial position of the British Board of Directors.’ MacDonnell, E. to Grey, , 31 Mar. 1914Google Scholar. Some years before, in 1906, Marks had been charged with being involved in the forced labour business in Mozambique. He was acquitted by Lord Selborne, the High Commissioner, who assured Whitehall that ‘Mr Marks is a man in whose honour and respectability I have complete confidence’. F.O. 367/19, Selborne, to Elgin, , 16 July 1906.Google Scholar

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62 F.O. 63/1250, MacDonnell, H. to Rosebery, , 2 Apr. 1893Google Scholar. See Robinson, Ronald and Gallagher, John, with Denny, Alice, Africa and the Victorians (London, 1963), 410–49Google Scholar, for a discussion of British motives, and Butler, Jeffrey, ‘The German Factor in Anglo-Transvaal Relations’, in Gifford, Prosser and Louis, Wm. Roger, eds., Britain and Germany in Africa: Imperial Rivalry and Colonial Rule (New Haven, 1967), 191203Google Scholar, for a consideration of Germany's role in Mozambique.

63 F.O. 63/1359, MacDonnell, H. to Salisbury, , 24 Feb. 1897Google Scholar. The British feared that the Portuguese might grant concessions in Mozambique injurious to British paramountcy throughout southern Africa in order to obtain French loans. Chamberlain at the Colonial Office and Bertie at the Foreign Office were strong advocates of a firm policy towards Portugal to prevent the growth of French influence in the area. See, for example, F.O. 63/1359, Bertie, to Selborne, , 8 Apr. 1897Google Scholar; Memorandum of Chamberlain, J., 18 June 1897Google Scholar; Chamberlain, to Bertie, , 24 Nov. 1897Google Scholar; and Bertie's minute of 25 Jan. 1898, among others.

64 The French takeover of the company resulted largely from Ochs's disenchantment with his position in Mozambique. In 1896 he had attempted to persuade the Portuguese to allow a merger of the Mozambique Company with the Companhia da Zambesia, in which he was a powerful force. Aware of the denationalization occurring south of the Zambezi, the Portuguese refused. Subsequent to this rebuff, Ochs lost interest in the Mozambique Company and approached Dr Leyds, Kruger's Secretary of State, in an unsuccessful attempt to sell his shares to the Transvaal. F.O. 63/1311, Thornton, to Salisbury, , 7 Sept. 1896Google Scholar; Hammond, , Portugal and Africa, 263.Google Scholar

65 F.O. 179/340, Thornton, to Salisbury, , 26 Sept. 1898Google Scholar. The other twelve thousand shares were deposited with the Portuguese government, which had a right to 10 per cent of all share issues.

66 F.O. 179/340, MacDonnell, H. to Salisbury, , 19 Jan. 1898.Google Scholar

67 F.O. 179/340, MacDonnell, H. to Salisbury, , 5 Nov. 1898Google Scholar. Nothing was done along these lines, however, perhaps because of the outbreak of the South African war, and French control remained for several years.

68 The agreement was that Portugal should take a loan from Britain and Germany that would be guaranteed by the customs revenues of the Portuguese colonies. The areas assigned to the lenders would ‘amount to a declaration of future ownership of the part of the Power accepting the security’. Having agreed, they coolly offered the Portuguese a loan, pushing it upon them with considerable vigour. The Portuguese government, wary of their intentions, resisted the pressures effectively. F.O. 63/1359, Salisbury, to Gough, , 17 June 1898Google Scholar; MacDonnell, H. to Bertie, , 14 June 1898Google Scholar. Also F.O. 179/340, Thornton, to Salisbury, , 30 Sept. 1898Google Scholar, in which the British Charg6 d'Affaires relates the pressures he has put upon the Portuguese Prime Minister to accept an Anglo-German loan. Thornton's report casts serious doubts upon subsequent British claims that they really did not want Portugal to accept a loan and that they had been forced to accept the loan stratagem because of German threats. See, for example, F.O. 800/176, Bertie, to Grey, , 12 Jan. 1912Google Scholar(Private Papers of Sir Francis Bertie). For a discussion of the Anglo-German agreement, see Hammond, , Portugal and Africa, 245–71.Google Scholar

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84 C.O. 525/59, Grey to Harcourt, 30 Mar. 1014. The purchases were carried out by proxies under the direction of Dr W. C. Regendanz, who represented a syndicate of German banks and shipping lines and who enjoyed the full support of the German Foreign and Colonial Offices. The final deal was completed on 28 May 1914, with Pieter Vuyk, a Dutchman, the chief proxy for the Germans. Pick, F. W., Searchlight on German Africa: The Diaries and Papers of Dr. W. Ch. Regendanz (London, 1939), 128.Google Scholar

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100 F.O. 371/3371, Memorandum of Malkin of a Meeting of Representatives of the Board of Trade, the Treasury, the Colonial Office and the Foreign Office, 31 Feb. 1918.

101 C.O. 525/81, Phillips to Read, n Sept. 1918.

102 C.O. 525/85, Read [C.O.] to Barstow [Treasury], 11 Aug. 1919. For a full discussion of the railway and related projects, see Vail, , ‘Imperial Slum’, 89112.Google Scholar

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120 F.O. 371/8375, Governor of Tanganyika to C.O., 9 Oct. 1922.Google Scholar

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123 F.O. 371/8377, Hall-Hall, to , F.O., 13 Apr. 1922.Google Scholar

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129 F.O. 371/13423, Osborne, to , F.O., 22 June 1928Google Scholar. The Colonial Office, in the old Chamberlain-Milner tradition, resisted initially, but the Foreign Office was unimpressed. When Lord Kylsant tried, in 1929 to raise the German bogey, the Foreign Office was sceptical of the danger, in spite of Amery's apprehensions. The fall of Amery and the coming to power of Lord Passfield in 1929 at the Colonial Office ended its resistance to the changes. See also F.O. 371/13423, C.O. to F.O., 29 Dec. 1928; F.O. 371/14152, C.O. to F.O., 11 Mar. 1929; C.O. 525/127, Gent, [C.O.] to , F.O., 6 July 1929Google Scholar; and Pick, , Searchlight, 162 ffGoogle Scholar. for Kylsant's attempts to interest German capital in purchasing his Nyassa Consolidated shares.

130 F.O. 371/15014, Salazar, to Kylsant, , 21 Feb. 1930.Google Scholar

131 F.O. 371/15015, Minute of G.M., 6 Sept. 1930.Google Scholar

132 F.O. 371/26796, Memorandum of Fone, C. H., 14 Feb. 1941.Google Scholar