Note: I thank Frank Ching, who generously shared the sources that he collected on the Li family with me, when I visited Hong Kong in 1996. Thanks also go to Elizabeth Sinn, who gave helpful advice on the possible sources. This chapter is a revised and expanded version of āSaigonās rice exports and Chinese Rice merchants from Hong Kong, 1870sā1920sā, in Jƶrg Thomas Engelbert ed. Vietnamās ethnic and religious minorities: A Historical Perspective (Benn: Peter Lang, 2016): 33ā52.
1 Introduction
The economic foundation of Cochinchina of todayās southern Vietnam was built on rice. Rice accounted for over 70 percent of total exports, half of which went to China. The income of all the inhabitants depended on the price of rice and the volume of rice exported (ShoĢzoĢ 1939/1995: 87). Rice credit (also known as green rice loans), collection, transportation, wholesalers, and rice millers were structured around one goal: exporting as much rice as possible. Rice trade was thus the keystone of business and the index of prosperity of Chinese trade in Cochinchina.
A major puzzle occurs here: although rice was so vital to the economy of Cochinchina, we know virtually nothing about the Chinese merchants who operated the trade. Although the company names of Chinese-owned rice mills are known, we have little idea about their owners. Whereas shipping was crucial to the rice export, shipping companies formed no part of the business interests of Chinese rice merchants based in Saigon-Cholon. This contrasts sharply with Singaporeās Straits Steam Shipping (Shideli lunchuan gongsi åƦå¾å©č¼Ŗč¹å
¬åø) founded in 1890, or the Sino-Siam Steam Navigation (Huaxian lunchuan gongsi čÆę¹č¼Ŗč¹å
¬åø), founded in 1909 (Akira 1989: 55). Even more striking in Vietnam is the absence of insurance companies, a critical sector for the long and risky shipping of the commodity. Between 1912 and 1933, eight of the nine insurance companies in Siam (now Thailand) were Chinese (Akira 1989: 102), but no Chinese insurance company was in Vietnam until well after World War II (Zhang 1956: 92ā95). Banks were even farther away from the local Chinese capacity, except for a short-lived Banque de Cochinchine in 1908.
Two Chinese sources exist. The first was written by a Chinese diplomat who visited French Indochina in 1905 and contains a list of leading Chinese shops and rice mills in Tongking (northern Vietnam) and Cochinchina, and the second was compiled in Saigon in the 1950s, listing the pioneer Chinese leaders in Vietnam. However, more puzzles arise from these sources because we have two sets of names of Chinese elites in Cochinchina that do not correspond to each other. None of the rice mill owners on this list appeared as leading figures of the Chinese Chamber of Commerce, nor did they appear in any biographies of the Chinese in Vietnam, before or after.
Why were such important businessmen nameless, even though each ran a mill producing from 500 to 1,000 tons of rice a day? Surely, this quantity of output required infrastructure consisting of large-scale transport and storage space in godowns, all requiring enormous capital. What seems to be missing in the rice sector of Saigon-Cholon, the leading trade and industry in French Indochina, is vertical integration among the leading Chinese rice business groups such as those that existed in Siam, the Dutch East Indies, and British Malaya. A closer look, however, reveals that integration did exist in Cochinchina, but to find it, one has to look across the South China Sea. Many of the leading companies and elites who accumulated their wealth in the Saigon rice trade were in late nineteenth-century Hong Kong. These businesses, in turn, gained them prominent positions in Hong Kong society. Among them were rice importers, shipping companies, insurance companies and banks ā often all in one firm. If we want to better understand the societies on both shores of the South China Sea, we need to view these important commercial entities in the historical context of French Cochinchina. This chapter traces the history of some of these Chinese companies in Hong Kong in the late nineteenth and early twentieth century, to start piecing together these fragments and thereby reconstruct the lost history of the Chinese rice merchants in Vietnam.
2 Saigon rice shipping to Hong Kong, 1860s and 1870s
In the early days of Saigon in the 1860s, the category of ārice merchantā existed but did not mean ārich and important,ā as it did later in the century. Instead, the leading European or Chinese merchants ā such as Behre, Hogg, OrroƱo, and Speidel, and Spooner, and the Chinese companies Tan Keng Ho and Ong Cat Xuong (Wing Cat Xuong ę°øåę?) ā were listed as commission agents (Fr., neĢgociants) (Annuaire de la Cochinchine franƧaise 1874ā1879; The Directory & Chronicle for China, Japan, Corea, Indo-China, Straits Settlements, Malay States, Sian, Netherlands India, Borneo, the Philippines, &c 1877: 382). Although some people were listed as ārice merchants,ā none emerged as dominant in the following decades, as they never made it that far. The business leaders who rose to prominence in the 1870s and 1880s mostly were previously commission agents. Hao pinpoints this change at the leading European firms:
The once gigantic houses, which were few in number and financially self-sufficient, gradually lost their monopolistic position in the China trade after the 1860s. The growth of business in a new direction in the 1860s saw the concomitant decline of the traditional commission agency business. Local shipping was perhaps the most outstanding and successful branch of business to be fostered ā¦ and also industrial undertakings after the 1880s.
(1970: 22)
When the Saigon port first came under French control, many European companies rushed to join the rice trade. In the 1860s, almost all the major European firms ā Jardine, Matheson, Landstein, Siemssen, and A. Scott ā were involved in SaigonāHong Kong shipping. Augustine Heard, a Hong Kongābased company, was the agent for the China Sea, Saigon, and Straits Steam Ship Co. in the 1860s, and its Saigon agent was Wm. G. Hale (Almanac & Directory 1873: 89; Straits Times, April 16, 1870). During the 1880s, one of the leading figures in Hong Kong was Fung Ming-shan 馮ęē, the comprador to A.H. Hogg. As he was in Saigon until 1876, shipping rice to Hong Kong would have been one of his main activities (Hong Kong Historical Archives, Carl Smith Collection, card no. 3238; Smith 1985: 126).
Numerous Chinese companies were engaged in the SaigonāHong Kong rice shipping trade.1 Goods on board to Hong Kong often consisted of āSaigon cargo riceā (Daily Advertiser and Shipping Gazette, August 8, 1866: vol. 1, no. 59; October 31, 1866: vol. 1, no. 132), and rice from Saigon was usually over 33 percent paddy rice (unmilled rice), which was more than that of Siam and Burma (now Myanmar). Siam had three types of rice ā cargo, paddy, and white rice ā but this was the only type of rice en route to Hong Kong from Saigon. French sources confirm that most of the rice from Saigon that went to China was paddy rice.
Table 1 shows that in 1867ā1868, Hong Kong was the largest importer of rice from Saigon.
Table 1:Rice Shipped from Saigon, 1867ā1868.
Destination | Metric tons |
Hong Kong | 60,242,700 |
Singapore | 22,163,960 |
Macau | 5,049,420 |
Amoy | 1,165,920 |
Swatow | 2,965,680 |
3 Rice mills in Hong Kong in the 1860ā1870s
In the 1860s, the paddy and cargo rice shipped to Hong Kong created a rice milling industry because of the needs of the local market and the re-exportation of rice to the United States. These services were not needed for rice exports to China because they were performed there. According to the Hong Kong Daily Press, although the rice from Canton was partially cleaned, the rice from Saigo...