Proposed Anglo French Trade Treaty 1786

[Galveston Bay]

The British Crown, in the person of the William Eden, Baron of Auckland, and Ambassador to France, approaches the French Crown with the following proposal in 1786.

1. Free trade between French and British possessions and territories globally
2. Reduction in tariffs between the two (free trade does not mean trade without tariffs, just right to trade)
3. specific reductions per the below:
https://en.wikipedia.org/wiki/Eden_Agreement#The_Terms_of_the_Treaty

this would include India, where the British East India Monopoly on saltpetre and tea would be ended.

4. Reduction of forces in India to the following:
British East India Company: 6 fortresses, 6 garrison brigades
French East India Company: 6 fortresses, 6 garrison brigades

Neither Company or Government will incite war against the other in India by third parties

5. British and French naval vessels will protect each others shipping from pirates, particularly in the seas around Capetown and the East Indies (Malay pirates are indeed a threat)
This will include rescuing each others sailors, merchants and other citizens from pirates
Neither company will supply gunpowder or arms to the competitors local natives (no supporting rebels and opponents, no de facto proxy wars)

6. Neither nation will incite slave revolts in each others territory or possessions even in the event war should occur between the two powers.

Over the past decade, influential members of the British Parliament have been studying Adam Smith's "The Wealth of Nations" carefully. In addition the drain in both lives and treasure to maintain or extend an empire in India has increased resistance to the idea. The Slave revolts instigated by Spain in the Falklands War were also a serious measure of concern.

Thus by 1786 the British are willing to talk seriously with France about potentially reducing the points of conflict between the two Great Powers...

[TLS]

French negotiators are not altogether displeased at the British negotiators. His Highness Louis XVI is a lover of peace and of civilization, particularly in light of the current specter of barbarism on the European continent.

However, the French negotiators see a number of points of contention. His Highness is exceedingly proud of France's economic development under His reign, especially the burgeoning industriousness in Lille, and is concerned that Britain's advances in economic and industrial development will overwhelm His people. While France is thus unwilling to enter into any degree of free trade between the French and British powers or empires. Points 1 through 3 are, accordingly, rejected by Versailles. Trade between France and Britain can continue, and is encouraged, but France has no desire to lift its tariffs on any goods from any nation, period.

However, the non-economic elements of the treaty are explored in greater detail. France is willing to explore force limits in India as delineated in Point 4, but note that France has far fewer fortresses in India than Britain does. Even if France were to fortify each of its current factories in India, to include Mahe, Yanam, Karikal, and Chandernagore, that would only bring France up to 5 fortresses--and the French doubt that Britain would be especially fond of France establishing a Fortress deep in the heart of Bengal. France is willing to explore a policy of non-promotion of violence against Europeans by Indian allies, but believes that the current proposal to limit forces is balanced heavily towards the English East India Company's posture on the subcontinent. France is willing to limit its fortresses, say to 3, but is unwilling to limit its mobile army any below 9 garrison brigades.

On points 5 and 6, France sees no points of contention. France is concerned about the threat of piracy in the Indian Ocean, especially between the sea lanes connecting India to Ile de France, Ile Bourbon and thence to Europe. On the concern about slave revolts, the French are incredibly concerned about the precedent set by the Spanish, and are even willing to explore greater avenues of cooperation on countering the threat of slave revolts and runaways.

[Galveston Bay]

Eden urges the French to offer a counter proposal regarding tariffs, as he believes that it would the commercial benefits would indeed benefit both nations. (items 1-3), however, he is willing to offer the French the ability to place tariffs on British manufactured goods so that they are not cheaper than French manufactured goods. Because of the sheer size of the French market, Eden believes that in the end the French manufacturers will suffer no disadvantage nor will the British.

Regarding point 4, this works out to 6,000 troops for each side, and agreement is reached that each side will cease promoting war via native allies upon the other, than a reasonable agreement seems in sight.

It appears at least that points 5 and 6 seem to be in agreement. He is interested in what proposals the French have regarding greater avenues of cooperation regarding countering the threat of slave revolts?

[Galveston Bay]

In the Fall of 1789, observing the food shortages and unrest in France, the British Government again offers a proposal to France to encourage free trade between French and Anglo-American ports, suggesting that perhaps the highly productive American farms could help feed France.

The specific proposal would be a reduction in tariffs (see above), but particularly such in regards to American Corn (generic term for wheat, corn, maize etc).

[TLS]

France's lead negotiators, now representing a government in Versailles that is being driven more in favor of free trade due to the tremendous shortfalls in the country, respond with an additional counteroffer. France broadly accepts the terms identified in the original British offer of 1786, but insists on retaining tariffs to defend the French textile industry. Instead, France offers Britain "most favored nation" status in the textile industry; while France will defend her textile industry from imports, British imports into the French market will face the lowest barriers relative to all other competitors.

[Galveston Bay]

France's lead negotiators, now representing a government in Versailles that is being driven more in favor of free trade due to the tremendous shortfalls in the country, respond with an additional counteroffer. France broadly accepts the terms identified in the original British offer of 1786, but insists on retaining tariffs to defend the French textile industry. Instead, France offers Britain "most favored nation" status in the textile industry; while France will defend her textile industry from imports, British imports into the French market will face the lowest barriers relative to all other competitors.

agreement is quickly reached on the British side

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