If the entire scope of Franco-Russian trade relations, from Colbert s establishment of the

Transcription

1 366 Franco-Russian Trade Relations over the Long Term: from the Compagnie du nord to the 1787 Trade and Friendship Treaty If the entire scope of Franco-Russian trade relations, from Colbert s establishment of the Compagnie Française in the 17th century to the present, including the Soviet period, had to be summed up in three words, these words would be: competition, counterfeiting and competence. Of course, competition is truly universal as far as trade goes, but that of the Dutch in the 16th century, then of the English in the 17th and 18th centuries (like that of the Germans and Americans in the 19th century), were particularly fierce in this conquest of a Russian market believed to have huge potential. The result was the counterfeiting and imitation of French products appreciated by Russian consumers by manufacturers and traders of these great trading nations, which were then picked up by Russian counterfeiters themselves. The last word, competence, should be understood as representing the various approaches that were tried one after the other by the various French governments to establish and then expand trade relations with Russia. What is clear from the examination of historical documents, particularly the reports from the field that were first sent by the royal emissaries, and then by the French consuls, is their outstanding comprehension of the subject and especially their efforts to understand this vast country and its inhabitants in all their complexity. In contrast, the incomprehension of and lack of effective support for the men in the field, as well as the habit of getting bogged down in details rather than developing a coherent economic and commercial policy, too often characterized the actions of members of French governments from the ancien régime to the Second Empire or the Republic, with the notable exception of Colbert s administration. By Anne Kraatz, historian, consultant _ GB.indd /05/13 09:05

2 So let us start with Colbert, who presided over the establishment of a trading company, specifically conceived to introduce French products directly (i.e., without Dutch or English intermediaries) to potential buyers of this region. These products were marketed under the generic name, Nord. Incidentally, the first company, established by royal decree by Louis XIV on July 9, 1669, was called Compagnie du Nord. Conceived on the model of the Compagnie française des Indes orientales, Compagnie du Nord was intended to be the specific response to the Muscovy Company and Russia Company, which were chartered by Elizabeth I in 1555 and which operated under this name until its dissolution in The Compagnie du Nord did not experience the same success, far from it, since it was already moribund six years after its creation, not just because of the war with Holland, but also because of the lack of enthusiasm from French ship owners, especially those from Saint-Malo and Bordeaux. Solicited keenly by Colbert, they were hardly inclined to look toward the North or East, given the prosperity of their exchanges with the West. It should be mentioned that all trade with Russia was through the sole port of Arkhangelsk, located on the banks of the Dvina River, some 45 kilometers away from the White Sea, with difficult and dangerous access across the Arctic Ocean. The Saint Mikhail Fair that was held there once a year, from August 20 to 30, welcomed all the country had in terms of Russian and foreign merchants, but the ships of the latter were obliged to leave before the end of September to avoid being icebound. Initially capitalized at 812,000, a substantial sum but much less than that of the Compagnie des Indes, the Compagnie du Nord had only three merchants among its shareholders, with one third of its financing coming from the king s personal funds. And yet, these shareholders were exempt from any losses they might incur during the first six years of existence, and if there were any profits, the sums advanced would be reimbursed without interest. Moreover, the French state committed to purchasing all of the equipment necessary for the construction, refitting, arming and equipping of the French ships from the company at a specific purchase price that included expenses and risks, along with a reasonable profit. To sum things up, people that invested funds in the Compagnie du Nord bore no risk, at least in principle. Items sent to the Saint Mikhail Fair by members of the Compagnie du Nord typically represented France s commercial image (reinforced during this period by Louis XIV s court), namely luxury and good taste. So they were precious or _ GB.indd /05/13 09:05

3 368 superior quality fabrics gold, silver and silk sheets, gold and silver thread for lace, canvas from Rouen, Picardy wools, milled white paper, salt, sugar from the West Indies, luxury foodstuffs, fresh fruit, especially oranges and lemons, candied fruits, olive oil from Provence for lighting, wine from Cahors for Orthodox religious ceremonies, snuff from Martinique, and finally, frivolous little Parisian objects with a distinctly French appeal. White and red wines as well as brandy were a significant part of French merchant ships cargoes for the Russian market at that time, which was accustomed by the Dutch and the English to buy French in these areas. In return, the Compagnie du Nord s merchants brought back precious and non-precious metals, wood, grain, tar, potash, tallow for candles, whale oil for lighting, wax, leather and all kinds of furs. Colbert and the king hoped to kill two birds with one stone by creating this company. It was a matter of implementing Colbert s well-known mercantilist policy, but there was also a strategic logic to this enterprise. A weakening of political and trading power of France s two rivals, the United Provinces of Holland and England, had to be attempted through the forging of alliances with other countries that were not yet strongly aligned with either of these two nations. Moscovy (Russia) was without a doubt the most important nation thanks to its geographic position, its territorial coverage and its abundant natural resources. Among these, three precious and non-precious metals (iron, gold, silver, copper, lead and tin), wood and grain were considered to be strategic resources. Gold and silver, of which France did not have any significant resources, were obviously crucial to make coins. The Russians could export most of their precious metals since they only minted coins in small quantities, since a major part of their internal commerce in the 17th century was still being carried out through bartering, and their external commerce through the Rixdollar, a currency minted for them outside their borders _ GB.indd /05/13 09:05

4 JEAN-BAPTISTE COLBERT ( ) 369 Difficulties and Sluggishness Although the Compagnie du Nord was quickly falling apart, the idea of a trading company that worked with Russia was far from being abandoned. Throughout the 18th century, French royalty was interested in establishing another one, once again for the same reasons that Colbert gave, but with more attention paid to geopolitical strategy issues than during Louis XIV s reign. The complex relations between France and Russia, which were alternately enemies and friends during Louis XV s reign, the modernization of the Empire undertaken by Peter the Great and then continued by the empresses _ GB.indd /05/13 09:05

5 Elizabeth I and Catherine II, as well as the increasing influence of French artists and scholars in Russia, made this country a potential ally of vital importance for France against England, but also against the expansion of Prussia under Frederick II. So much so that, as trade was seen (since Colbert and even before him) as the ideal vehicle for understanding between societies, the French crown did not rest during nearly the entire 18th century until it obtained the signing of a trade and friendship treaty with Russia. It was finally signed on January 11, 1787, two years before the French Revolution, which would unfortunately render it null and void. 370 The draft of the treaty, developed in September 1745 by Mr. d Alun, a special envoy from France to Czarina Elizabeth, planned on granting most favored nation status to Russia, which had already obtained it from England in 1734 (the Hanse cities as well as Holland and England had long ago obtained it from France, in spite of periodic conflicts between these two countries). As for the merchandise that was traded in the 18th century, it was more or less the same on both sides: textiles, lace, trinkets, small pieces of furniture, mirrors, olive oil, oranges, sugar, wines and brandy from the French; wood, metals, potash, fur and grain from the Russians. Nevertheless, the tariffs were subject to clever calculations by the French, calculations that ended up being extensively modified at the time of the final signature 40 years later. The proposed treaty s most important article related to French exports of wines and especially brandy, as this latter business was exclusively reserved for the Russian imperial crown. In the textile sector, competition and even counterfeiting was rampant among the Dutch (velvet and wool) and the English (silk). Regarding frivolities and trinkets, French Protestant craftsmen exiled in Berlin were the most abundant producers of these products, demonstrating the same taste and quality, while exporting them to Russia at a lower cost. Even French clothing fashions, which were universally adopted during the 18th century, both helped and hindered the country s exports. Desired by all but too expensive for most Russians, they were subject to counterfeiting and sometimes smuggled. In any case, there were always imitations that led to losses for French commerce, a situation that still persists in the world. As for French brandies and wines, they were often adulterated by Dutch merchants who continued to sell them to the _ GB.indd /05/13 09:05

6 Russians. All in all, nothing was easy in Russia, and in general, its trade relations with France in the 18th century were in fact hardly any different from those of the previous century. Volumes nevertheless grew sharply due to the simple fact that everything now transited through the easily accessible port of Saint Petersburg. Despite all of the French administration s efforts, the merchants, ship owners and navigators hardly ever demonstrated any sustained eagerness for trade with Russia, which they deemed too far away with a culture that was too different. Incidentally, in contrast to German, English and even Italian merchants, this sluggishness regarding investments in new markets in the long run (which would include going there and establishing themselves), was the leitmotif of complaints made to the French traders and administration by various French envoys in the field. This situation characterized the entire 19th century, during which the general growth of trade throughout the world would nevertheless sharply increase the volume of business between the two countries. And yet, thanks to the abundance of its crucial raw materials, notably metals and grain, Russia s trade balance would always be with few exceptions largely in surplus, not just with France, but also with other nations _ GB.indd /05/13 09:05