The 1838 Treaty of Balta Liman, or the Anglo-Ottoman Treaty, was a formal trade agreement signed between the Sublime Porte of the Ottoman Empire and Great Britain. The trade policies imposed upon the Ottoman Empire, after the Treaty of Balta Liman, were some of the most liberal, open market settlements that had ever been enacted. The terms of the treaty stated that the Ottoman Empire would abolish all monopolies and allow British merchants and their collaborators to have full access to all Ottoman markets and be taxed equally to local merchants. These agreements did not constitute an equal free trade arrangement, as Britain still employed protectionist policies on their agricultural markets.
Leading up to the Treaty of Balta Liman, in autumn 1831, the Governor of Egypt, Mehmed Ali, retaliated against the Ottoman Empire. Mehmed Ali had not been given the territory that the Ottoman Sultan Mahmud II had promised him after he provided military expertise in defeating Greek rebels in 1824. In response, Mehmed Ali's son, Ibrahim Pasha, led the Egyptian army to storm Lebanon and Syria, quickly defeating Ottoman forces. Mahmud II appealed to Britain and France for help, but neither would intervene. The Empire reluctantly turned to Russia for help, which in turn stopped Mehmed Ali's advancements. After a round of negotiations, Egypt was able to retain most of the conquered land, though neither party was truly satisfied with the outcome. Tensions between Egypt and the Ottoman Empire, along with fears of Russian intervention, gave London an opportunity and the incentive to negotiate with Constantinople. Britain took advantage of the unrest and offered its hand in helping the Ottoman Empire defeat Mehmed Ali Pasha, in exchange for complete access to Ottoman trade markets.
Background
Rise of Muhammad Ali Pasha
Between the years 1803 and 1807 civil war broke out in Egypt among the Ottoman Turks, Egyptian Mamluks, and Albanian mercenaries. Mehmed Ali Pasha emerged victorious from the battle. Egypt was still under Ottoman control, so when Sultan Mahmud II recognized him as the official Egyptian Governor, his rule was legitimized. During his reign, Mehmed Ali Pasha gained much recognition for industrial and economic reforms in Egypt. Irrigation systems were repaired which led to a booming cotton industry. His administration also tackled important infrastructure issues, including the construction of the Mahmoudiya Canal, which allowed water access to the port of Alexandria from the Nile River. Mehmed Ali's economic policies relied heavily on the use of monopolies to control market prices of goods.
During his reign, Mehmed Ali gained considerable favor in the European world, specifically with France, due to his westernized reforms. He promoted education reform, specifically in the fields of arts and sciences. Also, with much European benefit, Mehmed Ali strengthened trade from India to the western nations; though, still capitalized on middle-man transactions.
Mehmed Ali was nominally loyal to the Ottoman Empire and led an invasion against the Saudis in 1811 at the request of the Sultan. While abroad he became suspicious that the Ottomans were planning to overthrow his rule in Egypt, so he returned to Cairo. Mehmed Ali was prone to act autonomously and made important decisions without first gaining approval from the authorities of the Ottoman Empire. During the time under Mahmud II, reformist efforts were being made to centralize the government and punish peripheral states which acted outside the Porte's will. However, Egypt amassed so much regional power that the Sultan could not take any simple measures to cut back Mehmed Ali's power.
Mehmed Ali was well aware of Mahmud's efforts to cut back regional power and had always been suspicious of the rule of the Sultan. In precautionary steps, the Egyptian Governor had been building up his army and naval fleets with the help of French instructors. With his well-trained army, Mehmed Ali was able to suppress a revolt of Albanian troops in Cairo. Mahmud II acknowledged the skills of Mehmed Ali's army and offered him the pashaliks of Syria and Morea (which was the name for the Peloponnese peninsula of Greece), in return for aid in suppressing Greek revolts. Mehmed Ali and his son Ibrahim agreed and led a fierce campaign in the Mediterranean Sea, which began in 1824.
After a few years of fighting, Mehmed Ali was never granted the land promised to Egypt after helping aid Ottoman efforts to end the Greek rebellion. At this point, Ali Pasha knew his army was superior to the Ottoman's army and he was angry with Mahmud for denying him the promised territory. He had a growing ship industry and needed more natural resources in order to meet demand, and he felt the Ottomans would soon attempt to exert their power over him. These factors led Mehemet Ali to storm the Ottoman territories. In 1831 he sent troops through Lebanon and up to Syria along the shores of the Mediterranean; and conquered Ottoman lands all the way to Konia, which is in the heart of Anatolia.
Sultan Mahmud II quickly realized that he would need an ally in order to defend himself against the forces of Mehemet Ali. First, he turned to Britain and France for support, though he was promptly turned down. The Ottoman Empire had no other choice than to seek the help of a known enemy, Russia.
The Hunkar Iskelesi Treaty of August 1833
Russian Czar Nicolas I, agreed to help Mahmud and immediately sent troops to stop Egypt's advance into Anatolia. It was not an easy move to make on Mahmud's part; public unrest ensued after forming an alliance with Russia. Many were disturbed by the alliance considering that just a few years before, the Ottoman Empire lost land in the Balkans to Russian encroachments.
The looming Russian force encouraged negotiations between the Sublime Porte and Egypt in the spring of 1833. Ultimately, Mehemet Ali came out of the peace negotiations – agreed upon at the Convention of Kütahya – with all of Egypt, Syria, Jeddah, Crete, Adana and Sudan. He was also promised that his sons could keep his lineage alive as rulers of Egypt, indefinitely. On the other hand, as payment for Russian support, the Ottoman Empire had to agree to close the Dardanelles, the passage between the Sea of Marmara and the Mediterranean, to warships if Russia was ever attacked.
The British and the French were not happy with the Hunkar Iskelesi Treaty. The French had all along quietly been backing the reign of Mehemet Ali in Egypt and would have been happy to see the Ottoman Empire crumble. France had taken an interest in North Africa and seized Algeria from weak Ottoman rule, just prior to the treaty. France also had strong diplomatic ties with Mehmed Ali Pasha. The British now feared Russia's growing influence over the Ottoman Empire. The UK could not permit Russia to take over the Ottoman Empire, because that expansion would pose as a major threat to Western Europe. After the Hunkar Iskelesi treaty, England considered the survival of the Ottoman Empire a worthwhile cause.
French and British diplomats were even more alarmed at Russia's involvement in the Ottoman Empire when the Munchengratz Agreement was signed in 1833. The Munchengratz Agreement was authorized by Prussia, Austria and Russia; and it stated that each power would stand alongside one another in any future decisions, especially any decisions concerning the state of the Ottoman Empire. This agreement did not state any new treaties, though it made a public display of the powers' unity on issues concerning the Ottoman Empire, which appeared to be in its final decline.
Timeline of events
- 1830- The Ottomans lose the war to the Greeks; Greece gains independence from the Ottoman Empire.
- 1830- The French seize Algeria from the Ottoman Empire and begin to colonize Northern Africa.
- 1833- The Hunkar Iskelesi Treaty defensively align Russia and the Ottoman Empire. The Munchengratz Agreement publicly reasserts Russian, Austrian and Prussian unity. The Convention of Kütahya ends war between Ottoman and Egyptian forces, and grants Egypt land won during battle.
- 1833- The revolt of Muhammad Pasha of Rawanduz begins to take great share of threat towards the Porte, Indeed in 1813 he will launch his revolt against the Ottomans, he will first increase his influence then will launched into his conquest further north taking Jazira, Diyarbakır, Mardin and Nuseinbin, This will trigger a craze among the Ottomans.
- 1834- Mehmet Ali Pasha, now in control of Syria, experiences troubles. The Syrians had once welcomed the Egyptian Governor, championing him as the "pioneer of European civilization in the east"; nevertheless, the Syrian economy is hurt under the monopoly policies of his regime. Syrians revolt against Ali Pasha, but are quickly defeated and terrorized shortly after.
- 1834- Trade Capitulations between the Ottoman Empire and the Britain expire after 14 years. After taking into account the increases of international prices, customs duties would have to be raised to make up for inflation. The UK is unwilling to renew the agreement with raised customs duties. The Secretary at the British Embassy in Constantinople, David Urquhart, begins to draft a new trade agreement.
- 1835- British diplomats attempt to work with Ali Pasha, in the hopes of building more trade infrastructure throughout new Egyptian territories. At the request of Lord Palmerston, England wants to build rail lines connecting the Syrian coast to the Euphrates and on to the Persian Gulf. Mehmet Ali denies this request, as well as a less extravagant one for another rail line.
- 1838- The Treaty of Balta Liman is signed by the Britain and the Ottoman Empire. The relations between the Sultan and Egypt are extremely volatile. The Treaty would thwart Russian power over the Ottoman Empire and benefit British producers significantly. Though the Ottomans would gain slightly from increased trade, the main incentive is to bring down Mehmed Ali by abolishing monopolies, Egypt's primary source of income.
Intended outcomes of the treaty
In 1820 the U.K. and the Ottoman Empire had established a Trade Tariff that would expire in 14 years. After 1834 neither party wanted to renew the original agreement as it stood; so, Reşit Pasha (advisor to the Sultan), David Urquhart (an English diplomat), Lord Posonby (the British Ambassador) and Counsel General John Cartwright, worked to form the Treaty of Balta Liman. David Urquhart was sent to Istanbul to befriend Reşit Pasha and convince him the treaty would be of benefit to the Ottoman State. Urquhart worked hard to convince Ottoman notables that the treaty was in their favor. He published articles in Istanbul's newspapers, listing the benefits of free trade markets; his propaganda influenced the capital city deeply. France and Russia watched the negotiations of the treaty closely. Russia feared losing its newfound Ottoman interests, and the French may have had to consider switching sides if Britain aligned itself with the Sultan against Mehmed Ali Pasha of Egypt.
'British Aims:' The UK was leading the world in the industrial revolution and needed a bigger market and more resources in order to expand. So, it would benefit England the most to engage in as much trade with the Ottoman Empire as possible, with very little restrictions on the open market. Further, the British wanted the Ottomans to accept the treaty as quickly as possible. England needed to strike the deal while the Ottoman Empire was in a tight spot with Egypt so it would have less room to negotiate. England had to convince Mahmud II that the treaty would end Mehmed Ali's reign. Egypt's economy was largely controlled through the use of monopolies; if monopolies were abolished, Egypt's economy would crumble. Also, opening Egyptian markets, with no protections, to the UK's industrial goods market would crush its infant industries. England did not want to see the Ottoman Empire fall into the hands of Russia either. Russia would not engage in free trade with Britain, and there would be no benefits of market inequalities that would form between the Ottoman Empire and England after the treaty.
The balance of trade up until the mid 19th century was in favour of the Ottoman Empire which, in the years 1820–22, exported goods worth £650,000 to Britain. By 1836–38, that figure had reached £1,729,000. Given that the majority of the share of trade was made by Ottoman merchants, the Europeans, especially the British and the French, became irritated and unhappy with this trade arrangement and pushed for intervention and transformation of the economic policies of the Middle East. Indeed, the French foreign ambassador posted a letter to Louis-Mathieu, Comte de Mole in 1837 stating:
I realized with pleasure that for our merchants the main question was not so much the amount of the new duties as their equality and stability. For what our merchants are requesting is, as far as possible, the abolition of monopolies and prohibitions that have diverted almost the whole export trade into the hands of a small number of favored Barataries.