Reasons for Signing
1. Anglo-Dutch Rivalry over Trade in the East
- Treaty aimed at removing prevailing commercial rivalry
 - Both were striving to control trade in SEA
 - This led to friction, discrimination and rivalry
 - Dutch policy of trade monopoly vs British belief in free trade aggravated situation
 
2. Question of Singapore
- Friction peaked with the founding of Singapore by Raffles
 - Singapore proved its worth in a short time
 - With its strategic position and free port status, S’pore diverted much trade from Dutch ports (Pontianak, Sambas, Sukadana, Batavia)
 - Dutch began to make claims to Singapore
 - Their argument : Singapore legally belonged to the Pro-Dutch Ruler, Sultan Abdul Rahman
 - Thus Raffles had no right to make a settlement there
 - Britain not prepared to give up Singapore
 
3. British Policy of Friendship with the Dutch
- To counter French expansion in Europe
 - Both were not prepared to declare war on each other for political and financial reasons
 
BRITAIN
- Holland was a vital line of defence
 - A stepping stone for French military operations against Britain in the Napoleonic Wars (1793-181 5)
 - To prevent the French from doing so again, Britain had to obtain Dutch support against the French
 
HOLLAND
- Owed Britain a huge debt; borrowed heavily from Britain during the war
 - Anxious not to antagonize the British
 - Thus requested Britain to open negotiations to settle outstanding disputes
 - Also to maintain Anglo-Dutch unity in Europe
 
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References:
https://docs.google.com/document/d/1dMawlVehQky_go5mz70BJ1bacOkweuDH4Xl4vQarzCU/preview
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