Abstract
Spain, ruled by the Habsburg dynasty, had been in steady decline since the 17 th century. Finally, the War of Spanish Succession brought about a dramatic change, and the Bourbons were finally able to replace the Habsburgs as the ruling house of Spain. As a bonus treat, the Bourbons also inherited the gigantic empire of Spanish overseas colonies – most notably the Americas and the Philippines. Considering that the Philippines were located at the other end of the Pacific Ocean, far removed from the mother country, the Bourbons continued the Habsburg practice of following the Recopilación de leyes de los Reynos de las Indias. (“Laws of the Indies”) to manage this colony. As situations in the East Asian Seas had changed, and innovative technology of navigation had been introduced, the Spaniards tried to fully utilize the geographical advantage of the Philippines in order to trade with the Chinese, and allow Galleons running the Acapulco - Manila commercial route to carry more Asian goods per sail. However, Galleons that were always carrying the valuable oriental treasures gradually attracted the envious eyes of British privateers, and in the mid-18 th century, Britain even planned an assault to occupy Manila. Alerted by all these encroachments on the Spanish colonial regime, the Bourbon Spain began to initiate reforms in colonial policies of the Philippines. Spain established the La Real Compañía de Filipinas (“The royal Philippine company”) in Madrid in 1785. The purpose of this specially licensed trading company was to promote the economic development of the Philippines and its processing industry export trade. This company not only reinforced the importance of the Philippines in the Asian market, but also opened direct trade between Spain and the Philippines. The La Real Compañía de Filipinas took over Galleon trade business that were run between the Americas and Asia since the 17 th century, which went on until 1810, when the company finally failed. This paper strives to present the Spanish activities in East Asia seas during the 18th century in a macroscopic, multi-perspective way. It shall also try to explain Bourbon Spain’s shift in management policy in Manila in the 18th century, and the purpose and meaning behind the establishment of a concessionaire company in this period.