Following Portugal the Netherlands formed in March 1602 the United East India Company whose purpose was to establish commercial relations with India where the Portuguese had already established themselves and had been carrying on a lucrative trade. The first political connection of the Dutch with South India was the treaty they concluded with the Zamorin of Calicut in 1604, with the intention of expelling “the Portuguese from the territories of his Highness and the rest of India.”

On 16 October 1608, they signed a new treaty with the Zamorin, for the “ruin and destruction of the Portuguese together with then- association.” As the Portuguese had already established factories and had relations with the local rulers and kingdoms for securing commercial facilities, the Dutch found it rather hard to stabilise their position in any of the existing commercial centers.

However, the political interference of the Portuguese and their fanatical approach to religious matters had exposed them to odium among the local people and their sovereigns. The Dutch could easily make capital out of this situation; they moved quickly and made attempts to strangle Portuguese trade. As the Portuguese were hostile to the Dutch and the English, the latter two powers made a joint venture to oust their enemy from the Kerala coast.

Common grievances brought them closer, and they agreed to form a united fleet to defend their commercial interests which were at stake. At a consultation held at Batavia in October 1621 the United Council of Defense took important decisions on the questions of joint action against the Portuguese. However, in actual practice, it could achieve nothing.

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But the Dutch continued to make independent attempts for gaining the support and goodwill of local sovereigns in executing their plan of erasing the Portuguese from the commercial map of Kerala. It was hoped that in the event of the Portuguese exit, they could monopolise the entire pepper trade of the region and also purchase the produce at a lower cost.

According to Nieuhoff they negotiated in 1642 a treaty with “Siam Baatshery Vaubaar”, the king of Purakkad. Thanks to the enterprising effort of Antonie Van Diemen, who assumed office as Governor-General of the Dutch Indies in 1636, the Dutch were able to establish contact with all the important princes of the Kerala coast. Almost everywhere, it seems, a defensive alliance against the Portuguese became the core of the Dutch relations with the local powers.

The Dutch planted cordial relations with the King of Kayamkulam who received presents from them and assured them his continued cooperation in their commercial efforts. Dirck Schoorl, a Dutch merchant, who had already visited Quilon, was in receipt of an offer of a free trade and a place to build a fort in that Kingdom.

Therefore, Van Diemen thought that it was easier for him to persuade the ruler, but owing to the Portuguese pressure and influence over the sovereign he had to abandon the attempt for the time being.

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Despite the assurance of cooperation, in 1643, the King of Purakkad, at the instigation of the Portuguese, refused to confirm the treaty and the Dutch attempt to secure even an audience with the King was a failure. In 1650 the Dutch met the King Kayamkulam with presents and thereby dispelled the misunderstanding that had into the relations between the two. It has been recorded that.

“As pepper always turned out to be dearer for the United India Company at Cannanore than at Kayamkulam the High Government thought that no more trade should be done at the former place in this, but the whole trade should be shifted to Kayamkulam where, besides, much more pepper was available.”

Therefore improvement of relations with Kayamkulam was the need of the hour. In the same year they were permitted to construct a warehouse at Quilon by the 1 sovereign. The King of Travancore was also co-operative; he promised to be at the disposal of the Company and look after its interests.

Of all the Dutch settlements in India, those of Malabar Coast were the most important in terms of the volume of commerce and the quantum of profit. With no other Indian territories they had such unhampered and steadily prospering transactions as with Kerela kingdoms.

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It was the commercial motive, viz., the desire to secure monopoly in spices, especially in pepper, and not political motive that turned the Dutch into inveterate enemy of the Portuguese. This enmity ultimately embroiled them in expensive battles sometimes with Portuguese and at other times with the local rulers themselves. Seventeenth century wars, in general, in the West coast was pepper wars. “The Honourable Company”, says the Dutch Governor Gollenesse “maintains its expensive establishments on this coast for the sake of this grain.”

The Portuguese were on the verge of collapse. Owing to lack of capital they could buy little pepper. The Dutch in their turn tried to convince local potentates that they would be an effective substitute to the Portuguese. The political sagacity and diplomatic prudence of Van Goens led the Dutch to great heights. Under his inspiring guidance they effected drastic rearrangements in the prevailing set-up and mode of trade.