To understand the global perspective of maritime activities in isle de France as well as the development of the island as an ?Entrepot? of the Indian ocean. We are going to see firstly, what were the factors that led Isle De France to be made the Chef Lieu of France in this part of the world and to be named the star and key of the Indian Ocean as well as the development of Port Louis as a port. In this perspective we will also make a little incursion in the historical development of the port. Secondly, we will see the three axes of developments namely agricultural, commercial and military under the Royal administration. How and why were these axes given importance through the policies of the Royal administration? Thirdly, we will see how slave trade along with spice and other trades have helped to extend maritime activities. Finally, we will see how war affects the island?s economy and how they encourage corsair activities.

In 1764 King Louis xv decided to buy the Mascarenes and in 1767 the Royal administration started in the island. The French East Indian Company, which had ruled the island since 1725, was bound to failure due to its monopoly policies under the ?Exclusive? system. If for the Dutch and the French East India Company the only reason of interest in the island was to use it as a port of Call, the Royal government will be more interested in its strategic position in the Indian seas as a naval and military base.

Even in the time of the Dutch the fact that the Bay of Tortoise (which will later be named Port Louis) which had the potential to accommodate up to 50 ships seemed interesting to them but the fact that the ship of Pieter Both, who was the first Dutch Governor General, in the Indian Ocean wrecked at Tamarin made them lost interest in the port. It is only in 1735, under the French Governor Mahe De Labourdonnais that the port will know the first developments. He dredged away mud and marked out navigable channel with two lines of buoys and as for ships arriving at night, he posted men with navigation light at the top of Morne de la Decouverte. He built warehouses, quarters for officers, office buildings and administrative buildings. He also built powder magazine at the mouth of Caudan Basin. One of the most marvelous things he did, however, was the Naval Ship Yard.

? Before my arrival it never occurred to anyone that boat building might be possible in the harbor? he said. In building at first small boats then one decked and later bigger ships was sheer ingenuity and far seeing for this would be the starting point for the naval and military base destiny of the island in the future. The Subtile, The Creole, The Necessaire, The Thetis, The Hirondelle all would extensively be used either in the slave trade or in Corsair activities. It is under Labourdonnais that the first commerce ?d?Inde en Inde? started. He also encouraged slave trades from India, Madagascar and the oriental coast of Africa.

However, the French East India Company which ruled the island at that time did not show much interest in his great vision and after his departure, his successors only administered the island as much as they could with the population most of the time on the verge of famine.

Future events, however, would give Mahe De Labourdonnais credit in his vision of the strategic location of the island in the Indian Ocean. The Austrian succession wars (1740-1748) and the Seven Years (1756 ?1763) wars would deplete the island of its resources. The Company wanted the French Navy to be repaired, victualled and armed by the island though it has itself done so little to encourage agricultural development.

What could have led the King to take so much interest in Isle De France so as to make it the Chef Lieu of France on the East of Good Hope? What are the historical factors in the fight for power? Why was there such a fuss in the control of the Indian sea? The Portuguese, who were the first European to trade in the Indian waters knew such a decline in power so as to be reduced to be able just to retain only Goa as their colony. As for the Dutch they were more interested in the East Indian Archipelagos, so that India the object of ?convoities? was a subject of great competition between the French and the English, the two great powers of the time. They fought over the one who would reign over India for the Moghul Empire had decline with the death of its last Emperor. The Seven years war proved decisive for France against the British for the one who commanded the Bay of Bengal would command India as it commands the approaches to the Ganges Delta.

The French sent an expedition under Lally Tollendale who greatly depended on Port Louis as a naval base. But because the population was, itself, facing severe lack of everything, the island could help only little and in consequence the French lost the battle.

The King had understood the strategic importance of the island so after buying it from the company, he took interest in developing the island on three axes agriculturally, commercially and militarily.

When Pierre Poivre came, as the intendant of the island, he was mainly interested in firstly developing agriculture, secondly in improving the capital by giving the guarantee of free trade to the inhabitants thus preventing monopolies in sheer contrast with the policies of the French East India Company and thirdly in the development of the harbor of the island, where again the French East India Company has lamentably failed except under Labourdonnais.

He established a ?Tribunal Terrier? which advised administrators about land grants but also controlled the sale of concessions. Under the company concessions were made without any control it resulted in 1788 that out of 210,880 acres of land given only 72,845 acres only were used. A real boost was given to agriculture. Emphasis were put on the production of rice, sugar and vegetables. Plants like breadfruit, apple, peach, coconut, avocado, mango, tea, sago, manioc, pepper, clove, nutmeg, cinnamon and many medicinal herbs including Ayapana were introduced. Large number of cows, oxen, sheep goats and pigs were brought from the Cape, Madagascar and India. Under Desroche several improvements were made, he built three water mills producing 6000 pounds of flour per day. The bakery could make enough bread for the garrisons and the provision of ships.

New warehouses containing reserve stock of wheat, flour and rice were built. All these measures would encourage the coming of ships and set the base in making Port Louis a victualling port of excellence. There was revival of plantation agriculture. Even local merchants invested in country estate and acted as agents for absentee planters. They looked for profitable outlets for exportable commodities.

As for commerce, tariffs were introduced to control prices. The king even guaranteed two flutes for the transportation of cattle from Madagascar. The liberal administration and the uplift of the restrictions on commercial activities transformed the island into a trading center of international trade. Richard Morris wrote a letter to La Fayette asking for a Freeport to be established. In 1785 the minister for the Navy Des Castries proclaimed free trade and as from May 27, 1787 all foreign ships were welcome in Port Louis.

Though merchants were not allowed to export Indian goods to L?orient or sell French goods to India, they circumvent this with connivance of the French administration. Indian goods shipped from Isle De France were found in L?Orient. Between 1786 to 1788 by special permission and in 1790 free trade beyond the Cape Of Good Hope was extended to all French. The commerce consisted of long and short distance trades for imports. Ships from France would bring wine, bedsheet and other consumables. American ships brought salted meat and items related to navigation and shipping. Food supplies would come from Madagascar. Traders in arms on the African coast like Commarmond, for example were also present in the island as far as 1768 and in between 1781 to 1786. He had 8 ships. Thus a powerful and influential group of merchants would emerge in the colonial society. 183 merchants were reputed to be living ?opulently?. Out of 58 new arrivals between 1803 and 1810, 46 were merchants and 12 traders. After 1783 there were further increase in Mauritian Traffic – In 1788 an average of 200 ships was entering Port Louis and it became the end stop for many ships. In 1785 ?Derby? the first American ship from Salem came to Ile de France. American was engaged in slave trading from Madagascar and was interested in the trade with China all these ships were thus encourage to come to the port. American as neutral came in large numbers to buy goods, for which, they would, otherwise, have to go all the way to Calcutta or Canton and pay higher price. In 1794 the first consul to Isle De France was John Mc Carthy, he encouraged American ships to come to Isle De France. 87 American ships arrived in Port Louis. There was a growing importance of the strategic role of Isle De France. Denmark and American ships travelled to Sumatra, to Coetivity isles , Manila, Muscat, Traquebar, Batana, Canton, Madras and Calcutta. From Boston and Baltimore, Salem and New York they provisions, spares oil and candles. They traded their items tin, pepper, and saltpeter, from Sumatra. Ginseng from Canton, Sugar from Calcutta. Coffee, cotton and drugs from Muscat. American goods were exchanged in Isle De France for other products, which were in turn exchange for other goods. Exchanged oil and candles from Boston were sold in Isle De France for Ebony and spices from the Spice Islands could be bought and sold. This saved the ships the trouble of going to canton or Malacca. Later under Decaen governorship Port Napoleon would know intense commercial activities. The Prairal an XI (22 May 1803) regulated the operations bring steady flow of cargo to Port Napoleon. It went on until the British tightened their blokade activities with the South East Asia became too dangerous.

Two important activities emerged with various degrees of fluctuations alongside with the development of the harbor and free port. Slave trade and Corsair activities emerged alongside other commercial and trading activities. The former started from the very beginning with the arrival of the French in the island, its commerce was in the time of peace, it was a lucrative activity and the later in times of wars were means of quick and easy fortunes.

Agriculture and slave trade went together. In the eighteenth century it was the French who dominated slave trade in the western Indian Ocean. The Mascarenes islands served as base to encourage the trade. Slaves were taken from Madagascar and the Eastern Africa to the Mascarenes isles, from South Africa and the Carribean. Slaves also arrived from India. With the royal policy of free trade, ships arrival from Madagascar tripled. Ships carried extensive cattle trade parallel to slave trade and at the beginning of the 19th Century 20,000 live cattle were brought per year from Foulpointe alone. Foulpointe, Fenerive, Mohambo, Tintingue, Ste Marie, Mananara and Antogil bay were French slave trading post dealing with the Mascarenes according to Toussaint. Slave trade has set the base for commercial and trading activities within the Indian Ocean and the world. It was a lucrative business as slaves provided both a cheap mean of production and could be sold as assets at higher price with consequent profit after one year. It continued till 1822 when the Alglo-Merina treaty was signed.

In time of wars between the British and the French, corsair activities became each time the main source of income for the island and with the policies of the royal government a new boost would be given to this activity. The king wanted to develop the port into a sophisticated naval base for the French in the Indian Empire to shelter warships and squadrons. Chevalier De Tromelin a naval engineer arrived in 1768 and by 1770 submitted a development scheme. It must be noted that not much work had been done in the harbor since the time of Labourdonnais. The harbor was full of carcasses of ships from shipwreck. It was blocked by fourteen shipwrecks. Dredging of the harbor from mud and diversion of streams were again necessary. It took 10 years to complete the task. The harbor could now accommodate up to ten ships and several frigates. Furthermore, camps for African seamen were built near Trou Fanfaron. So as to encourage ships to come, dues which were paid, on the entry of the port were abolished. Workshop of carpenters, ?cordiers?, blacksmith, of ?tonnelier? and ?armuriers? were built along the length of the port. The royal administration put order in the port and around the port area. An Iron foundry was established and supplies of gunpowder cons and other materials for the army were produced. With the arrival of such people as The Duc De Berry, The Duc D?Acruitaine and Acaille as well as others a ?bourgeoisie de la marine? would emerge.

The peace of Amiens would provide fresh stimulus from inflow of prizes taken by the corsairs. In 1807 ?La Semillante? took part in five battles and her last prize was a merchant ship filled with sugar worth between 6000 to 7000 piastre. The American War of Independence broke out on February 1778, the American colonists were fighting against the British for Independence and the French saw in it the possibility to take revenge on what happened in India. Five ships under admiral Trojoly form the naval force to fight against the British in the Indian seas. During that period 116 ships left for India. Three more ships left for Batavia, Madagascar and Mozambique. All went with replenished stores. The ordinance of the first August 1768 proclaimed that all male residents aged between 15 and 55 years must serve in the militia. There were 111 raiding cruises ? corsair activity was estimated by Milburn to some ?2?500,000 the market was saturated with goods seized from British ships. The merchants often turned their ships into privateering. The most famous corsairs were Captain Deschien, De Kerulay, Dubignon and Chandeuil. We have the example of David a trader who owned powerful trading houses and this also proved that privateering and corsair activities gave a boost to commercial activities in the island making Isle De France the warehouse of the Indian Ocean. He armed two Corsair ships. The Salomon and the ?Sainte Marie? which attacked British ships. The ?Merchant of Bombay? in 1780 and captured a prize worth ?1,500,000.

The Prefet Colonial was in charge of selling the goods and distributing the profits. Soldiers and sailors working for the government deserted to go for privateering activities. Those who carried attacks were given ?letters De Marques? and were called ?Corsair? and were given the status of heroes. From 1803 to 1810 there were 82 expeditions. Famous names like Lemem, Lenouvel and Robert Surcouf emerged. Robert Surcouf captured 47 ships, he was known as the ?king of Corsairs?. He suggested to Napoleon to attack the trading ship of British to annihilate British commerce. There was great inflow of goods with prices lower than in Europe. Warehouses were piled with colonial produce and cargoes of captured ships. To obtain supply or get rid of accumulated products and cargoes of captured British ship, goods were sent to France. By 1808 most corsairs were captured or kill, after the capture of the Cape of Good Hope in 1806. This was the end of Isle De France as a Naval base.

It was the ports of the island which were the pole of attraction among the different nations wishing to control the Indian Ocean. The Dutch as well as the French early East India Company wanted a port of call for passing ships. However, the Royal government saw much more that a simple victualling station. Port Louis was to become a Naval base for France in the Indian Ocean and a powerful pole of attraction of commercial ships. In time of peace slave and spice trades would occupy the scene and in time of wars, the island was converted into a nest of corsairs. Corsair activities become a lucrative activity serving the political design of France. In so doing the island as a whole knew unprecedented development in terms of infrastructures and standard of living.

Bibliography

1- Ile De France 1747 ? 1767

Hugette Ly Thio Fane-Pineo

2- Port-Louis a Tropical City

Auguste Toussaint

3- A New History of Mauritius

Hazareesing and John Addison

4- Mauritian History

Vijaya Teeluck

5- HistoireDe La Colonie 1721 ? 1968

Amedee Nagapen

6- A Concise History of the Dutch in Mauritius

P. J. Moree

7- The Making Of Mauritius

Nath Varma

Tax: Should you live in France you will be taxed on your total income whether generated within France or abroad. It does not matter what nationality you are if you spend more than 183 days per year in France you are considered as French domiciled and still taxed on your world wide income. For those not domiciled in France you are still liable for any income from French sources; this includes rent from letting out your property and any income derived from working in the country. The authorities in both the country in which you normally reside and France will be interested in your earnings and if it is above a certain threshold you could be liable in both countries unless there is a double tax treaty between the countries as exists between all EU members and many other countries. However it is very important to notify the authorities if you are making a permanent move to France before the event in order to take advantage of this treaty. It should also be noted that in France taxes are not deducted using the PAYE system as in England but each individual must fill in their own self assessment form whereby taxes are paid the year after which the income is earnt which runs from January the 1st to December the 31st. To do this you must first register at the “Centre des Impots” which is the local tax centre.

Income tax: This ranges from tax levied on “earned income” which is a progressive tax to tax on “unearned income” such as investment income based on interest from bank accounts and property yields. There is a seperate tax levied on your gross rental income if you let out your French Property. France still strongly favours the family unit and there are distinct advantages in terms of reduced tax liability if you are a large family as tax is assessed on a household basis. If you are married and/or have children in the family you pay less tax as there are more dependants; this is called the “quotient familial”. There are also other allowances such as those for childcare and domestic help all of which go towards making large families in France pay less tax than anywhere else in Europe. If you are unmarried or united only by the PACS agreement then you are likely to pay more tax than married couples not just with regard to income tax but also inheritance tax.

Property tax: Two property taxes exist in France: taxe fonciere and taxe d’habitation. Taxe fonciere is paid by the property owner regardless of whether you live there or abroad, but there is an exemption for two years for newly built properties. Taxe d’habitation on the other hand is paid by whoever occupies the building at the time, hence if it is rented out it is paid by the tenants. Both taxes form part of what we know in the UK as council tax and are paid the year after the rental period with special allowances for retirees and dis-used, inhabitable properties.

Capital Gains Tax: This tax is paid on the profits of any property which has been sold to include jewellery, securities, shares and real estate. However, fortunately there are no taxes to be paid on the sale of your principle residence but only on sales of additional property. People who rent their main home are exempt if they sell their second home as well as those who have owned the house for 15 years or more. If a property is sold within two years then it is subject to 33. 3% capital gains and this falls by 5% a year and multiplied by an index linked multiplier of the eventual sale price of the property until the 15 years are up. If you have renovated your property or spent money on legal or agency fees the cost of these can be offset against your profits.

Inheritance tax: The system in France is very different to that which you might find in England or anywhere else and it is advisable to talk to a tax advisor BEFORE you buy your property in France to prevent future burdens on your family or partner. Whether you are a resident or not in France you will still have to conform to french succession law and your family will still be liable to pay inheritance duty in France upon your death. It is also important to note that French succession law will not allow for you to leave out any of your children in favour of your spouse and will ensure that they get their share. There are however, a number of different ways to minimise their burden depending on your situation. Below we outline a number of different contracts that can be made. A very popular and useful way of lessening your relatives’ inheritance tax if the tax in France is greater than it would be in your home country is to form an SCI which is a property holding company. The property in question can be divided into shares and these shares can be distributed as you wish with the result that any future inheritance tax on the property will be subject to the laws in the country in which you are a resident. It is also a good solution for those in a complex family situation living with people who are not members of their family. Shares can be freely given to a partner or children whereby inheritance tax will be avoided if done at least 10 years prior to death of the owner of the shares. For married couples who wish their half of the property to go to the surviving spouse then the “clause tontine” is a good option. It is like a joint tenancy agreement and essentially suspends the ownership of the property until either spouse dies so that the entire property is owned by the surviving spouse. They will, however, still have to pay inheritance tax on half of the property. Another way to ensure that your half of the property in question goes to your spouse is to make a change of the matrimonial regime so that your properties are no longer separated. You must have been married for at least two years and prepared to pay some legal charges but it will mean that the surviving spouse will only pay 1% tax on the property as “registration duty”. This system can get complicated if there are children involved from current or past marriages as they still retain certain rights to the property and legal advice should be taken. In 1999 a new contract called PACS was also brought in under French law giving certain benefits to same and different sex couples which were not previously available. These inheritance and fiscal rights are not as beneficial as those available to married couples but are certainly an improvement on the previous situation.

Wealth tax: This is a tax levied on assets that exceed 720,000 Euros and covers a wide range of assets to include your property and bank balances amongst other things. If you are resident in France but not domiciled there then you will only be taxed on what you have in France. If domiciled there as well then the tax applies to your entire fortune all over the world.

The French real estate market has been booming over the course of the past ten years. Indeed, since the birth of the European Union, a greater number of foreign nationals have taken to purchasing property within the country of France

When it comes to the sale of real estate in and across France, there are two primary areas in which the real property market has been hot. On the one hand, in major cities in France — particularly in the French capital of Paris — newly constructed residential properties have experience a brisk business and trade. A notable number of foreign nationals have taken to purchasing new residential properties in major cities such as Paris in the past five or six years.

In addition to the fast paced market in new residential properties in major French cities, older, larger residences in more rural regions are also in demand. Foreign nationals are making up a significant portion of the group of purchasers who are seeking out and purchasing these types of older, larger properties in rural areas in the country.

Investment Property in France

Like other nations comprising the European Union, France has experienced an up tick in the number of foreign nationals who are investing in commercial real estate in France since the creation of the EU. The pan-European marketplace has created an environment in which investing across national boundaries and throughout Europe has become a profitable enterprise for many men and women.

One example in which foreign investors have played a significant role in real property is found in the number of foreign nationals who have invested in real estate associated with the retail trade in major French cities. Indeed, within Paris alone, the number of foreign investors in commercial real estate, most particularly in buildings and property associated with retail operations, has increased by over 100% in recent times.

Overall, the commercial real estate market in major French cites has proven to be a very profitable investment for many foreign nationals. Most analysts agree that the commercial real estate marketplace should remain a stable and solid investment for investors, including foreign nationals, well into the next decade.

Even with some of the civil unrest that has been experienced in some locations in France during the past year, the real estate market has not experienced any real aftershocks as a result of this restiveness in some parts of the nation.

Residential Real Estate in France – Single Family Properties

As mentioned previously, the residential real estate market has been hot in many locales throughout France. In the major cities, newly built properties have been the subject of brisk sales in recent years. Many foreign nationals have been found snatching up these new residences in Paris and in other larger French cities.

In addition to newly built properties in larger French cities, rural residences have also traded on the marketplace steadily over the course of the past decade. Many foreign nationals have taken to purchasing larger residences in rural areas in France for retreat and holiday or vacation properties. For many years, France has been a destination of choice for holiday travelers from much of Europe and from other ports of call around the globe.

Residential Real Estate in France – Apartments

In the 21st century, the resort communities in France remain some of the most popular destinations for travelers and tourists from around the world. When it comes to French resorts, including the magnificent cities located on the French Riviera, many travelers and visitors actually return to these cities time and again for holiday stays. As a result, the demand for residential properties to be used for vacation purposes runs high in some of these communities. Apartments in resort communities have been in steady demand over the course of the past twenty years.

For the most part, apartments for sale in French resort communities are priced high. Buying an apartment in a major French resort community does not come cheap.

In addition to resort communities, Paris has also experienced a significant increase in the number of new and more expensive apartment units that are being constructed each and every year. Many foreign nationals have taken to purchasing apartments in the French capital city — particularly since the inception of the European Union and the integrated European economic community.

Holiday Property in France

As mentioned previously, vacation real estate has been in high demand in France in recent years. The French resorts, most particularly those resorts in and around the French Riviera, have experienced brisk business in vacation real estate. Generally speaking, these properties come in the form of apartments that are being snatched up by foreign nationals at record rates.

In Paris as well a significant number of residential properties are sold each year to foreign nationals that intend to make use of these properties for vacation or holiday purposes. As in the resort communities, apartments tend to be the residential property of choice for people seeking vacation or holiday properties in the capital city.

Finally, when it comes to vacation or holiday properties in France, rural residences are also greatly in demand. There are some spectacular (and large and expensive) estates that are on the market at this point in time, a good share of them having been purchased by foreign nationals for vacation purposes. Rural French residences are expected to remain in high demand by foreign nationals for use as vacation or holiday properties well into the next decade, according to real estate analysts in France.

Specific steps to buying real estate property in France

The first step that occurs in the real estate buying process in France is an oral agreement to make a purchase. The oral stage of the real estate buying process is informal and actually not legally binding. However, once a buyer conveys a purchasing price to a seller, and if the seller agrees on that offering price, movement towards a binding agreement which is known in France as the compromis de vente.

At its essence, the compromis de vente is a conditional or preliminary agreement to purchase real estate,

Generally speaking, the compromis de vente will set forth those steps and acts that must be taken and that must occur before a final contract will be entered into between the parties and before ownership of the real estate will transfer from the seller to the buyer. For example, after the signing of the compromis de vente, the buyer will have to obtain suitable and appropriate financing while the seller will have to work to make certain that the title to the property is free and clear and that the real estate can be transferred to the buyer without any encumbrances.

At the time the parties enter into the compromis de vente, the buyer will have to make what normally amounts to a deposit in the amount of 10% of the total purchase price. There are limited instances when the deposit is refundable. For example, if free and clear title to the property cannot be arranged during the time period set forth within the compromis de vente, the buyer can back out of the deal and get the deposit money back. However, barring something of this nature, if the buyer does back out of the agreement, he or she generally will lose the deposit money that has been paid pursuant to the terms and conditions of the compromis de vente.

It is highly recommended that the deposit be paid to either a qualified solicitor or a designated notaire. A solicitor or notaire will hold the money until all of the requirements and obligations of the compromis de vente appropriately are completed and concluded. At that time, the money will be paid to the seller if the deal goes through or will be refunded to the buyer under limited circumstances as outlined previously.

Generally, there are legal fees of under 10% that are associated with most real estate sales in France. These fees are due to be paid upon the completion of the sale — at the same time that the balance due on the overall property sale is paid by the buyer.

The real estate agency will also be entitled to a commission. Negotiations between the parties will determine whether it is the buyer or the seller who will pay these fees. The real estate agency fees can be as low as 5% of the purchase price or as high as 10% of the purchase price in some instances.

There are restrictions on how much of the purchase of real estate a foreign national can finance in France. If a foreign national is a citizen of another European Union nation, that person can finance up to 85% of the total purchase price of the real estate. If a foreign national is from a country beyond the European Union, he or she can only finance up to 80% of the total purchase price of the property. On the other hand, a French citizen can finance 100% of the purchase price of the real estate in question.

The final agreement in the real estate sales transaction is what is known as the acte de vente (which roughly translates as the final deed for sale). This agreement is to be signed in front of an official notaire.

Property Abroad always recommends using a Solicitor or Lawyer.