FOREIGN officials and consuls formed a special clique in the years of the late Qing Dynasty (1644-1911). On behalf of the authorities of their own countries, the foreign officials played an important role in developing and managing many aspects of the foreign concessions in the city, including politics, administration, economics and social policy.

To some extent, the rights of the concessions were seized upon by consuls, who enjoyed the benefits of extra-territoriality. Along with the consuls, another important professional group was composed of foreign customs officers whose importance was based upon the significant status of Shanghai. If they controlled the customs of Shanghai, it meant they controlled the economic umbilical cord of China.

Although these two professions only amounted to a small fraction of the whole foreign population living in Shanghai, the role they played could not be replaced by any other group, since the main mission they undertook was to defend the commercial benefits to be gained in Shanghai, as well the whole of China.

While consuls belonged to the diplomatic institutions set up by foreign governments, customs offices were established by the Chinese authorities, with each foreign customs officer being - in theory - the employee of China's government.

It has been estimated that in the period from 1843 to 1910, the foreign residents in Shanghai came from at least 24 countries. Most were attracted to Shanghai by its stunning development and future prospects.

In November 1843, Britain was the first country to establish its consulate in Shanghai. Later, the US, France, Portugal, Germany and other countries also set up their consulates in the city, one by one. During the late period of the Qing Dynasty, national flags in different colours and styles flew on the Shanghai skyline.

Among the foreign consuls, those of Britain, France and the US had the widest influence and political advantages compared with those of other countries. In a certain respect, the consulates from these three countries were the real force governing the society of the concessions, but the rights enjoyed by the British and US consulates were different from those of the French.

When the British concession was first set up in Shanghai, nearly all rights were under the control of the consul who read and commented on each resolution and made decision on anything concerning the Shanghai Land Transfer Regulations.

But in 1854, when the Shanghai Municipal Council was established, his direct control became more indirect. Britain's consulate in Shanghai did not usually interfere with the Shanghai Municipal Council in its financial management and related regulations. Therefore, the Shanghai Municipal Council had considerable freedom to make its own decisions. But when the British consul disagreed with the opinions of officers from the Shanghai Municipal Council, the opinions of the consul were more authoritative.

In comparison with the British consul, the French consul had more apparent power. All the political power in the French concession was in his hands. But the French consul also had his own difficulties, despite being the most powerful man in the French concession. He had to find ways to make sure that French residents could keep their dominant place in its own Municipal Council, also known as the Gong Dong Ju.

For a long time in the late Qing Dynasty, consuls were also judges of their own consular courts. Because of their unlimited power, some consuls abused their authority. In 1906, Britain, France and other countries gradually separated the judicial power from the consular power.