There are two instances early on in the novel where we see two different perspectives on the conflicting cultural differences between India and England. The vast differences between cultures cause a noticeable tension between the “natives” of India and the “conquering” English transplants. The majority of chapter II is a discussion among Hamidullah, Mahmoud Ali, and Dr. Aziz. These men discuss Englishwomen and their deceiving nature, notably Mrs. Turton. They note she turns the red-nosed boy against them, encouraging him to belittle them. This leads the the comment that “The English take and do nothing. I admire them.” From an Indian perspective, they seem to view the English as manipulators.
Later on in chapter III, in a conversation between Mrs. Moore, Mrs. Callendar and Miss Quested, Mrs. Callendar views the natives as lesser peoples. She even states that “Why, the kindest thing one can do to a native is to let him die.” Later on in this same chapter, Mrs. Moore’s own son scolds her for interacting with a “native,” only to find himself relived to learn it was Dr. Aziz. He was very troubled his mother was interacting with someone he viewed as baser to his countrymen. I think both of these chapters make it clear that both Englishmen and Indians don’t view each other in high regard during a time of high tension within the country.
I was equally intrigued by the conversation you mention in your first point. However, I would argue that they view the English as something besides manipulators. Dr. Aziz and company seem to view the English as something more like evil geniuses. The quote you cite in your first paragraph is a perfect example of this characterization. “The English take and do nothing. I admire them.” The speaker describes, verbatim, his admiration of the English for their ability as conquerors (a term you use earlier in your response, which I think is much more accurate than ‘manipulators’) and administrators, while simultaneously making clear his contempt for them. I would agree that the British Empire was adept at manipulation of subjugated populations, but I don’t think that was the point being made in this specific conversation.