The Situation of Mr. Watts in this Conjuncture, is much more easy to conceive than to describe. He was oppressed with Cares, environed with Perils, and had not so much as a single Person with whom to communicate or to consult. His own Safety, the Welfare, and even the Being of the British Settlements, and indeed the future Fate of these Provinces, depended, at least in the first Instance, on his Capacity, Penetration, and Discretion. It was a very arduous Task to form any clear Opinion upon this Offer; it demanded much Skill to set the Motives upon which such an Opinion must be founded in their proper Light; and, when all this was done, it appeared infinitely hazardous to transmit Propositions of this Nature, together with his Thoughts upon them, to Calcutta, while a jealous Prince, in a Country where the Character of a Spy is not dishonourable, had Multitudes of such State Implements about him, all filled with the Hopes of rising upon his Ruin. But though perfectly sensible of all this, as he must have been to counteract their Vigilance, he boldly undertook, and as happily performed, all that the Confidence reposed in him, or his Duty to the Company could demand. He stated fully the Nature of these Overtures, the Suba's Disposition at the Time, the Characters and Credit of the principal Officers about him, their Tempers, Circumstances, and Connections, the Probability that such a Design might be carried into Execution, the Hazards to which it must be exposed, and the Methods most proper to avoid them. But when he had done all this, he added no direct Judgment of his own. He contented himself with giving Lights, without venturing to pronounce what Measure ought to be taken. He had frequent Experience of the Regard paid by them to his Sentiments, from his having commonly sent them the Draughts of the Letters to the Suba, which being transmitted back to him, he presented to that Prince; but he held this to be a Matter too difficult, as well as too delicate for him to determine. He knew very well there was no small Danger in Delay; but he likewise knew, that there was still more Danger in a rash Decision, and therefore he gave none. The Select Committee concurred with him in this; they entertained the Motion, commended his Caution, suggested that he should continue to keep Things in Suspense, but directed him by all Means to avoid concluding any Thing, till he should receive their future Directions in a Thing of so great Weight.

It was not long after this, that Meer Jaffeir Aly Cawn, a Person of great Distinction, who had married the Sister of Aliverdy Cawn, the Suba's Grandfather and Predecessor, sent one in whom he could perfectly confide to Mr. Watts, to disclose what were his real Opinions, and how very short a Space he thought was like to intervene, before the Suba took the Field once more, against the English. This Person had it farther in Commission to represent, that the Disaffection of the principal Officers, Civil and Military, was in a manner general; that Meer Jaffeir never appeared in the Suba's Presence, without Fear of being assassinated; and that for this Reason, whenever he was constrained to go, he always caused his Forces to be drawn out, under Arms, with his Son at their Head. In the Close of his Discourse, he added, that a Determination was already taken, to depose, for their own Sakes, Suraja Dowlat; and that if the English would engage with, and promise to support, another Person, in assuming the Dignity of Suba, Rahim Cawn, Roydoolub, and Bahadar Aly Cawn, were ready to join Meer Jaffeir, in removing Suraja Dowlat, whose Affairs would be then in a very desperate Situation. Mr. Watts transmitted the Detail of this Conversation also to Colonel Clive, and gave it as his own Opinion, that Meer Jaffeir was by far the properest Person to be elevated to that Rank, as his Abilities were greater, his Reputation better, and his Connections more extensive than those of Laitty. He at the same time acquainted the Colonel, that if this Change was to be accomplished by their Forces, as he much doubted, whether, after all, the Moors had Spirit enough to attempt so extraordinary an Enterprize themselves, it would be right to form the Outlines of a new Agreement, of which the old one ought to be the Basis; and to frame such additional Articles, as might effectually indemnify the Company for the Risk they ran, and procure an ample Satisfaction for the Losses private Persons had sustained, in the Devastation of Calcutta, of which no Care had been taken in the former Treaty; and that, in short, nothing should now be omitted, that might put their Affairs for the future upon a firm and stable Establishment; so that, in case of Disturbances in the Country, the Servants of the Company, and those who depended on it, might be in a Condition to protect themselves.

As these Transactions were of a very delicate Nature, and were to be conducted with much Discretion, and of course with some Delay, the Suba had a Season of Recess, in which, by a Change of Measures, he might have recovered his Authority, have resettled his distracted Government, and repaired all his past Errors. He not only neglected this entirely, but continued acting, in every respect, as if he had aimed at his own Destruction. He endeavoured to negotiate Succours from some of his Neighbours, who, though they knew not the Weakness of his Condition, and therefore civilly entertained his Proposals, had however such an Opinion of the Weakness of his Conduct, that nothing could induce them to enter into his Measures. He continued corresponding with Mr. Bussy, from whom he received Letters, which served to support and increase his Delusion, and to flatter him with the Hopes of seeing an Army of Twenty thousand Men in his Dominions, which, could he have brought them, would have tended only to have impoverished his Subjects, and to have given him new Masters, under the Title of old Allies. He was courted all this time by Colonel Clive to lay down his Arms, to settle the few remaining unaccomplished Articles in the Treaty, and, above all, to put the Trade of his Territories into its usual Channel, for the common Benefit of the Europeans and the Natives. To these Solicitations he gave no Answers, or such as afforded no sort of Satisfaction; but, on the contrary, indicated very plainly, by every Step he took, that he meditated new Disturbances, and waited for what should appear to him a favourable Occasion for renewing the War. In reference, on the other hand, to his own People, he grew every Day more and more intolerable, removing, disgracing, insulting, those whom he had formerly treated with the greatest Marks of Favour and Respect, and of whom several fled privately and in Disguise to seek Shelter in the English Territories, and particularly in that of Cassimbuzar. By this Behaviour he not only augmented the Disaffection that had already spread so far amongst his Servants, but likewise furnished so many and such authentic Proofs of his having still the same Points in View, that he had at his Entrance on the Administration, and of the Obstinacy of his Aversion to the English, so contrary to the Mutability of his Temper in every thing else, that it contributed exceedingly to fortify the Sentiments of those, who maintained, that the Peace of that Part of India could never be effectually restored, so long as he held the Supreme Power.

After the Propositions made by Mr. Watts had been duly canvassed, and their Importance maturely considered, by the Select Committee, who upon this Occasion framed and took an Oath of Secrecy, they were unanimously approved, and the Project or Draught of a new Treaty was transmitted to him. But at the same time there was great Latitude left, in case of Objections; and he was requested to procure as many and as large Concessions as might be, in case he found it impracticable to obtain every one of the Conditions in the full Extent that they desired. Indeed they relied so entirely upon him, that a Blank was left for the Company's Demand in their Draught of the Treaty for him to fill up; and how it was filled up, will appear from the Treaty itself. This was not only expedient but necessary, as he was upon the Spot, knew the Persons with whom he was treating, their Connections and Circumstances, and the Motives which might render any of these Demands agreeable or disagreeable. The use Mr. Watts made of this Confidence was such as it deserved, and turned not a little to the Advantage of those who gave it. He was himself perfectly sensible, and took all imaginable Pains to make those he dealt with no less sensible, that, notwithstanding this Change was for their mutual Benefit, yet the Weight, the Hazard, and the Expence, would fall principally at least, very probably wholly, upon the English. He represented, therefore, effectually, that for such extraordinary Assistance, which alone could put the Means of making it into their Power, a proper Satisfaction ought in Justice to be made, and that this suitable Satisfaction should be made likewise in a proper Manner. He was apprehensive also, upon this Head, that a false Delicacy might produce future Disputes, and therefore very prudently provided, that the unliquidated Demands in the Sketch should be reduced to a Certainty. He also enlarged the Sums stipulated for the Losses of private Persons, and distinguished them under National Heads; that, if possible, no Jealousies or Heart-burnings might arise in the Colony, when they came to be actually paid.

The surest as well as the shortest Method of setting this Matter in a true Light, and that will at once place it in the strongest, is to insert the original Plan of the new Alliance, as transmitted to Mr. Watts, and then the Project settled by that Gentleman, which the Reader will hereafter have an Opportunity of comparing with the Alliance concluded.

Copy of the Articles of Agreement
sent by Colonel Clive to William
Watts
, Esq; May 2, 1757.

An Alliance offensive and defensive against all Enemies: The French Fugitives to be taken and delivered up to us; all their Factories to be delivered up to us, in order to be destroyed; the French never to be permitted to re-settle in this Subaship; in Consideration of which, the English Company will annually pay the Amount of Duties usually paid into the King's Treasury on the French Trade, or a Sum not exceeding Fifty thousand Rupees annually.

Restitution of the Company's Loss, by the taking of Calcutta, and their Out Settlements; also Restitution for the Losses of all Europeans by Ditto, as may be stated fairly by Admiral Watson, the Governor, Colonel Clive, William Watts, Esq; Major Kilpatrick, and Mr. Becher.

Blacks and Armenians are not included.

That the whole of our Phirmaund be complied with, and all other Grants made to us, particularly in the Treaty with Suraja Dowlat.