For the accomplishment of this great and necessary object, we direct you, in the name of the Company, to use your utmost endeavors to impress the expediency of, and the good effects to be derived from this measure, so strongly upon the minds of the Nabob and the Rajah of Tanjore, as to prevail upon them, jointly or separately, to enter into one or more treaty or treaties with the Company, grounded on this principle of equity: That all the contracting parties shall be bound to contribute jointly to the support of the military force and garrisons, as well in peace as in war.

That the military peace establishment shall be forthwith settled and adjusted by the Company, in pursuance of the authority and directions given to them by the late act of Parliament.

As the payment of the troops and garrisons, occasional expenses in the repairs and improvements of fortifications, and other services incidental to a military establishment, must of necessity be punctual and accurate, no latitude of personal assurance or reciprocal confidence of either of the parties on the other must be accepted or required; but the Nabob and Rajah must of necessity specify particular districts and revenues for securing the due and regular payment of their contributions into the treasury of the Company, with whom the charge of the defence of the coast, and of course the power of the sword, must be exclusively intrusted, with power for the Company, in case of failure or default of such payments at the stipulated times and seasons, to enter upon and possess such districts, and to let the same to renters, to be confirmed by the Nabob and the Rajah respectively; but, trusting that in the execution of this part of the arrangement no undue obstruction will be given by either of those powers, we direct that this part of the treaty be coupled with a most positive assurance, on our part, of our determination to support the dignity and authority of the Nabob and Rajah in the exclusive administration of the civil government and revenues of their respective countries;—and further, that, in case of any hostility committed against the territories of either of the contracting parties on the coast of Coromandel, the whole revenues of their respective territories shall be considered as one common stock, to be appropriated in the common cause of their defence; that the Company, on their part, shall engage to refrain, during the war, from the application of any part of their revenues to any commercial purposes whatsoever, but apply the whole, save only the ordinary charges of their civil government, to the purposes of the war; that the Nabob and the Rajah shall in like manner engage, on their parts, to refrain, during the war, from the application of any part of their revenues, save only what shall be actually necessary for the support of themselves and the civil government of their respective countries, to any other purposes than that of defraying the expenses of such military operations as the Company may find it necessary to carry on for the common safety of their interests on the coast of Coromandel.

And to obviate any difficulties or misunderstanding which might arise from leaving indeterminate the sum necessary to be appropriated for the civil establishment of each of the respective powers, that the sum be now ascertained which is indispensably necessary to be applied to those purposes, and which is to be held sacred under every emergency, and set apart previous to the application of the rest of the revenues, as hereby stipulated, for the purposes of mutual or common defence against any enemy, for clearing the incumbrance which may have become necessarily incurred in addition to the expenditure of those revenues which must be always deemed part of the war establishment. This we think absolutely necessary; as nothing can tend so much to the preservation of peace, and to prevent the renewal of hostilities, as the early putting the finances of the several powers upon a clear footing, and the showing to all other powers that the Company, the Nabob, and the Rajah are firmly united in one common cause, and combined in one system of permanent and vigorous defence, for the preservation of their respective territories and the general tranquillity.

That the whole aggregate revenue of the contracting parties shall, during the war, be under the application of the Company, and shall continue as long after the war as shall be necessary, to discharge the burdens contracted by it; but it must be declared that this provision shall in no respect extend to deprive either the Nabob or the Rajah of the substantial authority necessary to the collection of the revenues of their respective countries. But it is meant that they shall faithfully perform the conditions of this arrangement; and if a division of any part of the revenues to any other than the stipulated purposes shall take place, the Company shall be entitled to take upon themselves the collection of the revenue.

The Company are to engage, during the time they shall administer the revenues, to produce to the other contracting parties regular accounts of the application thereof to the purposes stipulated by the treaty, and faithfully apply them in support of the war.

And, lastly, as the defence of the Carnatic is thus to rest with the Company, the Nabob shall be satisfied of the propriety of avoiding all unnecessary expense, and will therefore agree not to maintain a greater number of troops than shall be necessary for the support of his dignity and the splendor of the durbar, which number shall be specified in the treaty; and if any military aid is requisite for the security and collection of his revenues, other than the fixed establishment employed to enforce the ordinary collections and preserve the police of the country, the Company must be bound to furnish him with such aid: the Rajah of Tanjore must likewise become bound by similar engagements, and be entitled to similar aid.

As, in virtue of the powers vested in Lord Macartney by the agreement of December, 1781, sundry leases, of various periods, have been granted to renters, we direct that you apply to the Nabob, in our name, for his consent that they may be permitted to hold their leases to the end of the stipulated term; and we have great reliance[70] on the liberality and spirit of accommodation manifested by the Nabob on so many occasions, that he will be disposed to acquiesce in a proposition so just and reasonable. But if, contrary to our expectations, his Highness should be impressed with any particular aversion to comply with this proposition, we do not desire you to insist upon it as an essential part of the arrangement to take place between us; but, in that event, you must take especial care to give such indemnification to the renters for any loss they may sustain as you judge to be reasonable.

It equally concerns the honor of our government, that such natives as may have been put in any degree of authority over the collections, in consequence of the deed of assignment, and who have proved faithful to their trust, shall not suffer inconvenience on account of their fidelity.

Having thus given our sentiments at large, as well for the surrender of the assignment as with regard to those arrangements which we think necessary to adopt in consequence thereof, we cannot dismiss this subject without expressing our highest approbation of the ability, moderation, and command of temper with which our President at Madras has conducted himself in the management of a very delicate and embarrassing situation. His conduct, and that of the Select Committee of Fort St. George, in the execution of the trust delegated to Lord Macartney by the Nabob Mahomed Ali, has been vigorous and effectual, for the purpose of realizing as great a revenue, at a crisis of necessity, as the nature of the case admitted; and the imputation of corruption, suggested in some of the Proceedings, appears to be totally groundless and unwarranted.