Invasion of the Nawab of Oudh.
The Nawab of Oudh had long desired to get possession of the Bengal provinces, and thought to secure them by making the Prince Imperial a cat's paw. He proclaimed that the Prince Imperial had been invested by his father with the government of Bengal, Behar, and Orissa. He then sent the Prince forward with a large force to enforce the proclamation, whilst he himself remained behind in Oudh and awaited events.[7] To make matters worse, the Hindu officials in the Bengal provinces, who had been dispossessed, or were expecting to be dispossessed, were preparing to join the invaders.
Clive's difficulty.
Mir Jafir was in a panic of fear at the appearance of the Prince Imperial, and proposed to pay him a sum of money to go away. Clive would not listen to the suggestion. He ignored the Prince Imperial and the Great Mogul, and soon routed the invading army. The Prince Imperial then became a suppliant to the British, and implored Clive for help; but Clive had been requested by the Vizier at Delhi to arrest the fugitive, and would not commit himself. He, however, sent a bag of 500 mohurs, about 800l. sterling, to relieve the immediate necessities of the Prince Imperial, and the money was gladly received by the impoverished fugitive.
Wanted, a British army.
Meanwhile, Clive was at his wits' end for money. The Bengal provinces could be held against any enemy in India by a standing army of Europeans and sepoys. Such an army could be maintained for half a million sterling per annum, and the public revenue amounted to three or four millions; but the Nawab refused to disband his own rabble soldiery, and pretended that he could not pay the Europeans.
Solution.
At this crisis Clive received a secret and startling proposal from the Vizier at Delhi, that he should accept the post of Dewan to the Great Mogul for Bengal, Behar, and Orissa. In the palmy days of the Mogul empire, every province was governed by two officials, the Nawab and the Dewan. The Nawab kept the peace and administered justice; the Dewan kept the public purse, received the revenues, paid all salaries, and sent the surplus as tribute to the Great Mogul. The later Nawabs had become their own Dewans, and spent the revenue as they pleased, without sending any tribute to the Great Mogul. Had Clive closed with the offer, it would have involved a mortal struggle with Mir Jafir, for it would have deprived the Nawab of all power over the public purse. But it would have removed every financial difficulty, as the Vizier would have been satisfied with a yearly tribute of half a million sterling, or even less, whilst Clive would have had the whole remaining surplus at his own disposal.
Clive's offer to Pitt, 1759.