Article 4.—The British Government having demanded from the Lahore State as indemnification for the expenses of the war, in addition to the cession of territory described in Article 3, payment of one and a half crores of rupees; and the Lahore Government being unable to pay the whole of this sum at this time, or to give security satisfactory to the British Government for its eventual payment; the Maharajah cedes to the Honourable Company, in perpetual sovereignty, as equivalent for one crore of rupees, all his forts, territories, rights, and interests, in the hill countries which are situate between the rivers Beas and Indus, including the provinces of Cashmere and Hazarah.
Article 5.—The Maharajah will pay to the British Government the sum of fifty lacs of rupees on or before the ratification of this treaty.
Article 6.—The Maharajah engages to disband the mutinous troops of the Lahore army, taking from them their arms; and his Highness agrees to reorganize the regular, or Aieen, or regiments of infantry, upon the system, and according to the regulations as to pay and allowances, observed in the time of the late Maharajah Runjeet Singh. The Maharajah further engages to pay up all arrears to the soldiers that are discharged under the provisions of this article.
Article 7.—The regular army of the Lahore State shall henceforth be limited to 25 battalions of infantry, consisting of 800 bayonets each, with 12,000 cavalry: this number at no time to be exceeded without the concurrence of the British Government. Should it be necessary at any time, for any special cause, that this force should be increased, the cause shall be fully explained to the British Government; and when the special necessity shall have passed, the regular troops shall be again reduced to the standard specified in the former clause of this article.
Article 8.—The Maharajah will surrender to the British Government all the guns, thirty-six in number, which have been pointed against the British troops, and which, having been placed on the right bank of the river Sutlej, were not captured at the battle of Sobraon.
Article 9.—The control of the rivers Beas and Sutlej, with the continuations of the latter river, commonly called the Garrah and Punjnud, to the confluence of the Indus at Mithenkote, and the control of the Indus from Mithenkote to the borders of Beloochistan, shall, in respect to tolls and ferries, rest with the British Government. The provisions of this article shall not interfere with the passage of boats belonging to the Lahore Government on the said rivers, for the purposes of traffic, or the conveyance of passengers up and down their course. Regarding the ferries between the two countries respectively, at the several ghâts of the said rivers, it is agreed that the British Government, after defraying all the expenses of management and establishments, shall account to the Lahore Government for one half of the net profits of the ferry collections. The provisions of this article have no reference to the ferries on that part of the river Sutlej which forms the boundary of Bhawulpore and Lahore respectively.
Article 10.—If the British Government should, at any time, desire to pass troops through the territories of his Highness the Maharajah, for the protection of the British territories, or those of their allies, the British troops shall, on such special occasions, due notice being given, be allowed to pass through the Lahore territories. In such case the officers of the Lahore State will afford facilities in providing supplies, and boats for the passage of rivers; and the British Government will pay the full price of all such provisions and boats, and will make fair compensation for all private property that may be endamaged. The British Government will moreover observe all due consideration to the religious feelings of the inhabitants of those tracts through which the army may pass.
Article 11.—The Maharajah engages never to take, or retain, in his service, any British subject, nor the subject of any European or American State without the consent of the British Government.
Article 12.—In consideration of the services rendered by Rajah Goolab Singh of Jummoo to the Lahore State, towards procuring the restoration of the relations of amity between the Lahore and British Governments, the Maharajah hereby agrees to recognise the independent sovereignty of Rajah Goolab Singh, in such territories and districts in the hills as may be made over to the said Rajah Goolab Singh by separate agreement between himself and the British Government, with the dependencies thereof, which may have been in the Rajah's possession since the time of the late Maharajah Khurruk Singh: and the British Government, in consideration of the good conduct of Rajah Goolab Singh, also agrees to recognise his independence in such territories, and to admit him to the privileges of a separate treaty with the British Government.
Article 13.—In the event of any dispute or difference arising between the Lahore State and Rajah Goolab Singh, the same shall be referred to the arbitration of the British Government; and by its decision the Maharajah engages to abide.