The twelve lacs annually to be received are then to be applied,—­

1.  To the growing interest on the Cavalry Loan, at twelve per cent.

2.  To the growing interest on the debt of 1777, at six per cent.

The remainder to be equally divided:  one half to be applied to the extinction of the Company’s debt; the other half to be applied to the payment of growing interest at 10_l._ per cent, and towards the discharge of the principal of the debt of 1767.

This arrangement to continue till the principal of the debt 1767 is discharged.

The application of the twelve lacs is, then, to be,—­

1.  To the interest of the debt of 1777, as above.  The remainder to be then equally divided,—­one half towards the discharge of the current interest and principal of the Cavalry Loan, and the other half towards the discharge of the Company’s debt.

When the Cavalry Loan shall be thus discharged, there shall then be paid towards the discharge of the Company’s debt seven lacs.

To the growing interest and capital of the 1777 loan, five lacs.

When the Company’s debt shall be discharged, the whole is then to be applied in discharge of the debt 1777.

If the Nabob shall be prevailed upon to apply the arrears and growing payments of the Tanjore peshcush in further discharge of his debts, over and above the twelve lacs of pagodas, we direct that the whole of that payment, when made, shall be applied towards the reduction of the Company’s debt.

We have laid down these general rules of distribution, as appearing to us founded on justice, and the relative circumstances of the different debts; and therefore we give our authority and protection to them only on the supposition that they who ask our protection acquiesce in the condition upon which it is given; and therefore we expressly order, that, if any creditor of the Nabob, a servant of the Company, or being under our protection, shall refuse to express his acquiescence in these arrangements, he shall not only be excluded from receiving any share of the fund under your distribution, but shall be prohibited from taking any separate measures to recover his debt from the Nabob:  it being one great inducement to our adopting this arrangement, that the Nabob shall be relieved from all further disquietude by the importunities of his individual creditors, and be left at liberty to pursue those measures for the prosperity of his country which the embarrassments of his situation have hitherto deprived him of the means of exerting.  And we further direct, that, if any creditor shall be found refractory, or disposed to disturb the arrangement we have suggested, he shall be dismissed the service, and sent home to England.

The directions we have given only apply to the three classes of debts which have come under our observation.  It has been surmised that the Nabob has of late contracted further debts:  if any of these are due to British subjects, we forbid any countenance or protection whatever to be given to them, until the debt is fully investigated, the nature of it reported home, and our special instructions upon it received.