the half, and give it to private creditors, of whose demands there are only about a sixth part which do not stand in a predicament that you declare would not entitle them to any aid or protection from us in the recovery thereof, were it not upon grounds of expediency, as will more particularly appear by the annexed estimate.  Until our debt shall be discharged, we can by no means consent to give up any part of the seven lacs to the private creditors; and we humbly apprehend that in this declaration we do not exceed the limits of the authority and rights vested in us.

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THE RIGHT HONORABLE THE COMMISSIONERS FOR THE AFFAIRS OF INDIA.

The Representation of the Court of Directors of the East India Company.

My Lords and Gentlemen,—­

The Court, having duly attended to your reasonings and decisions on the subjects of Arnee and Hanamantagoody, beg leave to observe, with due deference to your judgment, that the directions we had given in these paragraphs which did not obtain your approbation still appear to us to have been consistent with justice, and agreeable to the late act of Parliament, which pointed out to us, as we apprehended, the treaty of 1762 as our guide.

Signed by order of the said Court,

THO.  MORTON, Sec.

EAST INDIA HOUSE, the 3rd November, 1784.

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Extract of a Letter from the Commissioners for the Affairs of India, to the Court of Directors, dated 3rd November, 1784, in Answer to their Remonstrance.

SIXTH ARTICLE.

We think it proper, considering the particular nature of the subject, to state to you the following remarks on that part of your representation which relates to the plan for the discharging of the Nabob’s debts.

1st.  You compute the revenue which the Carnatic may be expected to produce only at twenty lacs of pagodas.  If we concurred with you in this opinion, we should certainly feel our hopes of advantage to all the parties from this arrangement considerably diminished.  But we trust that we are not too sanguine on this head, when we place the greatest reliance on the estimate transmitted to you by your President of Fort St. George, having there the best means of information upon the fact, and stating it with a particular view to the subject matter of these paragraphs.  Some allowance, we are sensible, must be made for the difference of collection in the Nabob’s hands, but, we trust, not such as to reduce the receipt nearly to what you suppose.

2ndly.  In making up the amount of the private debts, you take in compound interest at the different rates specified in our paragraph.  This it was not our intention to allow; and lest any misconception should arise on the spot, we have added an express direction that the debts be made up with simple interest only, from the time of their respective consolidation.  Clause F f.