In our letter of the 28th January last we stated the reasonableness of our expectation that certain contributions towards the expenses of the war should be made by the Rajah of Tanjore.  Since writing that letter, we have received one from the Rajah, of the 15th of October last, which contains at length his representations of his inability to make such further payment.  We think it unnecessary here to discuss whether these representations are or are not exaggerated, because, from the explanations we have given of our wishes for a new arrangement in future, both with the Nabob of Arcot and the Rajah of Tanjore, and the directions we have given you to carry that arrangement into execution, we think it impolitic to insist upon any demands upon the Rajah for the expenses of the late war, beyond the sum of four lacs of pagodas annually:  such a demand might tend to interrupt the harmony which should prevail between the Company and the Rajah, and impede the great objects of the general system we have already so fully explained to you.

But although it is not our opinion that any further claim should be made on the Rajah for his share of the extraordinary expenses of the late war, it is by no means our intention in any manner to affect the just claim which the Nabob has on the Rajah for the arrears due to him on account of peshcush, for the regular payment of which we became guaranty by the treaty of 1762; but we have already expressed to you our hopes that the Nabob may be induced to allow these arrears and the growing payments, when due, to be received by the Company, and carried in discharge of his debt to us.  You are at the same time to use every means to convince him, that, when this debt shall be discharged, it is our intention, as we are bound by the above treaty, to exert ourselves to the utmost of our power to insure the constant and regular payment of it into his own hands.

We observe, by the plan sent to us by our Governor of Fort St. George, on the 30th October, 1781, that an arrangement is there proposed for the receipt of those arrears from the Rajah in three years.

We are unable to decide how far this proposal may be consistent with the present state of the Rajah’s resources; but we direct you to use all proper means to bring these arrears to account as soon as possible, consistently with a due attention to this consideration.

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CLAUSES H.

You will observe, that, by the 38th section of the late act of Parliament, it is enacted, that, for settling upon a permanent foundation the present indeterminate rights of the Nabob of Arcot and the Rajah of Tanjore with respect to each other, we should take into our immediate consideration the said indeterminate rights and pretensions, and take and pursue such measures as in our judgment and discretion shall be best calculated to ascertain and settle the same, according to the principles and the terms and stipulations contained in the treaty of 1762 between the said Nabob and the said Rajah.