That the military peace establishment shall be forthwith settled and adjusted by the Company, in pursuance of the authority and directions given to them by the late act of Parliament.

As the payment of the troops and garrisons, occasional expenses in the repairs and improvements of fortifications, and other services incidental to a military establishment, must of necessity be punctual and accurate, no latitude of personal assurance or reciprocal confidence of either of the parties on the other must be accepted or required; but the Nabob and Rajah must of necessity specify particular districts and revenues for securing the due and regular payment of their contributions into the treasury of the Company, with whom the charge of the defence of the coast, and of course the power of the sword, must be exclusively intrusted, with power for the Company, in case of failure or default of such payments at the stipulated times and seasons, to enter upon and possess such districts, and to let the same to renters, to be confirmed by the Nabob and the Rajah respectively; but, trusting that in the execution of this part of the arrangement no undue obstruction will be given by either of those powers, we direct that this part of the treaty be coupled with a most positive assurance, on our part, of our determination to support the dignity and authority of the Nabob and Rajah in the exclusive administration of the civil government and revenues of their respective countries;—­and further, that, in case of any hostility committed against the territories of either of the contracting parties on the coast of Coromandel, the whole revenues of their respective territories shall be considered as one common stock, to be appropriated in the common cause of their defence; that the Company, on their part, shall engage to refrain, during the war, from the application of any part of their revenues to any commercial purposes whatsoever, but apply the whole, save only the ordinary charges of their civil government, to the purposes of the war; that the Nabob and the Rajah shall in like manner engage, on their parts, to refrain, during the war, from the application of any part of their revenues, save only what shall be actually necessary for the support of themselves and the civil government of their respective countries, to any other purposes than that of defraying the expenses of such military operations as the Company may find it necessary to carry on for the common safety of their interests on the coast of Coromandel.

And to obviate any difficulties or misunderstanding which might arise from leaving indeterminate the sum necessary to be appropriated for the civil establishment of each of the respective powers, that the sum be now ascertained which is indispensably necessary to be applied to those purposes, and which is to be held sacred under every emergency, and set apart previous to the application of the rest of the revenues, as hereby stipulated, for the purposes of mutual or common