defence against any enemy, for clearing the incumbrance which may have become necessarily incurred in addition to the expenditure of those revenues which must be always deemed part of the war establishment.  This we think absolutely necessary; as nothing can tend so much to the preservation of peace, and to prevent the renewal of hostilities, as the early putting the finances of the several powers upon a clear footing, and the showing to all other powers that the Company, the Nabob, and the Rajah are firmly united in one common cause, and combined in one system of permanent and vigorous defence, for the preservation of their respective territories and the general tranquillity.

That the whole aggregate revenue of the contracting parties shall, during the war, be under the application of the Company, and shall continue as long after the war as shall be necessary, to discharge the burdens contracted by it; but it must be declared that this provision shall in no respect extend to deprive either the Nabob or the Rajah of the substantial authority necessary to the collection of the revenues of their respective countries.  But it is meant that they shall faithfully perform the conditions of this arrangement; and if a division of any part of the revenues to any other than the stipulated purposes shall take place, the Company shall be entitled to take upon themselves the collection of the revenue.

The Company are to engage, during the time they shall administer the revenues, to produce to the other contracting parties regular accounts of the application thereof to the purposes stipulated by the treaty, and faithfully apply them in support of the war.

And, lastly, as the defence of the Carnatic is thus to rest with the Company, the Nabob shall be satisfied of the propriety of avoiding all unnecessary expense, and will therefore agree not to maintain a greater number of troops than shall be necessary for the support of his dignity and the splendor of the durbar, which number shall be specified in the treaty; and if any military aid is requisite for the security and collection of his revenues, other than the fixed establishment employed to enforce the ordinary collections and preserve the police of the country, the Company must be bound to furnish him with such aid:  the Rajah of Tanjore must likewise become bound by similar engagements, and be entitled to similar aid.

As, in virtue of the powers vested in Lord Macartney by the agreement of December, 1781, sundry leases, of various periods, have been granted to renters, we direct that you apply to the Nabob, in our name, for his consent that they may be permitted to hold their leases to the end of the stipulated term; and we have great reliance[70] on the liberality and spirit of accommodation manifested by the Nabob on so many occasions, that he will be disposed to acquiesce in a proposition so just and reasonable.  But if, contrary to our expectations, his Highness should be impressed with any particular aversion to comply with this proposition, we do not desire you to insist upon it as an essential part of the arrangement to take place between us; but, in that event, you must take especial care to give such indemnification to the renters for any loss they may sustain as you judge to be reasonable.