account of the Honourable Company’s defensive establishments with his Excellency the sovereign of Oude, no demand whatever shall be made upon his territory on account of expenses which the Honourable Company may incur by assembling forces to repel the attack, or menaced attack, of a foreign enemy; on account of the detachment attached to his person; on account of troops which may be occasionally furnished for suppressing rebellions or disorders in his territories; on account of any future charge of military stations; or on account of failures in the resources of the ceded districts, arising from unfavourable seasons, the calamities of war, or any other cause whatever.

The Honourable Company guarantees to him and to his heirs and successors, the possession of the territories which remain to him after the above cessions, together with the exercise of his and their authority within the said dominions; and the sovereign of Oude engages to establish, in his reserved dominions, such a system of administration, to be carried into effect by his own officers, as shall be conducive to the prosperity of his subjects, and calculated to secure the lives and property of the inhabitants; and to advise with, and act in conformity to the counsel of, the officers of the British Government.

In the time of Asuf-od Dowlah, who died on the 21st September, 1797, the military force of Oude amounted to eighty thousand men of all arms, and in the direct pay of Government.  Saadut Allee Khan, his brother and successor, on the conclusion of the above treaty, and the transfer of half his territory, reduced the number to thirty thousand.

Relying entirely upon the efficiency of British troops to defend him against external and internal enemies, and to suppress rebellion and disorder, he laboured assiduously to reduce his expenditure within the income arising from the reserved half of his dominions.  He resumed almost all the rent-free lands which had been granted with a lavish hand by his predecessor, and paid off and discharged all superfluous civil and military establishments, and, by his prudence and economy, he so reduced his expenditure within the income, that on his death on the 12th of July, 1814, he left fourteen millions sterling, or fourteen crores of rupees, in a treasury which he found empty when he entered upon the government in 1797.  In this sum were included the confiscations of the estates of some favourites of his predecessors, Asuf-od Dowlah and Wuzeer Allee, who had grown rich upon bribery and frauds of all kinds.  He never confiscated the estates of any good and faithful servants, who left lawful heirs to their property.