the British Government. As it was essential to the maintenance of the
alliance that the Nizam's Minister should be well disposed to the British,
long and stormy discussions took place with the Nizam regarding the
appointment of a successor.
At last Moneer-ool-Moolk was appointed,
but under an engagement to refrain from taking any active part in the
affairs of the State, leaving the management to Chundoo Lall, who was
entirely dependent on British influence for his elevation to power. The
Nizam himself, whose sanity was doubted, lived a secluded life, and took
no interest in the administration. Under Chundoo Lall the reform of the
military establishments was commenced and a regular army disciplined
by British officers was organized.

The Nizam's army proved of much service in the Pindaree and Mahratta wars in 1817, and after the overthrow of the Peishwa these services were recognized by the Treaty of 12th December 1822 (No. XIV.), whereby the Nizam received a considerable accession of territory, was released from all arrears of tribute which he owed to the Peishwa, and from all future demands of it, and some exchanges of territory were effected to secure a well-defined frontier. The Nizam was bound to protect the rights of the landholders in the districts made over to him; a stipulation which has led to constant and unpleasant discussions with his government. In 1847 a commission was appointed to enquire into all claims under this guarantee. The claims finally allowed amounted to Rupees 1,00,147.

Sekunder Jah died in 1829 and was succeeded by Naseer-ood-dowlah, with whom a Treaty (No. XV.) was concluded confirming all existing Treaties. During the latter years of Sekunder Jah's rule, the country had suffered much from the almost irresponsible administration of Chundoo Lall. The revenues of the State were farmed to contractors who were supreme in their several districts. As a consequence, the grossest oppression prevailed, and the disciplined force under British officers, which Chundoo Lall had organized, was repeatedly called out to repress local rebellion. The country was in the possession of robber bands and the roads were unsafe except for persons travelling with large armed escorts. For the restoration of order it became necessary to employ British officers in the different districts who settled the amount of revenue to be levied, and under their administration the

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moreover was deeply involved in debt both to merchants and to the British Government. The annual payments to the Nizam for the Northern Circars was bought up for a sum of Rupees 1,66,66,666, by which the Nizam's government was extricated from its difficulties.

When Naseer-ood-dowlah succeeded, he requested that the direct interference of the British officers in the administration might be discontinued. The Nizam's request was complied with. He was assured that, provided he maintained inviolate the settlements made by the British officers until the period for which they were made should expire, the British Government would withdraw from all interference, and the Nizam would be absolute both in the selection and removal of his Minister, and in all other matters of internal administration. The withdrawal of interference was immediately followed by the return of disorder and misrule. Every department of the government became disorganized, and the credit of the State was so bad that bankers refused to grant loans. Chundoo Lall therefore resigned the office of Minister on 6th September 1843.

For some months the Nizam endeavoured to transact business himself, but he at length, with the approval of the British Government, appointed as his Minister Suraj-ool-Moolk, son of the former Minister Moneer-ool-Moolk. In the meantime the pay of the contingent had fallen greatly into arrears, and advances had to be made from the British treasury. The Nizam however was distinctly informed in 1843, that in the event of further advances becoming necessary, a territorial security for the payment of the debt would be demanded. The contingent force owes its origin to the 12th Article of the Treaty of 1800, by which the Nizam agreed in time of war to furnish 6,000 infantry and 9,000 cavalry to co-operate with the British army. Although the Treaty gave the right only to an occasional use of the Nizam's troops, the practice was to require a certain portion to be maintained ready for service at all times whether in peace or war. Part of the Nizam's army was commanded by European officers. It had been in various ways reformed at the request of successive Residents, and particularly by Mr. Henry Russell in the years 1814 and 1816, and it was made subject to the Articles of War. Still the contingent was essentially a part of the Nizam's army. No

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efforts were made to pay off the debt on account of the contingent either HYDERby Suraj-ool-Moolk or by his successors in office, Amjad-ool-Moolk and Shums-ool-Omrah, who were appointed in 1848 and 1849 with the approval of the British Government. In 1849 a demand was made for the payment of the debt by 31st December 1850. No steps were taken for payment, and in 1851 a territorial cession was demanded to liquidate the debt, which now amounted to upwards of Rupees 78,00,000. A payment of Rupees 40,00,000 was at once made, and the appropriation of the revenues of certain districts was promised to meet the remainder. The demand for a territorial cession was therefore withdrawn. But no real improvement followed. The Resident was again obliged to make advances for the payment of the contingent, and in 1853 the debt had again risen to upwards of Rupees 45,00,000.

Some new arrangement was absolutely necessary. Therefore in 1853 a new Treaty (No. XVI.) was concluded with the Nizam, by which the British Government agreed to maintain an auxiliary force of not less than 5,000 infantry, 2,000 cavalry, and four field batteries of artillery; and, to provide for its payment and for certain pensions and the interest on the debt, the Nizam ceded in trust districts yielding a gross revenue of fifty lakhs of Rupees, it being agreed that accounts should be annually rendered to the Nizam, and that any surplus revenue which might accrue should be paid to him. By this Treaty the Nizam, while retaining the full use of the subsidiary force and contingent, was released from the obligation of furnishing a large force in time of war, and the contingent ceased to be part of the Nizam's army and became an auxiliary force kept up by the British Government for the Nizam's use.

Naseer-ood-dowlah died in 1857 and was succeeded by his eldest son Afzul-ood-Dowlah, the present Nizam. During the mutinies of 1857 the maintenance of order at Hyderabad was important for the success of the military operations in the Deccan and Central India. The hopes of the disaffected were excited by the succession of a new Chief, and on 17th July an attack was made on the Residency. It was repulsed. The efforts of the Resident to preserve order were ably seconded by the Nizam's intelligent Minister Salar Jung, nephew of Suraj-ool-Moolk, who was appointed with the approbation of the British Government on his uncle's death in 1853. Salar Jung, by his enlightened policy and the

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HYDER abolition of the system of farming the revenues, has done much for the improvement of the country and the suppression of the plundering Rohillas who have so long disturbed the peace.

The provisions of the Treaty of 1853, which required the submission of annual accounts of the Assigned Districts to the Nizam, were productive of much inconvenience and embarrassing discussions. Difficulties had also arisen regarding the levy of the 5 per cent. duty on goods under the commercial Treaty of 1802. To remove these difficulties. and at the same to reward the Nizam for his services in 1857, a new Treaty (No. XVII.) was concluded in December 1860, by which the debt of fifty lakhs due by the Nizam was cancelled; the territory of Shorapore which had been confiscated for the rebellion of the Rajah was ceded to the Nizam; and the districts of Dharaseo and the Raichore Doab were restored to him. On the other hand the Nizam ceded certain districts on the left bank of the Godavery, traffic on which river was to be free from all duties; and agreed that the remaining Assigned Districts in Berar, together with other districts making up a gross revenue of Rupees 32,00,000, should be held in trust by the British Government for the purposes specified in the Treaty of 1853; but that no demand for accounts of the receipts or expenditure of the Assigned Districts should be made. It was the object of the British Government to obtain the sovereignty of the Assigned Districts, so as to administer them through any agency it pleased; but to this the Nizam could not be prevailed on to consent. The Treaty of 1860 does not affect the duties levied on goods imported into or exported from the Nizam's territories. These remain as before at 5 per cent., except on salt, on which the Nizam is allowed to take a higher duty as an offset to the duty levied by the British Government on opium grown in Hyderabad. Two estates held by relatives of the late Rajah of Shorapore, and life pensions to the widows amounting to Rupees 26,800 a year, are guaranteed by the British Government.

Owing to a misunderstanding between the Nizam and his Minister, the Nizam resolved in 1861 to remove Salar Jung from office, notwithstanding the remonstrances of the Resident. But the British Government refused to give countenance to the dismissal of a Minister who had so admirably discharged the duties of his office, and reminded the Nizam that no ruler, whatever his power or capacity for governing, can afford to

dispense with an able and faithful Minister, and that the Nizam's proceedings would be viewed as anything rather than as a proof of wisdom and justice. Salar Jung was maintained in office.

The Nizam has been created a Knight of the Most Exalted Order of the Star of India. In 1861 he conferred (No. XVIII.) on the Resident authority to inquire into and punish offences committed by Europeans and others in the Hyderabad territory. The chief if not the only practical value of this Sunnud consists in the proof it affords that the Nizam distinctly consents to the trial of such offences by the British Government and waives all claim to have them tried in his own Courts. But the Sunnud of itself does not vest the Resident with power to try and sentence British subjects for offences committed in the Nizam's territories. The British Government alone can confer such power. The practice of the Resident therefore is to act on the Sunnud only to the limited extent of transmitting such offenders to a Court in British territory for trial.

The Nizam has received a guarantee (No. XIX.) that any succession to his State, which may be in accordance with Mahomedan law and the customs of his family, will be recognized.

The area of the Hyderabad territory is 95,337 square miles and the population 10,666,080. The only feudatory of the Nizam is the Rajah of Gudwal, who is independent in his internal administration so long as he pays an annual tribute of Rupees 1,15,000.

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No. I.

No. I.

TREATY with the NIZAM, 1759.

A copy of Requests made by COLONEL FORDE to NAWAB SALABUT JUNG, and his compliance thereto, in his own hand.

The whole of the Circar of Masulipatam, with eight districts, as well as the Circar of Nizampatam, and the districts of Condavir and Wacalmanuer, shall be given to the English Company as an enam (or free gift), and the Sunnuds granted to them in the same manner as was done to the French.