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82 Nizám, for, although the Company were to enjoy the reversion of the district on Basálat Jang's death, the Nizám was during his lifetime the actual suzerain of the territory. Irritated by this contemptuous disregard of his rights, Nizám Alí was justified in stating to the English Resident who was despatched to his Court that, in acting as they had done, the Madras Government had set aside the treaty made with him. His indignation knew no bounds when he ascertained from the same envoy that they purposed also to ignore in future the payment of the tribute which, on the cession of the Sarkárs by the emperor, the British Government had weakly consented to pay to the Nizám.

Haidar on his part had still greater reason to complain of the manner in which he had been treated by the Madras authorities. In all his struggles with the Maráthás, he had been studiously denied that co-operation and support which our treaty made with him in 1769 had apparently assured to him, while all his endeavours to effect a friendly alliance with the English had been thwarted by the evil influence of the Arcot Nawáb, who, for his own aggrandizement, had kept open the breach between Haidar and the Madras Government. In 1767 the Arcot Nawáb had sent an agent to England with instructions to bring about a direct intercourse with the British Government, independently of the authorities at Madras – a proceeding which has in later times been pursued by other Indian potentates with evil results.