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Rh judgment, had returned to India in 1765, vested with plenary authority to reform the internal administration and to make peace abroad. He found the springs of government clogged by indiscipline and corruption; he suppressed resolutely the most glaring abuses; he reconstructed the administration with remarkable ability; and by two cardinal acts of public policy he settled the English dominion on a sure foundation within their territory and regulated their foreign relations.

The first of these acts was his acceptance for the Company of the Diwani, which was readily granted by the emperor on the terms of payment to himself of twenty-six lakhs of rupees, equivalent to some £260,000, annually from the Bengal revenues, and the assignment to him of two districts beyond the Ganges. The Company, having thus acquired possession of the whole revenue of the provinces, were at once transformed from irresponsible chiefs of an armed trading association into responsible administrators, with a direct interest in abolishing the peculations, scandalous frauds, and embezzlements that were rife in the country. The measure also put an end to the incessant disputes between the nominal government of the titular Nawab of Bengal and the actual authority of the Company. "The time now approaches," wrote Clive, "when we may be able to determine whether our remaining as merchants, subjected to the jurisdiction, encroachments, and insults of the country government, or the supporting your privileges and possessions by the sword, are likely to prove more beneficial to the