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1673] pagodas, to be allowed in custom duties, etc. (O. C. 3758; F. R. Surat, Vol. 106, Bombay to Surat, 29 September, 1673.) Surat agreed with Bombay (10 July, 1673) "to accept so small a sum as eight to ten thousand pagodas, which is not the quarter part the damage the nation sustained in Rajapur;" of this amount 8,000 pagodas were to be paid in money or goods, and the balance in the form of exemption from all custom duties at the port of Rajapur for five or at least three years. (F. R. Surat, Vol. 3.) The evasions of Shivaji thoroughly disgusted the English merchants. As the Surat Council records (F. R. Surat, Vol. 3, 19 July, 1673), "Seeing there is no probability of security from such a heathen, who, while we are in treaty with him for satisfaction for our losses at Rajapur, gives orders for the robbing our factory at Hubli, we can think of no better way to recover the Hon'ble Company and nation's right than by taking what vessels belong to his ports." A little earlier, on 24th May, they had concluded, "It is absolutely necessary to break with him, but not at this time when we have war with the Dutch." But by 1st October an amicable settlement was in sight, "Shivaji holds a fair understanding with us and we with him, the old difference of Rajapur being in a manner concluded upon honourable terms, to our advantage and reputation." (O. C. 3779.) The hopes of the English ran high ; on 23rd October Bombay writes to Surat (O. C. 3870), "We are near a