As indemnification for the expenses of the Sikh Campaign, the British
Government had demanded from the Lahore State the sum of a crore and
a half of rupees, or 1,500,000L. The whole of this amount, however,
was not forthcoming, and it was agreed by Article 4 of the treaty
of 9th March, 1846, with the Maharajah Duleep Singh, that all the
hill-country between the rivers Indus and Beas, including the province
of Cashmere, should be ceded to the Honourable East India Company,
in perpetual sovereignty, as an equivalent for one million sterling.
Article 12 of the same treaty guaranteed to Gulab Singh, in
consequence of his services to the Lahore State, its recognition of his
independence in such territories as might afterwards be agreed upon;
and on the 16th March, 1846, the British Government, by special treaty,
made over for ever, in independent possession to Maharajah Gulab Singh
and the heirs male of his body, the greater part of the territories
previously mentioned in Article 4. In consideration of this transfer,
the Maharajah was to pay to the British Government, within the year,
the sum of seventy-five lakhs of rupees (750,000L.
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