The relations, which the British government endeavoured to establish with the Princes of India, were different in different circumstances. Those with whom their connection was the most intimate, the Nabob of Carnatic, the Rajah of Tanjore, the Nabob of Oude, formed one class. Another was formed by those who stood in the circumstances of the Nizam, the Peshwa, and other Mahratta powers.

From the Princes of the first class, it had lately been the object of the British government to take away not only the military, but likewise the civil power, in the countries to which their titles respectively extended; and, leaving them the name of sovereign, to make them simply pensioners of state. With the rest, this object had been completely attained: With the Nabob of Oude, it was found expedient to make something of a compromise. A sort of delegated administration, which, however, he bound himself to carry on according to the pleasure of the delegator, was left to him in civil affairs, in a portion, not much more than a third, of his former dominions.

To this point the relations of the British government had advanced by degrees. At first they were neither very strong, nor very definite. The English, for their own security, found it necessary to aid the Princes in defending themselves; and the Princes agreed to re-imburse the English for the expenses which they incurred.