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Evolution and Perfection
It was probably Dupleix, who first gave on hire (so to say) European troops to Indian rulers to fight their wars. Since then, almost all the governor-generals from Clive onwards applied the system to various Indian states and brought it to near perfection.
The first Indian state to fall into this protection trap (which anticipated the subsidiary alliance system) was Awadh which in 1765 signed a treaty under which the Company pledged to defend the frontiers of Awadh on the condition of the Nawab defraying the expenses of such defence. It was in 1787 that the Company first insisted that the subsidiary state should not have foreign relations. This was included in the treaty with the Nawab of Carnatic which Cornwallis signed in February 1787. It was Wellesley’s genius to make it a general rule to negotiate for the surrender of territory in full sovereignty for the maintenance of the subsidiary force.