Treaty of Lhasa (1904)

Younghusband dictated terms to the Tibetan officials which provided that—

● Tibet would pay an indemnity of Rs 75 lakh at the rate of one lakh rupees per annum;

● as a security for payment, the Indian Government would occupy the Chumbi Valley (territory between Bhutan and Sikkim) for 75 years;

● Tibet would respect the frontier of Sikkim;

● Trade marts would be opened at Yatung, Gyantse, Gartok; and

● Tibet would not grant any concession for railways, roads, telegraph, etc., to any foreign state, but give Great Britain some control over foreign affairs of Tibet.

Later, on the insistence of the Secretary of State and true to the pledge given to Russia, the treaty was revised reducing the indemnity from Rs 75 lakh to Rs 25 lakh and providing for evacuation of Chumbi valley after three years (the valley was actually evacuated only in January 1908).

Significance Only China gained in the end out of the whole affair because the Anglo-Russian convention of 1907

provided that the two great powers would not negotiate with Tibet, except through the mediation of the Chinese government. However, Curzon’s policy counteracted all Russian schemes in Tibet.