At the same time, they gave him notice that they should no
longer pay to him the tribute they had agreed upon, for the territory
called the Northern Circars. This would have led to war, but the
Bengal government promptly interfered, cancelled altogether the
demands made by the Madras government, and for the time patched up the
quarrel. The Nizam professed to be satisfied, but he saw that trouble
might arise when the English were more prepared to enforce their
demands. He therefore entered into negotiations with Hyder Ali and the
Mahrattis for an alliance, whose object was the entire expulsion of
the British from India.
"The Mahrattis from Poonah were to operate against Bombay; those in
Central India and the north were to make incursions into Bengal; the
Nizam was to invade the Northern Circars; and Hyder was to direct his
force against Madras. Hyder at once began to collect military stores,
and obtained large quantities from the French at Mahe, a town they
still retain, on the Malabar coast.
"The Madras government prepared to attack Mahe, when Hyder informed
them that the settlements of the Dutch, French, and English on the
Malabar coast, being situated within his territory, were equally
entitled to his protection; and that, if Mahe were attacked, he should
retaliate by an incursion into the province of Arcot.
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