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Treaty of Pondicherry

  1. Both the companies promised that they would not interfere in the internal matters of the Indian rulers.

  2. Bussy’s stay at Hyderabad was accepted by both the sides.

  3. Both the companies promised to give up all the posts and privileges granted to them by the Indian rulers.

  4. Both the parties returned the conquered parts of each other and they were left with those portions alone which were with them before the beginning of the hostilities.

  5. It was also agreed between the companies that this treaty might be considered temporary until approved by their respective governments at home.

The third Anglo-French conflict proved to be decisive. The French factories in India were restored but they could no longer be fortified or even garrisoned with troops. They could serve only as centres of trade and now the French lived in India under British protection. The English ruled the Indian sea. Freed of all European rivals they could now set about the task of conquering India.