determined to give him the satisfaction of attempting to reduce the city of Velore. Accordingly the detachment returning to Arcot from the expedition against the Polygars was reinforced with two hundred Europeans, two eighteen pounders, and several companies of Sepoys: the whole now amounting to 500 men in battalion, with 1500 Sepoys, encamped the 30th of January within cannon shot to the south of Velore. The Phousdar having early intelligence of their approach, applied for assistance to Mr. de Leyrit, the governor of Pondicherry, who wrote to the presidency of Madrass, that he regarded their proceedings against Velore, as a breach of the truce, and should commence hostilities if the English troops were not immediately withdrawn; as a proof of which intention, he ordered 700 Europeans, with 2000 Sepoys, to take the field: this vigorous resolution probably proceeded from his knowing that the English squadron were preparing for the expedition against Angria, which would for some months delay their return to the coast of Coromandel. At the same time that major Kilpatrick was alarmed by the approach of such an enemy in his rear, he found the place he was come against, much too strong to be reduced by the force under his command: Mortizally likewise had his anxieties; for next to the dread of being vigorously attacked, nothing was so terrible to him as the necessity of admitting a body of French troops into his fort; although to amuse the English, he publickly declared that he should not hesitate to take this step if they commenced hostilities. Both sides therefore, having cogent reasons to avoid them, a negociation was opened, and Mahomed Issoof went into Velore to settle the terms. In the mean time, the Phousdar's agent at Madrass, finding the presidency disconcerted by the resolution which the French had taken, made proposals in behalf of his master; and the presidency deeming it impossible to subdue the place in the present conjuncture, determined to withdraw their troops and make peace with him, provided he would pay the company 100,000 rupees. In consequence of this resolution, a member of the council was deputed to Velore who on his arrival at the camp, found that the Phousdar had agreed to pay major Kilpatrick 400,000 rupees, if he would immediately retire with the army, and that he had already sent out some sealed bags of money, which, as he said, contained
