As it happened, Governor Renault at Chandernagore had received the news of war with England on the very day (the 6th of January) that the officials at Fort William had their information. They, too, for their own particular reasons, had decided for the time being to say nothing about it. The French at Chandernagore were, as a fact, in a very different position from what they were thought to be at Calcutta. The garrison actually numbered only a hundred and forty-six European soldiers, many of whom were invalids, and some three hundred Sepoys. In addition there were between three and four hundred officials, traders, and sailors belonging to ships from France in the river. What was to be done was a very difficult question. There seemed to be two courses open. One was to join with the Nawab in his campaign against Calcutta then—in January—just about to open. Suraj-u-daulah had himself already pressed them to side with him. He had heard rumours as to the relations between England and France. The other course for the French was to temporize, and try to form a private treaty of neutrality between Chandernagore and Calcutta. This course the French adopted, and they sent an emissary to Calcutta to make propositions for a treaty. The emissary arrived at Fort William in the third week of January, and found the Calcutta Council not indisposed to listen to the suggestion. A deputation was then sent to Calcutta and negotiations begun. It took some little time, however, to settle on terms; and then came the sudden collapse of the Nawab’s campaign and his treaty with the English of the 9th of February.
That altered the situation entirely. The authorities at Calcutta now saw matters in quite another light. With the Nawab out of the way, and with Clive and the pick of the Madras army at their disposal on the spot, why should they not take the opportunity of ridding themselves of their most formidable trade rivals once for all?
It was considered politic, however, not to break off the negotiations with the French for the moment. The Nawab’s sanction to the carrying on of hostile operations within his territories ought to be obtained. The negotiations with the French deputation were meanwhile protracted on various pretexts. Again the unexpected happened. Suraj-u-daulah’s reply was a peremptory refusal to permit operations of war in Bengal. The Calcutta Council on that again took up the question of a treaty with Chandernagore. It was duly drafted and made ready for signature, when Admiral Watson himself, as representing the British Government, intervened. The negotiations hitherto had been no concern of his. Now he was asked to sign the treaty. The Admiral declined to assent to any terms with the French. The French settlement at Chandernagore, he pointed out, was legally a dependency of Pondicherry, where any arrangement come to would have to be ratified.