The signatory for Nepal was Raj Guru Gajraj Mishra aided by Chandra Sekher Upadhayaya,the signatory for the Company was Lieutenant Colonel Paris Bradshaw. The treaty called for territorial concessions in which parts of Nepal would be given to British India, the establishment of a British representative in Kathmandu, and allowed Britain to recruit Gurkhas for military service. Nepal also lost the right to deploy any American or European employee in its service (earlier several French commanders had been deployed to train the Nepali army).Under the treaty, about one-third of Nepalese-controlled territory was lost including all the territories that the King of Nepal had won in wars in the last 25 years or so such as Sikkim in the east, Kumaon Kingdom and Garhwal Kingdom (also known as Gadhwal) in the west and much of the Terai in the south. Some of the Terai lands were restored to Nepal in 1816. More Terai lands were restored to Nepal in 1860 to thank Nepal for helping the British to suppress the Indian rebellion of 1857.The British representative in Kathmandu was the first Westerner allowed to live in the post-Malla Era Nepal. (It is to be noted that few Christian missionaries operating were deported by the Gorkhas after conquering Nepal during the mid 18th century). The first representative was Edward Gardner, who was installed at a compound north of Kathmandu. That site is now called Lazimpat and is home to the Indian and British embassies. The Sugauli Treaty was superseded in December 1923 by a "treaty of perpetual peace and friendship," which upgraded the British resident to an envoy. A separate treaty was signed with India (independent by now) in 1950 which established relations between the two countries.The British Government is willing likewise to restore the Terai lying between the Rivers Gandak and Rapti, that is to say, from the River Gandak to the western limits of the Jilla of Gorakhpur, together with Butwal and Sheeraj, such as appertained to Nepal previous to the disagreements, complete, with the exception of the disputed places in the Terai, and such quantity of ground as may be considered mutually to be requisite for the new boundary.As it is impossible to establish desirable limits between the two States without survey, it will be expedient that Commissioners be appointed on both sides for the purpose of arranging in concert a well defined boundary on the basis of the preceding terms, and of establishing a straight line of frontier, with a view to the distinct separation of the respective territories of the British Government to the south and of Nepal to the north; and in case any indentations occur to destroy the even tenor of the line, the Commissioners should effect an exchange of lands so interfering on principles of clear reciprocity.And should it occur that the proprietors of lands situated on the mutual frontier, as it may be rectified, whether holding of the British Government of the Raja of Nepal, should be placed in the condition of subjects to both Governments, with a view to prevent continual dispute and discussion between the two Governments, the respective Commissioners should effect in mutual concurrence and co-operation the exchange of such lands, so as to render them subject to one dominion alone. Whensoever the Terai should be restored, the Raja of Nepal will cease to require the sum of two lakhs of Rupees per annum, which the British Government agreed to advance for the maintenance of certain Bhardars of his Government.
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