The Sugauli Treaty (also spelled Segowlee and Segqulee) was signed on December 2, 1815 and ratified by March 4, 1816, between the British East India Company and Nepal, which was a kingdom during that era. This ended the second British invasion of the Himalayan kingdom during the Anglo-Nepalese War (1814–1816). The signatory for Nepal was Raj Guru Gajaraj Mishra aided by Chandra Sekher Upadhyaya and the signatory for the Company was Lieutenant-Colonel Paris Bradshaw. The treaty called for territorial concessions in which parts of Nepal will 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 territory was lost, including Sikkim (whose Chogyals supported Britain in the Anglo-Nepalese War); territory to west of the Kali River like Kumaon (present Indian state of Uttarakhand), Garhwal (present Indian state of Uttarakhand); some territories to the west of the Sutlej River like Kangra (present day Himachal Pradesh); and much of the Terai Region. Some of the Terai Region was restored to Nepal in 1816 under a revision of the treaty and more territory was returned in 1865 to thank Nepal for helping 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 Gurkhas after conquering Nepal during 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 British and Indian 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 The Sugauli Treaty was superseded in December 1923 by a "treaty of perpetual peace and friendship," which upgraded the British resident to an envoy.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 restored fresh relations between the two as independent countries.
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Until the Sugauli Sandhi (treaty) was signed, the territory of Nepal also included Darjeeling, and Tista to the east, Nainital to the south-west and Kumaun, Garwal and Bashahar to the west. However, today these areas are a part of India.
After the Anglo-Nepal war, a treaty of peace and friendship was signed between the government of Nepal and the East India company. It is popularly known as "The Treaty of Sugauli, 1815". It was agreed upon on 2nd December 1815 by Gajraj Misra and Chandra Sekhar Upadhayay, on behalf of the government of Nepal, and Lt. Col P. Bradshaw, on behalf of the East India company. The signed copies of the treaty were exchanged on 4th March 1816 at Makawanpur by Chandra Sekhar Upadhayay and General Octorlony. The terms of the treaty were as follows:-
In fact, this treaty of Suguali was in favour of the East India Company and Nepal had to suffer a heavy loss of her territory. So, a subsequent agreement was made in December 1816 according to which Nepal got all the low lands (Terai) from Mechi, in the east, to Mahakali, in the west. Therefore, the indemnity of two lakhs of rupees ceased to continue. A land survey was also proposed to fix the boundary between the two States.
1. Article 9 of the treaty says that the treaty shall be approved by the King of Nepal, but records of the treaty being approved by King Girwana Yuddha Bikram Shah have not been conclusively traced.
2. The British had feared that Nepal might not implement the treaty signed on March 4, 1816 by Chandrashekhar Upadhyaya. Therefore, Governor General David Octerloni, on behalf of the British Government, ratified the treaty the same day and the counterpart treaty was handed over to Upadhyaya.
3. Some have argued that the treaty was signed between Nepal and the British and thus lacks the force to be implemented between Nepal and independent India.
As the treaty was not clear about the National delimitation, its effects have persisted even to the present time:
1. The treaty failed to mention clearly in so many sections where the borderline would actually pass through. There have been problems in demarcating the boundary line and in erecting border pillars at several places. Now the area of such disputed places has been estimated at around 60,000 hectares. In many of these areas, there are still claims, counter-claims, discussions, controversies and arguments from both sides.
2. The result is that even today there are accusations of encroachment and disputes at 54 places of the Nepal-India borderline. The prominent areas have been identified as Kalapani- Limpiyadhura, Susta, Mechi area, Tanakpur, Sandakpur, Pashupatinagar, Hile Thori etc.
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