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116 the Sikhs and the British, the latter being victorious. By the terms of treaty concluded on March 9, 1846, the Sikhs agreed to cede the territory lying between the Satluj and the Bias and to receive a British garrison at their capital for eight years. Dalip Singh, Ranjit Sing's son, was recognized as Raja, but the administration of the country was virtually in the hands of Major Henry Lawrence, the British Resident at Lahore. According to the terms of this treaty, an indemnity of one and a half million pounds was to be paid to the British, or Kashmir ceded with half a million pounds. The Sikhs accepted the latter alternative. The British then handed over Kashmir for one million sterlings to Golab Singh, the Hindu Raja of Jammu. But the peace could not be maintained for a long time, and in 1848 the Second Sikh War broke out. The Sikhs were once more defeated and on March 12, 1849, Sher Singh and the remnant of the Sikh army laid down their arms. The whole of the Punjab together with the Sikh possessions beyond the Indus became part of the British Empire. Shah Mahmud (1801—1803).—Mahmud's accession to the throne was at first hailed by all