Prompt action was taken by Ibrahim Khan, the new Nabob, who had succeeded to the government of Bengal. He at once released the two English agents from their confinement and caused a message to be conveyed to Charnock informing him of the desire of the government to hve in amity with the Company. The change in the Mogul attitude was so startling as to arouse a not unnatural suspicion at Madras that it veiled some deep-laid scheme of treachery. It was decided, however, after mature consideration, to take advantage of the invitation to return to Bengal. The end of August found Charnock and his associates once more installed at Calcutta, endeavouring to pick up the broken threads of a sadly disorganized trade.
Meanwhile, the authorities at home had made many important changes in the arrangements for the control of their Indian interests. In 1687 the seat of the Western Presidency was transferred from Surat to Bombay, this following upon a measure carried through six years' previously separating Bengal from Madras. It was also in this period that Sir John Child was appointed "Governor-General," with full powers in India to make peace or war. But the most significant move of all was that which was undertaken by the Company in 1689, when they issued a formal declaration in favour of territorial sovereignty. This truly momentous resolution affirmed that "the increase of our revenue is the subject of our care as much as our trade." "'Tis that," proceeded the document, "must maintain our force when twenty accidents may interrupt our trade; 'tis that must make us a nation in India. Without that we are but a great number of interlopers, united by His Majesty's royal charter, fit only to trade where
