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whenever there was war in Europe, but in Bengal the strength of the Government, the terror of the Marathas, and the general weakness of the Europeans had contrived to enforce a neutrality. Still there was nothing to guarantee its continuance if the fear of the native Government and of the Marathas were once removed, and if any one of the three nations happened to find itself much stronger than the others. The fear of the Marathas had nearly disappeared, but that of the Government still remained. However, it was not till more than sixty years after the foundation of Calcutta that there appeared any possibility of a breach of peace amongst the Europeans in Bengal. During this time the three Factories, Calcutta always leading, increased rapidly in wealth and importance. To the Government they were already a cause of anxiety and an object of greed. Even during the life of Aliverdi Khan there were many of his counsellors who advised the reduction of the status of Europeans to that of the Armenians, i.e. mere traders at the mercy of local officials; but Aliverdi Khan, whether owing to the enfeeblement of his energies by age or to an intelligent recognition of the value of European commerce, would not allow any steps to be taken against the Europeans. Many stories are told of the debates