The diplomatic relations, again, of India must of necessity remain Imperial, and their management vested solely in the Viceroy. Indian diplomacy, as at present managed, is a complicated and costly thing; but in the India of the future we may hope this will be much simplified. Two cardinal points of policy might with advantage be observed: the first, to keep wholly apart from foreign intrigues and foreign wars; the second, to keep rigid faith with the still independent native princes within the border. Of foreign wars India has long had enough, and more than enough. The Chinese, the Persian, the Afghan, the Abyssinian, the Egyptian, and now the Soudanese, all these India has been forced to take part in, solely against her interest and her will. Apart from their money loss, there is in these wars a loss of dignity, which the Indian people are beginning to resent. Those who have been educated in the humane literature of Europe find it humiliating that they, a conquered people, should be used as the instrument for conquering others. What quarrel had India with the unfortunate Egyptians? What quarrel has she with the unfortunate Arabs? The educated Indians resent it bitterly, too, that India is made to pay the cost. But these things need no comment. They are but a part of that absolute selfishness which has been the principle of all our past relations with India, and in the new birth of India these too must be changed. The diplomatic relations with the native States have been a tissue of fraud and aggression. In the policy of the future, aggression must be abandoned. There is but one true policy towards the native States; and that is, by giving them the spectacle of a British India more happy than their own to invite their inhabitants to share its advantages. Who can doubt that were India self-governed, prosperous, and happy, the old native principalities would one by one spontaneously be merged in it.
With regard to the Debt, much as we may regret that it was ever incurred, it must remain, I fear, in our new India a charge on the Imperial Government. Its annual interest, like the cost of war and diplomacy, should be apportioned as a fixed charge to each province in proportion to that province’s wealth, except in so far as it relates to the guarantees of railways, which might be made a charge on the provinces served by them. It should, however, be a cardinal point of policy that no further debt should be incurred and no further guarantees given for Imperial works. The provinces henceforth should be charged with all works of communication, irrigation, and improvement, the utility of which they will best appreciate.