Standstill Agreement was signed on 29th November 1947 by the Laik Ali ministry, through the mediation of Lord Mountbatten, with the Dominion of India. Negotiations between the Indian Union and Hyderabad occupied many months both before and after 15th August 1947 when the British granted independence to India; they continued until the sign of Standstill Agreement. After that date attempts were made to reach a permanent agreement, but on 17th September 1948, the Indian Union annexed Hyderabad. The Standstill agreement was made between the Nizam of Hyderabad and Berar and Dominion of India. The aim of the agreement was to make a mutual understanding in work and maintain a close relationship in the both parties.

The basis of Standstill Agreement was the same as that of the last Standstill agreement which has been hammered out by the joint efforts of His Excellency the Governor-General and Sir Walter Monckton with the support of Pandit Jawaharlal Nehru and Mr. V. P. Menon. In signing this agreement, the Nizam`s government had hoped that it would end the state of uncertainty in their relations with the Dominion of India. And since that agreement was to endure for a year, both governments would be able to concentrate more fully on the problems of administration, rather than be constantly preoccupied with the question of the constitutional relationship between them.

The draft Standstill Agreement drawn up between 10th and 15th October owed something to the `Heads of Agreement` document. It began with a statement that both parties would work together in close association to the stability of India as a whole, but had not yet reached a final agreement as to the nature of such association: existing agreements and administrative arrangements in matters of common concern should continue: the parties had reached a standstill agreement in which provision was made in respect of external affairs, defense and communications generally.

The following arrangements were made for external affairs:

•The Nizam will maintain his Agent-General in the United Kingdom and will, if and when he so desires, appoint representatives in any Dominion of the British Commonwealth:


•The Nizam will, if and when he so desires, appoint trade representatives in any country:


•The Nizam will not during the currency of this agreement exercise his right to appoint representatives other than as aforesaid.

In the statements quoted above the Nizam was presumably avoiding the kind of claim which had been objected to in the draft `Heads of Agreement`.

In the matter of defense the agreement went into great detail about size and recruitment and training of Hyderabad troops and about sources of equipment. The statement likely to provoke discussion was that, the State was to get arms and equipment from the Dominion and only if the Dominion did not fulfill the State`s requirements within a reasonable time, would Hyderabad obtain them elsewhere. The rest of the material provisions were made on the basis of the standstill agreement the other States had executed and were not likely to be contentious. There was provision against the creation or loss of rights; and the agreement was made for one year with provision for extension.

The collateral letter provided for the neutrality of Hyderabad in the event of war between Pakistan and India, and for the Nizam to reconsider his position if India seceded from the British Commonwealth. The two signatories also undertook not to permit or encourage subversive activities against one another.

The Dominion of India`s absolute refusal to accept the first draft Standstill Agreement shows the Dominion beginning to exert its dominance over Hyderabad whose negotiators, however angry they felt, were powerless to force consideration of the document, and had to wait to see what India`s next move would be. In making that move, India showed her increasing mastery of the situation because the proposal put forward is a harsh though subtle reminder of India`s original demand that there should be `no standstill agreement before accession`, a condition that most of the states other than Hyderabad had accepted.

The Governor-General made the first move to start new negotiations. He suggested that a standstill agreement should be made much nearer the model used for other states. The Hyderabad delegation agreed to this only if they were assured by the Governor-General and Mr. Menon that the draft which would be shown to the Nizam would be acceptable to the cabinet. After a period of concentrated negotiation a draft agreement was drawn up. It was shorter and simpler than the first and consequently more had to go into the collateral letter. The draft began with the usual preamble which was followed by six articles.

The collateral letter from the Nizam to the Governor-General emphasised in its provisions the temporary nature of the agreement, but shows in many of them the dominance of Indian thinking and demands. The common concern of the Standstill agreement are mentioned by the Nizam who stressed repeatedly his continuing determination not to accede; a declaration that the agreement provided the oppor¬tunity, if good will grew on both sides, for a more satisfactory agreement at the end of a year; and assertion that in making the agreement he was not permanently prejudicing his rights as an independent sovereign, though he was suspending the exercise of some of them. He mentions the need for adjustment; problems with troops; the right to obtain supplies for himself if the Dominion could not supply them. He agreed to co-ordinate trade representatives` work with diplomatic and commercial representatives of the Dominion of India in the same countries. This was a condition of the Nizam having the right to appoint trade representatives.

Moreover the Nizam requested confirmation that no paramountcy functions remained to be exercised; that Indian troops would be moved from Hyderabad; that arms and equipment and certain vehicles should be made available to the army; the Residency returned for Hyderabad`s use; his rights such as that over currency confirmed; the passport issue organised; subversive movements and propaganda in the other`s territories should be discouraged by each signatory; certain jurisdiction to be restored to Hyderabad. The Governor-General`s letter expressed repeatedly the hope that the Nizam would accede, if possible before the Standstill Agreement expired.

Sir Walter Monckton considered that the second draft standstill agreement and collateral letter from the Nizam were obviously less satisfactory to the State than the first drafts had been. Between 22nd October when the draft Standstill Agreement was taken to the Nizam and 31st October when Sir Sultan Ahmed took a letter from the Nizam to the Governor-General of India, events occurred in Hyderabad that could be said to have shaped inexorably the future of the state.

The stand taken by the Dominion of India made the third phase of negotiations for a Standstill Agreement by no means easy for the members of the new delegation; and they arrived in Delhi on 31st October to find that Sir Sultan Ahmed had already had interviews with the Governor-General and Sirdar Patel and had told them, in detail, of the recent events in Hyderabad. Moin Nawaz Jung felt that this had jeopardised any chances the delegation might have had.

Later a remark of the Governor-General`s in a letter to Sir Walter Monckton reveals that the new Hyderabad delegation had been given a less than compassionate reception. The Governor-General had expected the original delegation to return from Hyderabad with the Nizam`s signature on the negotiated Standstill Agreement. He gave a clear, unequivocal statement to the new negotiating committee that he was not prepared to accept a reversal of policy. No changes in the draft Standstill Agreement prepared by the previous negotiating committee and representatives of the Dominion government would be permitted, though minor changes in the collateral letter might be considered. These changes should be confined to the two that were acceptable to the State`s ministry.

A statement was made by the Governor-General at a second meeting with the Hyderabad delegation. He emphasised that the Government of India stood by the Standstill Agreement in the form in which it had been agreed by the previous delegation. If the Nizam was not prepared to carry out his declared intention of accepting this, the responsibility of breaking off negotiations, and all the misery that would follow, would be his. There had been very little real negotiations earlier at this meeting. The Governor-General had asked for an explanation of the Nizam`s view, and in reply Moin Nawaz Jung had outlined the matters that the Nizam considered fundamental to the future of Hyderabad: the Cabinet Mission`s statement of 18th May 1946; the lapse of paramountcy on 15th August, it had not passed to either Dominion; and the statement intimidation should not be used to influence the decision of any State; and rulers should be given time to consider their actions.

In the draft reply of the Governor-General to the Nizam, a statement that India would hand over posts, telegraph and telephones to Hyderabad was not accepted.

There is flatness about the speech marking the end of the search for an Agreement between India and Hyderabad - the flatness of exhaustion. Because the Agreement was imposed rather than agreed, there is little of the feeling of satisfaction in a job well done. Furthermore, the Agreement which should have been a new beginning for both countries, a source of energy and new hope and ideas, marked the end of a dynasty and a State.

Whereas it is the aim and policy of the Dominion of India and the Nizam of Hyderabad and Berar to work together in close association and amity for the mutual benefit of both, but a final agreement as to the form and nature of the relationship between them has not yet been reached.

It is hereby agreed as follows:-
Article1 of the agreement contains that until new agreements in this behalf are made, all agreements and administrative arrangements as to matters of common concern, including External Affairs, Defence and Communications, which were existing between the Crown and the Nizam immediately before the 15th August 1947 shall in so far as may be appropriate, continue as between the Dominion of India and the Nizam.

Article 2 of the agreement incorporates that the Government and the Nizam agree for the better execution of the purposes of this Agreement to appoint Agents in Hyderabad and Delhi respectively and to give every facility to them for the discharge of their functions.

Article 3 of the agreement comprises of the fact that nothing herein contained shall include or introduce paramountcy relationship.

In Article 4 of the agreement, it was mentioned that any dispute arising out of this Agreement or out of agreements or arrangements hereby continued shall be referred to the arbitration of two arbitrators, one appointed by each of the partners, and an umpire appointed by those arbitrators.

This agreement was signed by the Nizam of Hyderbad and the Governor General of India after the confirmation of these agreements.