an annual revenue of 100 million rupees and states like Babri at the lower end with a population of 27 people and annual revenue of 80 rupees. The principle was asserted in a letter by Lord Reading to the Nizam of Hyderabad in 1926, "The sovereignty of the British Crown is supreme in India and therefore no ruler of an Indian State can justifiably claim to negotiate with the British Government on an equal footing." This meant that the Indian states were Crown dependencies or protectorates of the British Indian government. They could not make war or have any direct dealings with foreign states. Neither did they enjoy full internal autonomy. The British government could and did interfere in their internal affairs if the imperial interests were involved or if it proved necessary in the interest of "so stated" good governance. In some cases, the British government also deposed the Indian princes. Bose and Jalal say that the system of Paramountcy was a system of limited sovereignty only in appearance. In reality, it was a system of recruitment of a reliable base of support for the Imperial State. The support of the Imperial State obviated the need for the rulers to seek legitimacy through patronage and dialogue with their populations. Through their direct as well as indirect rule through the princes, the colonial State turned the population of India into 'subjects' rather than citizens. The Government of India Act 1935 envisaged that India would be a federation of autonomous provinces balanced by Indian princely states. This plan never came to fruition. The political conditions were oppressive in several princely states giving rise to political movements. Under pressure from Mahatma Gandhi, the Indian National Congress resolved not to interfere directly but called on the princes to increase civil liberties and reduce their own privileges. With the impending independence of India in 1947, the Governor-General Lord Mountbatten announced that the British paramountcy over the Indian states would come to an end. The states were advised to 'accede' to one of the new Dominions, India and Pakistan. An Instrument of Accession was devised for this purpose. The Congress leaders agreed to the plan with the condition that Mountbatten ensure that the majority of the states within the Indian territory accede to India. Under pressure from the Governor-General, all the Indian states acceded to India save two, Junagadh and Hyderabad. The two states acceded