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In 1845, the First Anglo-Sikh War broke out.
According to the Imperial Gazetteer of India, " Gulab Singh contrived to hold himself aloof till the battle of Sobraon ( 1846 ), when he appeared as a useful mediator and the trusted advisor of Sir Henry Lawrence.
Two treaties were concluded.
By the first the State of Lahore ( i. e. West Punjab ) handed over to the British, as equivalent for one crore indemnity, the hill countries between the rivers Beas and Indus ; by the second the British made over to Gulab Singh for 75 lakhs all the hilly or mountainous country situated to the east of the Indus and the west of the Ravi i. e. the Vale of Kashmir ).

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