At the same time, the Portuguese, whose power and resources were fast
diminishing, recognized the difficulty of retaining the isolated fortress
of Chaul. They offered it first to the Dutch and then to the English, but
the dangerous gift was refused by both. Finally they made it over to the
Peishwa by agreement.[1]

While these things were going on, the _Antelope_, gallivat, fell a prey to
the Coolee rovers of Sultanpore. Through the treachery of the pilot it was
run ashore. The crew defended themselves gallantly, but in the course of
the action the ship blew up, and ten Europeans, two sepoys, and two
lascars were killed.

In view of the losses he had sustained, Sumbhajee Angria now tried to
patch up a peace with Bombay. In order to test his sincerity, he was
required, as a preliminary step, to restore the English prisoners he held.
Just then he scored a success against the Portuguese, from whom he
captured two fine grabs and a convoy; so the negotiation came to a
standstill. But his fortunes were declining, his people were leaving his
service, while Mannajee, protected by the Peishwa and the English, was
increasing in power; so he again addressed the Bombay Governor, in a
letter beginning 'For thirty years we have been at war.' But it was soon
discovered that his object was to have his hands free to attack Mannajee,
and his overtures came to nothing. In May, 1743, he captured the Bombay
ketch _Salamander_, off Colaba, but before it could be carried off it was
rescued by some of Mannajee's ships from Chaul, and restored to Bombay.
Very shortly afterwards, Sumbhajee died, and was succeeded by his
half-brother, Toolajee. The reputation of the English in Bombay was now so
good, that a quarrel between Mannajee and the Peishwa was referred to them
for arbitration.