Meanwhile, the British at Bombay had come into contact with the Mahrattas at Poona. For years the East India Company had been anxious to hold two important positions close to Bombay harbour, namely, the little island of Salsette and the little peninsula of Bassein. But the Mahrattas had wrested Salsette and Bassein from the Portuguese, and would not part with them on any terms. A civil war, however, had broken out in the Mahratta country. A Peishwa had been murdered. An uncle ascended the throne, but was banished on suspicion of being the murderer. He applied for help to the British at Bombay, and offered to cede the coveted positions if the British at Bombay would restore him to the Mahratta capital. The Governor and Council at Bombay closed with the offer, and the war began. [Sidenote: Disastrous retreat.] After some successes, the British at Bombay met with disaster. Mahadaji Sindia appeared at Poona with a large army to act against the banished Peishwa. A British force advanced from Bombay towards Poona, but took alarm at the report of Sindia's army, and suddenly halted, and beat a retreat. During the return march, the British force was environed by the Mahrattas, and finally surrendered to Sindia under what is known as the "Convention of Wurgaum." [Sidenote: Success of Warren Hastings.] Warren Hastings condemned the war from the outset; as, however, the Company was committed to a war, he exerted himself, in the teeth of Francis, to maintain British prestige in India. He sent an expedition, under Colonel Goddard, from Bengal to the Mahratta country, and detached another force under Captain Popham to capture Sindia's fortress at Gwalior. The success of these exploits electrified half India. The war was brought to a triumphant close, but all conquered territories, excepting Salsette and Bassein, were restored to the Mahrattas. Indeed, Warren Hastings was not a conqueror like Clive; he acquired no territory during his régime, excepting that of Benares, which was ceded to the Company by the Nawab Vizier of Oudh. [Sidenote: Three Asiatic powers in India.] §12. During the Mahratta war secret negotiations were carried on between the Indian powers for a confederation against the British. The two great powers of the Deccan--the Mahrattas on the west representing the Hindus, and the Nizam on the east representing the Mohammedans--had hated one another for the greater part of a century. A third power, that of a Mohammedan adventurer named Hyder Ali, was becoming formidable further south on the western tableland of the peninsula. Hyder Ali is said to have once served as a sepoy in the French army. Later on, he entered the service of the Hindu Raja of Mysore, and eventually ousted the Raja, usurped the sovereign authority, and conquered the countries round about. [Sidenote: Hyder Ali of Mysore.]