In the beginning of 1754, the Dutch suffered a severe loss at Toolajee's hands. A vessel loaded with ammunition was taken, and two large ships were blown up after a stiff fight, in which Toolajee had two three-masted grabs sunk and a great number of men killed. Six months later, Toolajee sent an agent to Bombay to propose terms of accommodation. They were terms to which a conciliatory answer, at least, would have been returned in Conajee Angria's time. The Council's reply betrays a consciousness of increased strength. "Can you imagine that the English will ever submit to take passes of any Indian nation? This they cannot do. We grant passes, but would take none from anybody." Toolajee was told that if he was in earnest in desiring peace, he should return the vessels he had taken, and send men of figure and consequence to treat, instead of the obscure individual through whom his overtures had come. In spite of this peremptory reply, Toolajee continued to make half-hearted proposals for peace. The fact was that he was now at open war with the Peishwa, who had made himself master of the Concan, with the exception of the coastline. According to Orme, Toolajee had cut off the noses of the agents sent by the Peishwa to demand the tribute formerly paid to Satara. The Poonah Durbar were so incensed against him that they were determined on his destruction, though without the assistance of the English they had little expectation of success against his coast fortresses. The Bombay Council was ready enough to join in the undertaking, but was unwilling to take immediate action. This unwillingness was apparently due to their desire to see order first restored in Surat, where affairs had fallen into great disorder in the general break-up of Mogul rule. The Mahratta Court at Poona had been close observers of the long war waged in the Carnatic between the English and French. They had seen Madras taken, only to be regained by diplomacy, and after the English had been foiled at Pondicherry. They had witnessed the rise of French power under Dupleix; rulers deposed and others set up, in the Deccan and the Carnatic, by French arms; and then, when Mahomed Ali, the rightful ruler of the Carnatic, was at his last gasp, they had seen his cause espoused by the English, and one humiliation after another inflicted on French armies, till at last the French were forced to recognize Mahomed Ali's title, while a powerful English squadron and a King's regiment had been sent out to make good the claim. The good relations established between the Peishwa's government and Bombay by the treaty of 1739, had been strengthened since the arrival of Mr. Richard Bourchier, as Governor, in 1750; the fighting in the Carnatic had raised the military reputation of the English, while their support of Mahomed Ali, whom the Mahrattas styled 'their master,' had greatly increased the esteem in which they were held.