Which one of the following statements about Subsidiary Alliance devised by Lord Wellesley in the year 1798 is not correct?

The Subsidiary Alliance system, formalized by Lord Wellesley in 1798, was a strategic tool for British expansion that effectively stripped Indian states of their sovereignty. Under this system, the allying state was required to accept the permanent stationing of a British armed contingent within its territory [3]. Crucially, the British East India Company took over the responsibility for the state's protection against external enemies and internal rebellions [1]. Therefore, statement 1 is incorrect because the allied territories were not responsible for their own protection; they surrendered their right of self-defense to the British. The ally was also required to provide resources or territory for the maintenance of the British troops [3]. Furthermore, the ruler could not enter into any agreements or negotiations with other powers without the prior permission of the British Governor-General [1].

Sources

1. [1] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 5: Expansion and Consolidation of British Power in India > Subsidiary Alliance > p. 120
2. [3] Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 4: The British Conquest of India > Expansion under Lord Wellesley (1798-1805) > p. 76