Jean Law de Lauriston, then Governor General set to rebuild the town on the old foundations and after five months 200 European and 2000 Tamil houses had been erected.
A document dated 15 May 1765 showed that the villages of Yanam and Kapulapalem, with certain other lands, had been ceded by John White Hill and George Dolben.
They had negotiated a deal (for taking over the villages) with Jean-Jacques Panon, the French Commissioner, who was Jean Law de Lauriston's deputy when he was Governor General of Pondicherry.
It is possible to have a commerce here worth more than a million livres per year under circumstances more favorable than those in which we are placed now, but always by giving advances much earlier, which we have never been in a position to do.
Although the English gained an effective control over the Circars, Yanam enabled the French to enter into secret relations with the local chieftains.