[3] While the territory of Nepal has been united and fragmented multiple times during the reign of various rulers throughout history, the Expansion of Kingdom, campaign of present-day Nepal was initiated by Prithivi Narayan Shah, who succeeded to the throne of Gorkha after the death of his father Nara Bhupal Shah in 1743 (1799 BS).

[4] Prithivi Narayan Shah and his successors[note 2] expanded the territory of the small state of Gorkha into a large kingdom.

The Treaty of Sagauli (1816) marked the end of the Anglo-Nepalese War (1814-1816) and allowed British India to cede parts of Nepal's land.

8) In order to secure and improve the relations of amity and peace hereby established between Nepal and Britain (East India Company), it is agreed that accredited Ministers from each shall reside at the court of the other.The sixth point of the treaty directly questions the degree of independence of Nepal.

After the Anglo-Nepalese War of 1814–1816, Nepal had generally maintained a peaceful stance with the East India Company.

In 1921, when the Prince of Wales, later Edward VIII, came to Kathmandu, Chandra Shumsher raised the question of formulating a new peace treaty between Nepal and Britain.

3) As the preservation of peace and friendly relations with the neighbouring States whose territories adjoin their common frontiers is to the mutual interests of both the High Contracting Parties, they hereby agree to inform each other of any rupture such friendly relations, and each to exert its good offices as far as may be possible to remove such friction and misunderstanding.

4) Each of the High Contracting Parties will use all such measure as it may deem practicable to prevent its territories being used for purpose inimical to the security of the other.