On this day, the Treaty of Sinchula was signed between Bhutan and the British government in India.

Bhutan had to cede some of its territory to the British, including the Assam Dooars and Bengal Dooars. It also had to cede the 83 sqkm area of Dewangiri in southeastern Bhutan to the British. In return, the British would pay Bhutan an annual subsidy of ₹50,000.

In 1910, the Treaty of Punakha was signed between Bhutan and the British again, as practically an amendment to the Sinchula Treaty. The British agreed to respect Bhutanese autonomy in its internal affairs and Bhutan permitted Britain to conduct its foreign affairs.