Peace, war, observance of neutrality, marching (making preparations for war), alliance, and making peace with one and waging
war with another are the six forms of state-policy. A wise king should observe that policy which enables him to build forts, construct roads and buildings, open new villages, and to exploit mines and timber. The king should not follow that policy which causes him to lose profit from his own works, without a corresponding loss on the part of the enemy. By adopting the six-fold policy, the king should attempt to pass from the state of decline to that of stagnation; and from that of stagnation to that of progress. A king desiring to expand his own power should also make use of the six-fold policy.
Kautilya say that it is
strength or power that brings about peace between any two kings. When the advantages to be derived from war and peace are equal, the king should prefer peace over war. War with another king of equal strength shall bring ruin to both. In war as in peace, when a king finds neither loss to his enemy or gain to himself, he should remain neutral. A king may withdraw from hostile actions for the sake of his own
interests. Owing to the peculiar condition of his works, circumstances and time; a weak king may submit to peace on the terms offered by a stronger king.
Kautilya says that disloyal or indifferent subjects will destroy even a strong king. On the other hand, if the subjects are loyal to their master, they will uphold his cause and fight against his enemies. It is in the loyalty of his subjects that the real strength of the king resides. Kautilya says that a king of righteous character does what he has promised to do, irrespective of good or bad results.
Therefore, no king should give cause for disaffection among his people:
* By insulting the good and commending the wicked;
* By causing unnecessary loss of life;
* By neglecting the observance of proper and righteous customs;
* By not punishing the guilty:
* By not protecting the people against thieves and by robbing them of their wealth;
* By hurting the representatives of the people;
* By neglecting works in hand;
* By not maintaining the security and property of his subjects,
If, however, the signs of disaffection appear, the king should immediately take remedial measures...
Kautilya says that whatever is injurious to the king's interests should be abandoned, while that which is injurious to the interests of the enemy may be accepted.