Soon,
the
news
about
Muhammad
Hasan
Khan's
power
over
Araq,
Azerbaijan
and
Mazandaran
spread.
Panah
Khan
was
anxious:
after
the
death
of
Nadir
Shah
hehad
somehow
established
friendly
relations
with
the
latter's
nephew
Ali
Shahand
Amir
Aslan
Khan
Sardar.
Therefore
he
[Muhammad
Hasan
khan]
might
open
hostilities.
Hewas
not
safe
also
from
the
aggressions
of
his
old
enemies-
neighboring
khans,
and
theymight
instigate
him
to
invade
Karabagh.
In
consequence,
his
people
and
tribes
would
sufferfrom
ravages
caused
by
enemy
troops.
Therefore,
the
way
out
of
the
situation
was
to
befound
before
the
accident
happened.
He
consulted
with
his
officials
and
experiencedcounselors
bout
finding
a
firm
and
pleasant
place
for
building
a
fortress,
where
theycould
find
a
safe
refuge
in
case
of
troubles.
After
some
searches,
by
MelikShahnazar's
indication
and
advice
they
found
the
place
of
Shushi,
a
big
town
now.
Panah
Khan
went
there,
walked
about
and
examined
its
environs
with
his
own
eyes
andpraised
it
in
every
aspect.
Since
the
area
lacked
rivers,
he
ordered
to
dig
wells
atseveral
spots
and
a
lot
of
water
sprang
out.
In
the
Asad
of
1765/1171
(85a)
of
Christianand
Moslem
chronology
he
founded
the
town
of
Shushi.
From
western,
eastern
andnorthwestern
sides
it
is
surrounded
with
high
rocks:
none
could
overcome
them
neither
onfoot
nor
on
horseback.
He
decided
to
construct
a
wall
with
the
help
of
villageinhabitants,
meliks
of
districts
and
tribe
chiefs
on
the
southern
and
the
southeasternsides.
It
was
built
with
stone
and
brick,
walls
having
the
height
of
five
zars
anda
thickness
of
two
and
a
half
zars.
No
weapon
could
damage
that.
Four
gates
werealso
constructed:
the
two
of
them
from
western
and
northern
sides,
which
were
called
thegates
of
Shushikend
and
Mokhtar,
the
other
two-
on
the
western
and
north-western,
one
wascalled
he
gate
of
Erevan,
the
other
-
of
Ganje
and
Jraberd.
The
fourth
gate
is
destroyednow:
a
wall
is
built
instead.
After
the
completing
the
construction
of
Shushi
Panah
Khanhad
the
inhabitants
of
Tarnakiut
fortress
(Shahbulagh),
the
population
of
some
villages
ofKarabagh
moved
and
settled
down
there.
There
he
established
a
mint
and
minted
the
coinnamed
Panahabad,
its
weight
being
over
one
misqal.
"Panahabad"was
stamped
(85b)
on
one
side
of
the
coin
and
the
pious
Mohammedan
formula
[...
],
on
the
opposite
side.
Six
of
them
were
equal
to
aunit
of
Russian
money
and
eight
-
to
one
toman
of
Karabagh.
A
year
after
the
construction
of
Shushi,
the
word
about
the
unexpectedapproach
of
Muhammad
Hasan
Khan
Qajar
with
a
huge
army
spread
very
fast.
He
conscriptedpeople
from
Araq,
Azerbaijan,
and
other
regions
[of
Iran]
to
attack
Shushi.
(86a)Therefore
Panah
Khan
summoned
the
brave
young
men
and
experienced
warriors
from
his
tribesand
villages
of
Takhte
Qapu
to
the
fortress
of
Shushi,
made
preparations
for
its
defenseand
the
repulse
[of
the
enemy].
Muhammad
Hasan
Khan
arrived
with
great
army
and
stopped
atKhatun
Arkh,
near
Shushi.
He
did
not
dare
to
go
nearer.
He
tried
long
to
negotiate
withPanah
Khan
through
deceitful
tricks,
but
failed.
The
Karabagh
people
and
cavalrymen
madeseveral
attacks
upon
his
armed
forces,
robbed
them
and
blocked
the
ways
of
its
warsupplies.
Meanwhile,
Muhammad
Hasan
Khan
was
informed
about
the
rise
and
victories
ofKerim
Khan,
his
march
to
Araq
and,
therefore,
he
moved
back
to
Araq.
The
two
big
cannons,
brought
by
him
from
Tehran
and
called
hesar-tupi,
were
left
there
and
then,
after
hisdeparture,
were
taken
to
the
fortress.
There
they
remained
until
1826/1242
and
were
usedby
its
Russian
garrison
against
Qizilbashs
during
the
siege
of
Shushi.
As
the
population
of
Shushi
increased
rapidly,
the
old
walls
of
thefortress,
built
at
the
times
of
Panah
Khan,
were
destroyed
in
1789/1204,
during
the
ruleof
Ibrahim
Khan
and
strengthening
influence
of
the
Russian
State.
New,
more
stable
wallswere
built
within
a
verst
distance,
according
to
the
project
of
skillfularchitects.
Its
inhabitants
were
mostly
Armenians.
A
part
of
them
Panah
Khan
had
broughtfrom
Meghri,
Agulis,
Ordubad,
Kazanchi,
the
district
of
Jraberd,
as
well
as
from
variousvillages
[of
Karabagh]
and
settled
there.
A
part
also
[of
its
inhabitants]
Ibrahim
Khangathered
there
during
his
rule.
Although
at
the
times
of
Panah
Khan,
when
Shushi
was
just
founded,
itsMoslem
population
prevailed:
they
were
brought
from
Tabriz,
Nakhichevan
and
Karabaghtribes.
However
owing
to
the
impregnability
of
Shushi,
the
number
of
Armenians
graduallyincreased.
So
that
now,
(1855/1271)
at
the
age
of
the
Russian
great
State's
rule,
thetwo
thirds
[of
its
population]
are
Armenians
and
the
one
thirds
-
Moslem
Shiites.
At
firstthere
were
few
buildings.
And
now
there
are
numerous,
the
number
of
which
increases
day
byday,
and
among
which
the
nice
ones
are
more
and
more.
The
names
of
the
Armenian
blocks
of
the
city
of
Shushi
are:
Meghrilu,
Kazanchilu,
Agulislu,
Cheleberd
and
Daredabaqan.
The
lower
and
western
blocks
are
theMoslem
blocks
with
the
names:
Kurtlar,
Julfa,
Quilugh,
Chokhur,
Haji-Yuseflu,
Mardinlu,
Jhudlar,
Sa'atlar,
Mamaii,
Khoja-Marjanlu,
were
located
in
lower
and
western
areas.