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The XYZ Affair was a diplomatic incident between French and United States diplomats that resulted in a limited, undeclared war known as the Quasi-War. U.S. and French negotiators restored peace with the Convention of 1800, also known as the Treaty of Mortefontaine. In the late 1700s, the final French Revolutionary government, the Directory, was experiencing problems financing its European wars. Many leaders were also angry that the United States had concluded the Jay Treaty with Great Britain in 1794. Consequently, in 1796 French leaders decided to issue an order allowing for the seizure of American merchant ships, carefully timed to catch as many as possible by surprise.
====US diplomats respond to French Piracy====
President John Adams dispatched three U.S. envoys to restore harmony between the United States and France—Elbridge Gerry, Charles Cotesworth Pinckney, and John Marshall. These commissioners, like others of the Adams administration, viewed France as a center of decadence and intrigue and the rampant intrigue and factions of the Directory made it difficult for the Americans to accomplish their mission. Upon arriving in France, Gerry, Pinckney and Marshall found that they were unable to formally meet with the Foreign Minister, the Marquis de Talleyrand. The U.S. envoys were instead approached by several intermediaries, Nicholas Hubbard (later W,) Jean Hottinguer (X), Pierre Bellamy (Y), and Lucien Hauteval (Z.) Also involved with these negotiations was the playwright Pierre Beaumarchais, who had been involved in funneling French aid to the United States during the American Revolution. These French intermediaries stated that Talleyrand would be willing to meet with the Americans and come to an agreement if several conditions were to be satisfied. The French demanded that the United States provide France with a low-interest loan, assume and pay American merchant claims against the French, and lastly pay a substantial bribe to Talleyrand. The U.S. envoys were shocked, and also skeptical that any concessions would bring about substantial changes in French policy.
These French intermediaries stated that Talleyrand would be willing to meet with the Americans and come to an agreement if several conditions were to be satisfied. The French demanded that the United States provide France with a low-interest loan, assume and pay American merchant claims against the French, and lastly pay a substantial bribe to Talleyrand. The U.S. envoys were shocked, and also skeptical that any concessions would bring about substantial changes in French policy. Talleyrand’s strategy was mainly one of delay. He intended to end attacks on U.S. merchant shipping, but wanted first to increase his personal wealth, strengthen his political position within the Directory government, and ensure that he would deal only with Elbridge Gerry, the American commissioner who seemed most friendly to French interests. Talleyrand’s intermediaries were also interested in preserving peace with the United States as many of them had investments in U.S. businesses. However, as French military victories in Europe increased French power, the French changed the loan terms and threatened an invasion of the United States if the U.S. envoys did not capitulate. When the U.S. envoys proved unwilling to accede to French demands, Talleyrand eventually met with them formally, and dropped most of his requirements, but did not agree to end the seizures of American ships. Pinckney and Marshall made preparations to leave France, while Gerry intended to stay in the hopes of averting a war.
====The United States prepares for War with France====
