1797 - The XYZ Affair
Washington retired in 1797, firmly declining to serve for more than eight years as the nation’s head. Thomas Jefferson of Virginia (Republican) and John Adams (Federalist) vied to succeed him. Adams won a narrow election victory. From the beginning, however, he was at the head of a party and an administration divided between his backers and those of his rival, Hamilton.
As the end of the 18th century drew near, relations between the United States and France were deteriorating. President John Adams wanted to preserve American neutrality in conflicts between Britain and France. Adams faced serious international difficulties. France, angered by Jay’s treaty with Britain, adopted its definition of contraband and began to seize American ships headed for Britain. By 1797 France had snatched 300 American ships and broken off diplomatic relations with the United States.
Adams sent a minister to France who was not received. The French minister of foreign relations informed the American minister that the French Executive Directory had determined not to receive another minister… from the United States until after the redress of grievances… During his residence at Paris, cards of hospitality were refused him, and he was threatened with being subjected to the jurisdiction of the minister of police.
President Adams then addressed a joint session of Congress on May 16, 1797, expressing his concern about the possibility of war with France and dissension at home caused by France and its supporters. Adams addresses directly the members of the joint session of Congress, warning about the danger of “foreign and domestic factions” on American citizens: " …endeavors have been employed to foster and establish a division between the Government and people of the United States. To investigate the causes which have encouraged this attempt is not necessary; but to repel, by decided and united councils, insinuations so derogatory to the honor and aggressions so dangerous to the Constitution, union, and even independence of the nation is an indispensable duty. It must not be permitted to be doubted whether the people of the United States will support the Government established by their voluntary consent and appointed by their free choice, or whether, by surrendering themselves to the direction of foreign and domestic factions, in opposition to their own Government, they will forfeit the honorable station they have hitherto maintained… "
In October 1797, three commissioners appointed by Adams arrived in Paris in hopes of "restoring mutual confidence" between the countries. French Foreign Minister Charles Maurice de Talleyrand's agents (whom Adams labeled X, Y, and Z in his report to Congress) assumed to be acting on Talleyrand's orders — demanded a bribe, presumably for Talleyrand himself, and a large loan for France. These three agents informed the Americans that negotiations could only begin if the United States loaned France $12 million and bribed officials of the French government.
The American people were incensed. American hostility to France rose to an excited pitch. The so-called XYZ Affair led to the enlistment of troops and the strengthening of the fledgling U.S. Navy. War with France seemed inevitable; in fact, the U.S. is often described as being in an undeclared war with France following the XYZ affair.
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