[2] The 1670 Treaty of Madrid was highly favourable to England, as its adverse possession in the Caribbean Sea and the rest of the Americas was confirmed and made legal by Spain.

[5] The region thus remained in a state of war, and privateer raids were launched on the Spanish Main led by buccaneers notably Christopher Myngs and Henry Morgan under the behest of Jamaican Governor Thomas Modyford[2] As far as Modyford was concerned, Jamaica would never be secure until Spain had acknowledged England's possession of Jamaica and the Cayman Islands and in a treaty.

[2] Charles saw an opportunity that he could not miss and felt the time was right to negotiate a treaty with Spain since England held a great advantage.

[5] Negotiations began in the autumn of 1669 between the Spanish representative Gaspar de Bracamonte, Count of Peñaranda, with William Godolphin, Envoy Extraordinary from England.

[10] Spain began to legally recognize in Article VII of the 1670 Treaty of Madrid, any territories in the Americas known as the Western Hemisphere that England's subjects had illegally settled by adverse possession.

All offences, damages, losses, injuries, which the Nations and People of Great Britain and Spain have at anytime heretofore, upon what cause and pretext soever, suffered by each other in America, shall be expunged out of remembrance and buried in oblivion, as if no such thing had ever past.

Moreover, it is agreed, that the Most Serene King of Great Britain, his Heirs and Successors, shall have, hold, keep, and enjoy for ever, with plenary right of Sovereignty, Dominion, Possession, and Propriety, all those Lands, Regions, Islands, Colonies, and places whatsoever, being situated in the West Indies, or in any part of America, which the said King of Great Britain and his Subjects do at present hold and possess, so as that in regard thereof, or upon any colour or pretence whatsoever, nothing more may or ought to be urged, nor any question or controversy be ever moved concerning the same hereafter.

[12]Under the terms of the treaty, all letters of reprisal were revoked by Spain, and reciprocal aid to ships in distress along with permission to repair in each others ports were required.

[21] News of the treaty, however, did not reach the Caribbean in time for Henry Morgan, who on 28 January 1671 launched a devastating raid on Panama City.