The XYZ Affair was a political and diplomatic episode in 1797 and 1798, early in the presidency of John Adams, involving a confrontation between the United States and Republican France that led to the Quasi-War.
Although it was widely known that diplomats from other nations had paid bribes to deal with Talleyrand at the time, the Americans were offended by the demands, and eventually left France without ever engaging in formal negotiations.
[2] With the Jay Treaty, ratified in 1795, the United States reached an agreement on the matter with Britain that angered members of the Directory that governed France.
Shortly after assuming office on March 4, 1797, President John Adams learned that Charles Cotesworth Pinckney had been refused as U.S. minister because of the escalating crisis, and that American merchant ships had been seized in the Caribbean.
[6][a] Popular opinion in the United States on relations with France was divided along largely political lines: Federalists took a hard line, favoring a defensive buildup but not necessarily advocating war, while Democratic-Republicans expressed solidarity with the republican ideals of the French revolutionaries and did not want to be seen as cooperating with the Federalist Adams administration.
Vice President Thomas Jefferson, himself a republican, looked upon Federalists as monarchists who were linked to Britain and therefore hostile to American values.
[9] Congress approved this choice of commissioners, and Adams instructed them to negotiate similar terms to those that had been granted to Britain in the Jay Treaty.
Ministerial changes took place in the first half of 1797, including the selection in July of Charles Maurice de Talleyrand as foreign minister.
The Directory, generally not well-disposed to American interests, became notably more hostile to them in September 1797, when an internal coup propelled several anti-Americans into power.
[17] In part based on advice imparted to French diplomats by Jefferson, Talleyrand decided to adopt a measured, slow pace to the negotiations.
[30] The commissioners eventually divided over the issue of whether to continue informal negotiations, with the Federalists Marshall and Pinckney opposed, and Gerry in favor.
Both sides prepared statements to be sent across the Atlantic stating their positions, and Marshall and Pinckney, frozen out of talks that Talleyrand would only conduct with Gerry, left France in April.
[38] Gerry resolutely refused to engage in further substantive negotiations with Talleyrand, agreeing only to stay until someone with more authority could replace him,[38] and wrote to President Adams requesting assistance in securing his departure from Paris.
[39] Talleyrand eventually sent representatives to The Hague to reopen negotiations with William Vans Murray, and Gerry finally returned home in October 1798.
His cabinet urged that the nation's military be strengthened, including the raising of a 20,000-man army and the acquisition or construction of ships of the line for the navy.
[41] The commission's apparent failure was duly reported to Congress, although Adams kept secret the mistreatment (lack of recognition and demand for a bribe) of the diplomats, seeking to minimize a warlike reaction.
[42] Democratic-Republican leaders in Congress, believing Adams had exaggerated the French position because he sought war, united with hawkish Federalists to demand the release of the commissioners' dispatches.
[46] Federalists used the dispatches to question the loyalty of pro-French Democratic-Republicans; this attitude contributed to the passage of the Alien and Sedition Acts, restricting the movements and actions of foreigners, and limiting speech critical of the government.
In exchange Talleyrand confirmed privately to Gerry that the agents were in fact in his employ, and that he was, contrary to statements made to the Directory, interested in pursuing reconciliation.
[51] The warlike attitude of the United States and the start of the Quasi-War (a naval war between the two countries that was fought primarily in the Caribbean) convinced Talleyrand that he had miscalculated in his dealings with the commissioners.
[52] This agreement was made with First Consul Napoleon Bonaparte, who had overthrown the Directory in the Coup of 18 Brumaire in November 1799, and it was ratified by the United States Senate in December 1801.