WHAT IT WAS:

The XYZ affair was a diplomatic incident that occurred

between the US and France in 1797. One of the things that

Jay’s Treaty (between US and Britain) did was limit the ability

of nations that were not on Britain’s side to trade in US ports.

Since Britain and France were at war, France saw US as a

hostile nation and began seizing American vessels and

seamen. The president, John Adams decided to send

negotiators to settle the matters. The the French diplomats

(X,Y,Z) demanded an outrageous bribe of 250,000 dollars

just to speak with the French Foreign Minister Talleyrand and even more money to settle the issue. The US negotiators refused to comply to the French demands, This affair between the two countries resulted in tense hostility, though it was later ameliorated by a treaty later.

 

WHY IT'S IMPORTANT: 

Since the peaceful negotiation that President Adams hoped for did not take place, and the Americans were outraged by the demand of bribe by the French, the hostility between the two countries increased. Many Americans wanted a war, despite Jeffersonian opposition. There were partial preparations being made for war - the navy department was created, and the marine corps were re-established. There were battles at the sea, especially in the West Indies. Ultimately, the two countries did not get into a major war. France declared that if America would send a new minister, there would be a more proper, peaceful negotiation. Convention of 1800 was signed in Paris - it annulled France and American Alliance and France returned the captured American ships, although US had to pay for the damage claims of American shippers. Also, since the deeds of John Adams was so unpopular, he was not reelected for the next term of presidency,