Have you heard of the XYZ Affair? Did you know that it involved three anonymous French agents who created anger and shock in the American people? Did you know that it almost led to a war between the United States and France? If you answered “no” to any of these questions, then this APUSH exam review is for you! By the end of this review, you should be able to answer any APUSH multiple choice question or essay with ease.
Definition
The XYZ Affair was a diplomatic crisis that happened between the United States and France. President John Adams wanted to avoid a war, but the XYZ Affair created more tension between the two nations, and even within the United States itself.
Tensions between the US and Great Britain
The United States was a neutral nation during this time. It sided with neither Great Britain, nor France. However, the British were, quite frankly, acting like bullies. They did not allow neutral countries to trade with France. In order to enforce this law, the British seized American ships traveling to France. All of the goods and products travelling from the US to France were taken and American seamen were forced to serve in the British Royal Navy. This, of course, was a major problem for the United States.
In order to try and remedy the situation and prevent further hostility between the two nations, President George Washington sent an American diplomat, John Jay, to Great Britain. Compromises were made and the Jay Treaty was ratified.
The Jay Treaty of 1795
The main cause of the XYZ Affair was the signing of the Jay Treaty between the US and Great Britain. The treaty was meant to prevent a war between the two nations by not allowing the US to trade with “hostile nations,” such as France. France and Great Britain were at war during this time, so this treaty caused French leaders to believe that the US was siding with the British. In actuality, the US wanted to remain neutral and avoid war. The French also saw the Jay Treaty as a breach of the 1778 Treaty of Alliance between France and the US, which forged a military alliance between the two against Britain.
Clearly, the United State’s attempts at remaining neutral were not working. Pleasing both Britain and France at the same time was a tricky task. Many Americans saw the Jay Treaty as an embarrassing surrender to the British. It angered the American people and many Europeans, especially the French. French leaders were offended because Britain was allowed to trade with the US, and they were not. Ultimately, the Jay Treaty prevented a war between the US and Great Britain, but it created another problem between the US and France.
Aftermath of the Jay Treaty
Relations were good between the US and Britain following the Jay Treaty. It is credited with creating peaceful trade and strong economic ties between the two nations. However, after the Jay Treaty was signed in 1795, the French were not so enthusiastic. During the American Revolutionary War, the French had been allied with the US and had helped them fight against Great Britain. The French probably expected the Americans to return the favor and help them in their war against the British. But all of the sudden, the US seemed to be allied with Britain. The French, offended by what they viewed as a betrayal by the United States, retaliated by capturing over 300 American trade ships in the West Indies.
Negotiations with France
The XYZ Affair happened during an attempted negotiation with France to avoid war. Again, the US wanted to stay neutral and not become involved in any wars. After the Jay Treaty left the relationship between the US and France very strained, President John Adams needed to take action. He sent three American diplomats, John Marshall, Elbridge Gerry and Charles C. Pinckney, to France to negotiate peace with French leaders. When the three Americans arrived in France, they were not welcomed into the country with open arms. In fact, they were forced to wait weeks before anyone would even discuss peace terms with them. Finally, the three Americans were met by three French agents, known later as “X,” “Y,” and “Z.” They demanded a $250,000 bribe and $12 million in loans to even speak with French Foreign Minister Talleyrand.
The American diplomats were shocked and insulted. Political bribes during this time were common, but the amount the French representatives demanded was ridiculous. Marshall, Gerry, and Pinckney refused to pay the bribes, with Pinckney famously saying, “No, no, not a sixpence!”
This failed negotiation became known as the XYZ Affair, named after the anonymous identities of the three French agents who met with the American diplomats.
Impact of the XYZ Affair
When news arrived of the outrageous French demands, the American people were angry. There was huge public sentiment for war, especially by the Federalists. Even the Democratic-Republicans who supported the French joined in the rally cries: “Millions for defense, but not one cent for tribute.”

In 1798, John Adams sent a message to Congress, saying, “I will never send another minister to France without assurances that he will be received, respected, and honored as the representatives of a great, free, powerful, and independent nation.”
However, Adams refused to go to war. He believed that a war with France would divide the colonies and possibly lead to a civil war. He did, however, agree to build up American forces, tripling the size of the US army and creating the Navy Department to construct over 40 new warships.
The XYZ Affair also led to the Alien and Sedition Acts, which were laws effecting French and pro-French immigrants. They extended the naturalization of immigrants from five to 14 years, made it legal to deport French immigrants if the two nations went to war, and prevented people from expressing any false or malicious writing against the government.
Although France and the US never officially went to war, there was an undeclared naval war, called the Quasi-War, between the two nations. President Adams even brought George Washington out of retirement to lead the American military. By 1799, American forces had captured over 90 French ships. The French had also seized several American ships in the Caribbean.
Finally, in 1800, peace terms between France and the US were settled. Talleyrand, realizing the mistake he had made during the XYZ Affair, wanted to mend his relationship with the United States, especially since France was at war with Britain and he feared that the US would ally with Britain against him. The Convention of 1800, also known as the Treaty of Mortefontaine, declared all alliances with France as “no longer operative,” and asserted a “firm, inviolable, and universal peace, and a true and sincere Friendship between the French Republic, and the United States of America.”
For the APUSH Exam
Don’t worry too much about the specifics of the XYZ Affair. For example, there should be no questions on the AP® US History exam about the names of the three American diplomats who were involved. However, make sure you know the impact of the XYZ Affair. For example, know that it led to cries for war, the Alien and Sedition Acts, the undeclared Quasi-War, and ultimately, peace settlements between the two nations. Also understand that the XYZ Affair showed the United State’s demand to be treated with respect.
A specific example of a free-response essay question is from the 2002 APUSH exam. The question asked students to discuss the ways the United States sought to advance its interest in world affairs between 1789 and 1823. You could easily talk about the XYZ Affair and how it led to the Alien and Sedition Acts, the Quasi-War, and strained relations between the US and France. It’s also important to remember here that during this time, the United States wanted to remain neutral and maintain the peace.
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