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Concerning the American Revolution and Europe

In the spring of 1776, Charles Gravier, comte de Vergennes, the Minister for Foreign Affairs, saw an opportunity to humiliate France's long-standing enemy, Great Britain, and to recover territory lost during the Seven Years' War, by supporting the American Revolution. In the same year Louis was persuaded by Pierre Beaumarchais to send supplies, ammunition, and guns to the rebels secretly. Early in 1778 he signed a formal Treaty of Alliance, and later that year France went to war with Britain. In deciding in favor of war, despite France's large financial problems, the King was materially influenced by alarmist reports after the Battle of Saratoga, which suggested that Britain was preparing to make huge concessions to the Thirteen Colonies and then, allied with them, to strike at French and Spanish possessions in the West Indies. Spain and the Netherlands soon joined the French in an anti-British coalition. After 1778, Great Britain switched its focus to the West Indies, as defending the sugar islands was considered more important than trying to recover the Thirteen Colonies. France and Spain planned to invade the British Isles themselves with the Armada of 1779, but the operation never went ahead.

France's initial military assistance to the American rebels was a disappointment, with defeats at Rhode Island and Savannah. In 1780, France sent Jean-Baptiste Donatien de Vimeur, comte de Rochambeau and François Joseph Paul de Grasse to help the Americans, along with large land and naval forces. The French expeditionary force arrived in North America in July 1780. The appearance of French fleets in the Caribbean was followed by the capture of a number of the sugar islands, including Tobago and Grenada. In October 1781, the French naval blockade was instrumental in forcing a British army under Cornwallis to surrender at the Siege of Yorktown. When news of this reached London in March 1782, the North ministry fell and Great Britain immediately sued for peace terms; however, France delayed the end of the war until September 1783 in the hope of overrunning more British colonies in India and the West Indies.

Great Britain recognized the independence of the Thirteen Colonies as the United States of America, and the French war ministry rebuilt its army. However, the British defeated the main French fleet in 1782 at the Battle of the Saintes and successfully defended Jamaica and Gibraltar. France gained little from the Treaty of Paris (1783) that ended the war, except the colonies of Tobago and Senegal. Louis XVI was wholly disappointed in his aims of recovering Canada, India, and other islands in the West Indies from Britain, as they were too well defended and the Royal Navy made any attempted invasion of mainland Britain impossible. The war cost 1,066 million livres, financed by new loans at high interest (with no new taxes). Necker concealed the crisis from the public by explaining only that ordinary revenues exceeded ordinary expenses, and not mentioning the loans. After he was forced from office in 1781, new taxes were levied.

This intervention in America was not possible without France adopting a neutral position in European affairs to avoid being drawn into a continental war which would be simply a repetition of the French policy mistakes in the Seven Years' War. Vergennes, supported by King Louis, refused to go to war to support Austria in the War of the Bavarian Succession in 1778, when the Queen's brother Joseph II, Holy Roman Emperor tried to partition Bavaria over a disputed inheritance. Vergennes and Maurepas refused to support the Austrian position, but the intervention of Marie Antoinette in favor of Austria obliged France to adopt a position more favorable to Austria, which in the Treaty of Teschen was able to get in compensation the Innviertel, a territory whose population numbered around 100,000 persons. However, this intervention was a disaster for the image of the Queen, who was named " l'Autrichienne " (a pun in French meaning "Austrian", but the "chienne" suffix can mean "bitch") on account of it.