XYZ Affair: A Diplomatic Crisis in Early America

Historical Event

Date

May 16, 1797 - April, 1798

Location

Paris, France

Philadelphia, PA, USA

Result

Quasi-War with France

Introduction

The XYZ Affair was a major diplomatic conflict between the United States and France during 1797–1798, early in John Adams's presidency. It involved three American diplomats sent to negotiate peace with France, who were met by French agents demanding a bribe and a loan before talks could even begin. The public disclosure of this demand, using the secret agents labeled “X,” “Y,” and “Z,” caused a national uproar in the U.S. and nearly led to war. This incident escalated tensions, triggered the undeclared Quasi-War at sea, and led to significant political actions, including the Alien and Sedition Acts; the crisis ended with the Convention of 1800 peacefully resolving hostilities.

Background and causes of the XYZ Affair

During the late 1790s, tensions between the United States and France escalated due to strained relations after the 1794 Jay Treaty between the U.S. and Great Britain, which France viewed as a violation of the 1778 alliance with America. The treaty favored Britain and led France to seize numerous American ships, worsening diplomatic ties. In response, President John Adams sent a commission in 1797—comprising Charles Pinckney, John Marshall, and Elbridge Gerry—to negotiate peace with France. Instead of receiving formal discussions, the American diplomats were approached by French agents demanding bribes and loans before talks could begin. Offended, the Americans refused and left without a formal deal, sparking public outrage at the bribery attempt. This incident revealed deeper conflicts over neutrality during ongoing European wars and contributed to rising calls in the U.S. for military preparedness, setting the stage for the undeclared Quasi-War with France. The episode exposed both international challenges and emerging domestic political divisions.

What happened during the XYZ Affair

The XYZ Affair unfolded as a tense diplomatic episode involving American envoys and French officials in 1797.

Arrival of American envoys

In July 1797, President John Adams sent a three-man commission—Charles Cotesworth Pinckney, John Marshall, and Elbridge Gerry—to France representing the United States. Their mission was to negotiate with the French government to resolve growing conflicts threatening war. Upon arrival, the American diplomats found the French authorities cool and unwelcoming, a reflection of strained relations between the two countries.

Unofficial demands

Rather than engaging directly with the American delegation, French intermediaries—later identified only as X, Y, and Z in American reports—approached the envoys with unexpected conditions. These agents, representing the French foreign minister Charles Maurice de Talleyrand, demanded a substantial bribe and a loan to France as preconditions for any formal negotiations. Despite it being common practice at the time for diplomats to encounter bribery, the American commissioners were offended and refused to comply with the demands.

Breakdown and departure

The Americans never engaged in formal talks with Talleyrand. After the bribe demands were rejected, Charles Pinckney and John Marshall left France in protest, ending their part in the mission. Elbridge Gerry stayed behind longer, hoping to ease tensions and prevent open conflict while continuing informal communications with the French government.

Last exchanges

During his extended stay, Gerry maintained tentative discussions with Talleyrand, striving to keep diplomatic channels open and avert a full-scale war. However, these efforts did not lead to an agreement, and the mission was ultimately unsuccessful in securing peace or understanding. The American envoys returned home without having accomplished their goals, but their reports exposed the bribe attempt in the United States, surprising and angering the American public.

In this way, the XYZ Affair became a defining moment in early U.S.–French relations, illustrating how diplomatic efforts could be complicated by corruption and mistrust, setting the stage for future conflicts.

Outcomes of the XYZ Affair

The XYZ Affair led to several important outcomes for the United States. It caused a surge of anti-French feeling among Americans, which pushed President John Adams to build up the navy by adding six new frigates and creating a 10,000-man Provisional Army. This was part of the preparation for the Quasi-War, an undeclared naval conflict with France from 1798 to 1800.

The incident also sparked the controversial Alien and Sedition Acts in 1798. These laws allowed the government to deport foreigners and punish critics of the administration, which many Americans saw as attacks on free speech. The backlash included state challenges through the Virginia and Kentucky Resolutions, which argued these acts were unconstitutional.

Politically, the XYZ Affair deepened divisions, helping the Democratic-Republicans and Thomas Jefferson gain support, leading to his election in 1800.

Historical impact and legacy

The XYZ Affair had a lasting impact on U.S. politics and foreign policy. It led to the Quasi-War, an undeclared naval conflict with France, and sparked the creation of the Department of the Navy in 1798 to strengthen American naval power. Domestically, it prompted the passage of the controversial Alien and Sedition Acts, laws that limited free speech and targeted immigrants, which caused public backlash and deepened political divisions. The affair also influenced the rise of the Democratic-Republican Party and paved the way for Thomas Jefferson’s presidency and the Louisiana Purchase, which significantly expanded U.S. territory.