The XYZ Affair was a significant diplomatic incident between the United States and France that occurred in the late 1790s, specifically in 1797-1798. It involved a confrontation that led to an undeclared naval war known as the Quasi-War.
The affair began when the French government, under the Directory, began seizing American ships that were trading with Britain, leading to tensions between the two nations. In response, President John Adams sent a delegation to France to negotiate and resolve the issues. However, when the American diplomats arrived, they were approached by three French agents (referred to as X, Y, and Z in diplomatic reports) who demanded bribes and loans for France before negotiations could begin. This demand outraged the American delegates and, when the information was made public, it caused a fervent wave of anti-French sentiment in the United States.
Americans were particularly incensed that a foreign power would attempt to extort money from their representatives. The slogan “Millions for defense, but not one cent for tribute” became popular at the time, highlighting the national outrage. This incident contributed to the rise of the Federalist Party’s popularity, which favored a strong military response and was generally pro-British in its foreign relations.
In response to the situation, the U.S. began to build up its navy, leading to an informal maritime conflict with France. The XYZ Affair played a key role in shaping American foreign policy and public opinion in favor of a more assertive stance against foreign powers. It also heightened political divisions within the United States, particularly between the Federalists and the Democratic-Republicans.