Holland to side with Amsterdam and to call for a repeal of the “limited convoy” resolution.  The English on their part, well aware of all this, continued to do their utmost to stop all supplies reaching their enemies in Dutch bottoms, convoy or no convoy.  The British government, though confronted by so many foes, now took strong measures.  Admiral van Bylandt, convoying a fleet of merchantmen through the Channel, was compelled by a British squadron to strike his flag; and all the Dutch vessels were taken into Portsmouth.  This was followed by a demand under the treaty of 1678 for Dutch aid in ships and men, or the abrogation of the treaty of alliance and of the commercial privileges it carried with it.  Yorke gave the States-General three weeks for their decision; and on April 17, 1779, the long-standing alliance, which William III had made the keystone of his policy, ceased to exist.  War was not declared, but the States-General voted for “unlimited convoy” on April 24; and every effort was made by the Admiralties to build and equip a considerable fleet.  The reception given to the American privateer, Paul Jones, who, despite English protests, was not only allowed to remain in Holland for three months, but was feted as a hero (October-December, 1779), accentuated the increasing alienation of the two countries.

At this critical stage the difficult position of England was increased by the formation under the leadership of Russia of a League of Armed Neutrality.  Its object was to maintain the principle of the freedom of the seas for the vessels of neutral countries, unless they were carrying contraband of war, i.e.military or naval munitions.  Further a blockade would not be recognised if not effective.  Sweden and Denmark joined the league; and the Empress Catherine invited the United Provinces and several other neutral powers to do likewise.  Her object was to put a curb upon what was described by Britain’s enemies as the tyranny of the Mistress of the Seas.  The Republic for some time hesitated.  Conscious of their weakness at sea, the majority in the States-General were unwilling to take any overt steps to provoke hostilities, when an event occurred which forced their hands.

In 1778 certain secret negotiations had taken place between the Amsterdam regents and the American representatives at Paris, Franklin and Lee.  It chanced that Henry Lawrence, a former President of the Congress, was on his way from New York to Amsterdam in September, 1780, for the purpose of raising a loan.  Pursued by an English frigate, the ship on which he was sailing was captured off Newfoundland; and among his papers were found copies of the negotiations of 1778 and of the correspondence which then took place.  Great was the indignation of the British government, and it was increased when the Estates of Holland, under the influence of Amsterdam, succeeded in bringing the States-General (by a majority of four provinces to three) to join the League of Armed Neutrality.