The results of the victory of Prussia over Austria at Sadowa, and the formation of the North German Confederation under Prussian leadership, rendered the conduct of foreign relations a difficult and delicate task, especially as regards Luxemburg and Limburg, both of which were under the personal sovereignty of William III, and at the same time formed part of the old German Confederation. The rapid success of Prussia had seriously perturbed public opinion in France; and Napoleon III, anxious to obtain some territorial compensation which would satisfy French amour-propre, entered into negotiations with William III for the sale of the Grand Duchy of Luxemburg. The king was himself alarmed at the Prussian annexations, and Queen Sophie and the Prince of Orange had decided French leanings; and, as Bismarck had given the king reason to believe that no objection would be raised, the negotiations for the sale were seriously undertaken. On March 26, 1867, the Prince of Orange actually left the Hague, bearing the document containing the Grand Duke’s consent; and on April 1 the cession was to be finally completed. On that very day the Prussian ambassadors at Paris and the Hague were instructed to say that any cession of Luxemburg to France would mean war with Prussia. It was a difficult situation; and a conference of the Great Powers met at London on May 11 to deal with it. Its decision was that Luxemburg should remain as an independent state, whose neutrality was guaranteed collectively by the Powers, under the sovereignty of the House of Nassau; that the town of Luxemburg should be evacuated by its Prussian garrison; and that Limburg should henceforth be an integral part of the kingdom of the Netherlands.
Van Zuylen was assailed in the Second Chamber for his exposing the country to danger and humiliation in this matter; and the Foreign Office vote was rejected by a small majority. The ministry resigned; but, rather than address himself to Thorbecke, the king sanctioned a dissolution, with the result of a small gain of seats to the liberals. Heemskerk and Van Zuylen retained office for a short time in the face of adverse votes, but finally resigned; and the king had no alternative but to ask Thorbecke to form a ministry. He himself declined office, but he chose a cabinet of young liberals who had taken no part in the recent political struggles, P.P. van Bosse becoming first minister.