Before the negotiations began, a treaty had been made between the republic and the French Government, by which it was stipulated that every effort should be made by both contracting parties to bring about an honourable and assured peace between the United Provinces, Spain, and the archdukes. In case of the continuance of the war, however, it was agreed that France should assist the States with ten thousand men, while in case at any time, during the continuance of the league, France should be attacked by a foreign enemy, she should receive from her ally five thousand auxiliary troops, or their equivalent in maritime assistance. This convention was thought by other powers to be so profitable to the Netherlands as to excite general uneasiness and suspicion.
The States would have gladly signed a similar agreement with England, but nothing was to be done with that Government until an old-standing dispute in regard to the cloth trade had been arranged. Middelburg had the exclusive right of deposit for the cloths imported from England. This monopoly for Zealand being naturally not very palatable to Amsterdam and other cities of Holland, the States-General had at last authorized the merchant-adventurers engaged in this traffic to deposit their goods in any city of the United Provinces. The course of trade had been to import the raw cloth from England, to dress and dye it in the Netherlands, and then to re-export it to England. Latterly, however, some dyers and clothiers emigrating from the provinces to that country, had obtained a monopoly from James for practising their art in his dominions. In consequence of this arrangement the exportation of undyed cloths had been forbidden. This prohibition had caused irritation both in the kingdom and the republic, had necessarily deranged the natural course of trade and manufacture, and had now prevented for the time any conclusion of an alliance offensive and defensive between the countries, even if political sentiment had made such a league possible. The States-General had recourse to the usual expedient by which bad legislation on one side was countervailed by equally bad legislation on the other. The exportation of undyed English cloths being forbidden by England, the importation of dyed English cloths was now prohibited by the Netherlands. The international cloth trade stopped. This embargo became at last so detestable to all parties that concession was made by the crown for a limited export of raw cloths. The concession was soon widened by custom into a general exportation, the royal Government looking through its fingers at the open infraction of its own laws, while the natural laws of trade before long re-established the old equilibrium. Meantime the ill-feeling produced by this dissension delayed any cordial political arrangement between the countries.
On the 5th of February the Spanish commissioners came for the first time before the States-General, assembled to the number of a hundred and thirty, in their palace at the Hague.