Treaty of Paris, Great Britain ceded control of the disputed lands between the Great Lakes and the Ohio River, but the Indian inhabitants were not a part of the peace negotiations. Tribes in the Northwest Territory joined as the Western Confederacy and allied with the British to resist American settlement, and their conflict continued after the Revolutionary War as the Northwest Indian War. Britain's "American war" and peace Changing Prime Ministers Lord North, Prime Minister since 1770, delegated control of the war in North America to Lord George Germain and the Earl of Sandwich, who was head of the Royal Navy from 1771 to 1782. Defeat at Saratoga in 1777 made it clear the revolt would not be easily suppressed, especially after the Franco-American alliance of February 1778, and French declaration of war in June. With Spain also expected to join the conflict, the Royal Navy needed to prioritize either the war in America or in Europe; Germain advocated the former, Sandwich the latter. British negotiators now proposed a second peace settlement to Congress. The terms presented by the Carlisle Peace Commission included acceptance of the principle of self-government. Parliament would recognize Congress as the governing body, suspend any objectionable legislation, surrender its right to local colonial taxation, and discuss including American representatives in the House of Commons. In return, all property confiscated from Loyalists would be returned, British debts honored, and locally enforced martial law accepted. However, Congress demanded either immediate recognition of independence or the withdrawal of all British troops; they knew the commission were not authorized to accept these, bringing negotiations to a rapid end. When the commissioners returned to London in November 1778, they recommended a change in policy. Sir Henry Clinton, the new British Commander-in-Chief in America, was ordered to stop treating the rebels as enemies, rather than subjects whose loyalty might be regained. Those standing orders would be in effect for three years until Clinton was relieved. North initially backed the Southern strategy attempting to exploit divisions between the mercantile north and slave-owning south, but after the defeat of Yorktown, he was forced to accept the fact that this policy had failed. It was clear the war was lost, although the Royal Navy forced the French to relocate their fleet to the Caribbean in November 1781 and resumed a close blockade of American trade. The resulting economic damage and rising inflation meant the US