been moving into this area, despite diplomatic efforts to manage it, including the 1795 Pinckney's Treaty. By 1800, nearly 400,000 or 7.3% of Americans lived in trans-Appalachian territories, including the new states of Kentucky and Tennessee. Western economic development required access to the Mississippi River, particularly the vital port of New Orleans, and the U.S. much preferred a weak Spain to an aggressive and powerful France on their western and southern borders. The discovery that French agents were conducting military surveys to determine how best to defend Louisiana led to the 1798 Alien and Sedition Acts. With most of their fleet confined to port by the Royal Navy, the French relied on privateers operating off the U.S. coastline, and in the Caribbean. On July 7, 1798, Congress cancelled the 1778 Treaties and authorised attacks on French warships in American waters, resulting in the Quasi-War of 1798–1800. By arming 200 merchant ships, expanding the Navy, and informal co-operation with the British, the U.S. re-established control over its home waters. However, President John Adams remained keen to reach a diplomatic solution, and in early 1799, a diplomatic commission was approved, consisting of William Vans Murray, Oliver Ellsworth, and William Richardson Davie. Their objectives were to formally terminate the 1778 treaties, confirm American neutrality, agree compensation for shipping losses and end the Quasi-War, although they did not arrive in Paris until early 1800. During this delay, the French Directory was overthrown in November 1799, and replaced by the Consulate, headed by Napoleon. He was also keen on ending hostilities, since an important part of his support came from wealthy merchants, who wanted to re-establish their control over sugar-producing islands in the Caribbean. These were extremely profitable; prior to the abolition of slavery in 1793, the colony of Saint-Domingue produced more sugar and coffee than all the British West Indies combined. Negotiations Formal discussions with the recently re-appointed Foreign Minister Talleyrand did not begin until April and proceeded slowly. The main problem was the U.S. demand for $20 million compensation for shipping losses, which the Commissioners had been instructed to resolve before discussing revised treaties. As the French pointed out, measures taken by the Directory against American commerce had been annulled by the new government, while those imposed by the U.S. had just been renewed. They argued compensation only applied only if the 1778 treaties remained in force; either the U.S. confirmed the existing