of Alegrete (1682–1736). The early years of the War of Spanish Succession, in Flanders, had been rather fruitless. The Tory Party in England was concerned about the cost of the war, and felt that naval warfare was a much cheaper option, with greater potential for success. Portugal offered the advantage of deep-water ports near the Mediterranean which could be used to counter the French Naval base at Toulon. Treaty There were three major elements to the Methuen Treaties. The first was the establishment of the war aims of the Grand Alliance. Secondly, the agreement meant that Spain would become a new theatre of war. Finally, it regulated the establishment of trade relations, especially between England and Portugal. Until 1703 the Grand Alliance had never established any formal war aims. The Methuen Treaties changed this as it confirmed that the alliance would try to secure the entire Spanish Empire for Charles of Austria, the Habsburg claimant to the Spanish thrones. The first treaty also established the numbers of troops the various countries would provide to fight the campaign in Spain. The Portuguese also insisted that Archduke Charles would come to Portugal to lead the forces in order to ensure full allied commitment to the war in Spain. The second treaty, signed on 27 December 1703 (popularly known as the "Port Wine Treaty") helped to establish trading relations between England and Portugal. The terms of it allowed English woollen cloth to be admitted into Portugal free of duty; in return, Portuguese wines imported into England would be subject to a third less duty than wines imported from France. This was particularly important in helping the development of the port industry. As England was at war with France, it became increasingly difficult to acquire wine, and so port started to become a popular replacement. Cypher and Dietz, in the book ″The Process of Economic Development″, say that: "Portugal specialized in a commodity that did not have the same growth potential as did cloth for England. Portugal's economy suffered consequently, as the productive structure and institutions were moulded in the direction of wine production. In fact, after trade was rapidly expanded following the Methuen Treaty in 1703, Portugal was left with a sizeable deficit as its exports to England fell short of its imports from England. The boom in Portuguese-English trade fortuitously coincided with a gold rush in Brazil, Portugal's colony, enabling the Portuguese