On October 27, 1795 his prime minister, Manuel de Godoy of Spain and Thomas Pinckney concluded the Treaty of San Lorenzo, better known as Pinkney's treaty. This was a big diplomatic success for the United States and for President George Washington. It resolved territorial disputes between the U.S. and Spain and opened the Mississippi river to American ships with duty-free transport through the port of New Orleans still under Spanish control. Up until this point, Spain had closed the Mississippi river to American shipping because they did not want to encourage U.S. trade and settlement in the western frontier. This was Spanish policy prior to 1789, but they lost heir focus during the wars of the French Revolution when Spain joined forces with European allies in the fight against France. After suffering defeats in both the Caribbean and Europe, Spain tried to sever it's alliance with Great Britain and restore peace with France.
During this time, John Jay was negotiating a treaty of peace with Great Britain and Spain feared that this might result in an American alliance with Britain. With Spain's political power and military position weakening, Govoy sent a request to negotiate a new treaty with the United States. Thomas Pinckney who was currently the U.S. minister to Great Britain was sent to Spain in June of 1796. Godoy offered to accept our proposal of a border along the 31st parallel and free navigation of the Mississippi in return for our commitment of an alliance with Spain. Pinckney played hard-ball; he rejected the alliance and threatened to leave without signing the treaty. Govoy caved in and agreed to Pinkney's demands. Pinkney's treaty was very popular with the American public especially in the South and especially the West where it encouraged westward expansion to continue.
In Washington's final state of the union he announced that the commissioner of the United States (Thomas Pinckney) had returned from Spain after signing the Treaty of Friendship, Limits, and Navigation Between Spain and the United States. The boundary lines between the Untied States and His Catholic Majesty's provinces of East and West Florida were drawn and "troops were ordered to occupy the posts from which the Spanish garrisons should be withdrawn". Article 6 of the treaty added that efforts to recover and cause to be restored to the right owners their Vessels and effects which may have been taken from them within the extent of their said jurisdiction whether they are at war or not. But Washington, added in his last state of the Union wrote that at the time, no information regarding the claims put forth by American citizens had yet been received.
Here is the excerpt from George Washington's final state of the union address regarding Pinkney's treaty:
"The treaty with Spain required that the commissioners for running the boundary line between the territory of the United States and His Catholic Majesty's provinces of East and West Florida should meet at the Natchez before the expiration of 6 months after the exchange of the ratifications, which was effected at Aranjuez on the 25th day of April [1796-04-25]; and the troops of His Catholic Majesty occupying any posts within the limits of the United States were within the same time period to be withdrawn. The commissioner of the United States therefore commenced his journey for the Natchez in September, and troops were ordered to occupy the posts from which the Spanish garrisons should be withdrawn. Information has been recently received of the appointment of a commissioner on the part of His Catholic Majesty for running the boundary line, but none of any appointment for the adjustment of the claims of our citizens whose vessels were captured by the armed vessels of Spain."http://www.presidency.ucsb.edu/ws/index.php?pid=29438
https://history.state.gov/milestones/1784-1800/pickney-treaty
http://www.mountvernon.org/educational-resources/primary-sources/pinckneys-treaty-1795/
http://www.wwnorton.com/college/history/archive/resources/maps/ch08_02.gif
In 1797, then President John Adams gave an update regarding Pinkney's treaty. The Spanish still had troops stationed in U.S. territory, and the running of the boundary line had not yet begun.
"by the latest authentic intelligence Spanish garrisons were still continued within our country, and the running of the boundary line had not been commenced. These circumstances are the more to be regretted as they can not fail to affect the Indians in a manner injurious to the United States. Still, however, indulging the hope that the answers which have been given will remove the objections offered by the Spanish officers to the immediate execution of the treaty, I have judged it proper that we should continue in readiness to receive the posts and to run the line of limits. "http://www.presidency.ucsb.edu/ws/index.php?pid=29439
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