In March 1797, Adams assumed office, and his presidency was quickly taken up with foreign affairs. Britain and France were at war, which influenced American trade directly. Washington had managed to maintain neutrality during his tenure, but by the time Adams became president, tensions had escalated. He sent a delegation to France in 1797 to negotiate a treaty, but the French refused to meet the delegates, and a large bribe was demanded by the French foreign minister, Charles Maurice de Talleyrand-Perigord (1754-1838). On these terms, Adams refused to deal with the French, and the bribery scandal, which became known as the XYZ Affair, immensely boosted the popularity of Adams. In 1798, between the United States and France, an undeclared naval war broke out and lasted until 1800, when a peace treaty was signed. By signing the Alien and Sedition Acts into law in 1798, Adams squandered his popularity. The acts, ostensibly written to protect American interests, gave the government broad powers to deport "enemy" aliens and arrest anyone who disagreed strongly with the government. These laws were attacked by Jefferson and his allies, who called themselves the Democratic-Republicans, declaring them unconstitutional. Having lost one oppressive government, many Americans feared that their new government might resort to similar tactics. While the laws were never abused and actually had built-in expirations, Adams was hurt and helped cost him the election in 1800.
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