Fourth Anglo-Dutch War

Main article: Fourth Anglo-Dutch War

The Dutch Republic, nominally neutral, had been trading with the Americans, exchanging Dutch arms and munitions for American colonial wares (in contravention of the British Navigation Acts), primarily through activity based in St. Eustatius, before the French formally entered the war.^[134] The British considered this trade to include contraband military supplies and had attempted to stop it, at first diplomatically by appealing to previous treaty obligations, interpretation of whose terms the two nations disagreed on, and then by searching and seizing Dutch merchant ships. The situation escalated when the British seized a Dutch merchant convoy sailing under Dutch naval escort in December 1779, prompting the Dutch to join the League of Armed Neutrality. Britain responded to this decision by declaring war on the Dutch in December 1780, sparking the Fourth Anglo-Dutch War.^[135] The war was a military and economic disaster for the Dutch Republic. Paralyzed by internal political divisions, it could not respond effectively to British blockades of its coast and the capture of many of its colonies. In the 1784 peace treaty between the two nations, the Dutch lost the Indian port of Negapatam and were forced to make trade concessions.^[136] The Dutch Republic signed a friendship and trade agreement with the United States in 1782, becoming the second country to formally recognize the United States.