By this treaty the Bourbon houses of Spain and France contracted a close and perpetual alliance. Besides France and Spain the Bourbon Princes of Naples and Parma were to be admitted to it. There was a secret clause binding Spain to declare war on England if peace was not made before May 1762. The knowledge of this treaty induced Pitt not only to break off negotiations, but to determine upon war with Spain, for which he immediately made preparations, planning a great expedition against Havannah in the West and Manilla in the East Indies. With his usual haughtiness, he urged these measures upon the Council, but Temple alone supported him. He indignantly declared that he would not be responsible for measures he did not manage, and on the 5th of October resigned. Thus terminated that splendid administration which had raised England from the depths of degradation to a position of first-rate importance in Europe. [Sidenote: Bute virtual minister.] [Sidenote: War with Spain. 1762.] Bute was at once practically supreme in the Council, although he had yet to rid himself of Newcastle. He was afraid of Pitt's popularity, and did his best to injure him by persuading him to accept a pension, and the title of Lady Chatham for his wife, hoping by that means to make it appear that Pitt was not hostile to his Government, or at all events to wreck his popularity, which rested largely on the public belief in his disinterestedness. Lord Egremont became Secretary in his place. Before the year was over Pitt's wisdom was vindicated. The change of ministry in England and the safe arrival of the treasure-ships, which Pitt would have forestalled, changed the tone of the Spanish Government, and even the pacific Bute found it necessary to declare war in January 1762. Already the impossibility of Bute's peaceful view was demonstrated, but he none the less prevented the payment of the Prussian subsidy; although this looked very like a breach of faith, it could be urged in extenuation that Frederick's need was much lessened by the death of the Czarina and the accession of Peter III., a devoted friend and admirer of the Prussian King. Bute's policy was indeed so completely opposed to that of his predecessors, that there is reason to believe that he even used his influence to induce Russia to withdraw from its new alliance. This change of policy afforded Newcastle, who was conscious that he was sooner or later to be got rid of, an opportunity of leaving the ministry with dignity. On his resignation Bute at once named himself Prime Minister, and proceeded to carry out, in some points at least, his favourite principles. These were peace at almost any price, and the abandonment of continental connections, the increase and restoration of the power of the Crown, and Government without bribery. But these aspirations degenerated in practice into a war, which was successful owing to his predecessor's arrangements, a vindictive assault upon the