His foreign policy was equally wise. The Principality of Liége lay between two mighty neighbours, and at first the Bishop's aim was to remain neutral in any disputes which might arise between the Emperor and the King of France. But when, on the death of Maximilian, Charles V. and Francis I. were rivals for the imperial crown, he went to the Diet at Frankfort, and supported the claims of Charles. From that time the Principality, though independent of the rest of Belgium, which formed part of the dominions of Charles V., was in as close relations with the German Empire as the electorate of Cologne and other ecclesiastical fiefs.[61] The bishops, chosen by the Chapter of Liége, and confirmed by the Pope, were invested by the Emperor with the secular power, and belonged to the Westphalian circle of the German confederation. In the strong hands of Bishop Érard the Principality had one of its rare intervals of peace. He found the city of Liége in debt, and the public service disordered by want of money. Many plans for raising funds were laid before him. He examined them all, and then said to his council: 'If you will leave everything to me for four years, I promise to meet all your debts, and put your finances in order without oppressing anyone, and without imposing new taxes.' This offer was accepted, and, so great was his talent for business, in two years Liége was free from all liabilities. During his reign almost every trace of the destruction wrought by Charles the Bold disappeared. The citadel of Dinant was restored. Huy and other places rose from their ashes, and the Bishops' Palace, which stands in the Place St. Lambert at Liége (the _Palais de Justice_ of to-day), was built. He died in 1538, having kept the turbulent community of Liége quiet for thirty years.