At the beginning of the twelfth century the old distinction between Lotharingia and Flanders had practically ceased to exist. The emperor's prestige, greatly diminished by the Struggle of the Investitures, was no longer strong enough to keep the Belgian princes east of the Scheldt within the bounds of their allegiance. The most loyal of them, the Count of Hainault, would not even depart from neutrality during the war waged between Frederick Barbarossa and the French king. "He was not obliged," he declared, "to put his fortunes in the hands of the imperial troops and to grant them passage across his territory, as that would bring devastation to his country." The development of trade and industry had shifted the centre of interest from Germany, which remained purely feudal and agricultural, to Flanders, which represented a far more advanced civilization, based on the free development of the cities. When the princes of Brabant, Hainault and the other principal cities looked for an example or for some political support, they no longer had to seek it outside the country. Even Liege was gradually drawn within the circle of Flanders's influence. This lead, given by one Belgian principality to the others, over the Scheldt boundary, marks the break-up of the division of the country between France and Germany inaugurated at the treaty of Verdun, and prepares the work of centralization which brought about the creation of Belgian nationality. The policy of Flanders was determined by the desire to preserve peace with England and with France, Germany playing only a very secondary part in European affairs at the time. Good relations with England were essential to the Flemish cloth industry, since most of the wool was imported from this country through Bruges. As the power of the French kings increased, the Flemish counts endeavoured also to avoid any conflict with their suzerains, since their northern allies could not bring them sufficient military help to prevent the country's invasion. Counts and Communes tried in vain to remain neutral. Neutrality was impossible, and, whenever it was infringed, Flanders had invariably to suffer from the consequences, either through the ruin of her trade or through the loss of her liberties. [_BOUVINES_]