He was succeeded as secretary of state by Lord Egremont, a man of small ability; the leadership of the commons was committed to Grenville, and Bedford took Temple's place as privy seal. Events soon vindicated the wisdom of Pitt's demand for instant war with Spain. Bristol in vain demanded satisfactory assurances from that court. At first Wall's answers were conciliatory, but naval preparations still went on. By November 2 all the treasure-ships had arrived safely. Their arrival caused a marked change in Wall's tone; he no longer disguised the hostile feeling of his court. At Christmas the Family Compact was published. It was of the same character as the compacts of 1733 and 1743, and arranged a strict alliance between the sovereigns of the house of Bourbon. It was formed between the Kings of France and Spain, the King of Spain also engaging for the King of the Two Sicilies, and it guaranteed the dominions of the three kings and of the Duke of Parma. Each sovereign was to send specified assistance to any of the others who might require it, but wars undertaken by France in consequence of engagements to German or northern states were not to be cases in which Spain should be bound to send help, "unless some maritime power should take part in them". These words pointed directly to Great Britain. On January 2, 1762, war was declared against Spain. France and Spain forced our ally, the King of Portugal, to declare war, and in the spring Spain invaded his kingdom. This new war afforded Bedford an opportunity for moving in parliament for the recall of the British troops from Germany. Bute, though equally desirous for their recall, opposed the motion as inopportune; circumstances, he said, had arisen which promised to enable us to lessen expenses and reduce the war. The motion was lost. The declaration of disagreement between two cabinet ministers on so serious a question illustrates the difference between the cabinet system of the time and that of to-day. The circumstances to which Bute referred were the death of Frederick's enemy, Elizabeth of Russia, on January 5, and the accession of Peter III., who was his ardent admirer. Peter restored East Prussia to Frederick, ordered Tchernitchev and his 20,000 men to withdraw from Glatz, and entered into negotiations for an alliance with Prussia, which was concluded later. Frederick's position was totally changed. Bute hoped that he would use this change of fortune to make peace; it naturally caused him to be more eager to prosecute the war for Silesia. When he applied for the renewal of the English subsidy of L670,000, Bute informed him that it would only be granted on condition that he gave assurances that he was ready to make peace. This Frederick would not do. Other difficulties arose between the two courts. Bute complained that Frederick was secretly negotiating with Russia for a separate treaty which would hinder a general peace, and thwart our