for a mutual restoration of conquests, with
the exception of Negapatam which was retained by England.

When parliament met on December 5, it was evident that the terms of
peace would be sharply criticised by both the parties in opposition, the
followers of North and of Fox. Shelburne was disliked and distrusted by
his colleagues, who considered him secretive and inclined to act alone,
and the government soon showed signs of dissolution. Richmond retired
from the cabinet in January, 1783, though he kept his office; the next
day Keppel resigned the admiralty because he was dissatisfied with the
preliminaries, and Carlisle, the lord steward, also resigned for the
same reason. Shelburne was prevented by his colleagues from making
overtures to North, and Pitt, who stood by him, tried to persuade Fox to
re-enter the ministry. Fox asked if Shelburne would remain, and Pitt
having answered that he would, at once declined. On this Pitt closed the
interview with, it is said, the words: "I did not come here to betray
Lord Shelburne". From that time Pitt and Fox were political enemies. The
Duke of Rutland having succeeded Carlisle as lord steward with a seat in
the cabinet, Grafton declared that Shelburne had no right to make an
addition to the cabinet without consulting its members, and that he was
making himself a "prime minister," and he too resigned the privy seal.
According to the whigs the cabinet was to dictate to the king whom he
should direct to form a cabinet, and was then to control its own
composition. Their constitutional ideas were warped by their desire to
perpetuate their own power.

The government was not in a case to speak with its enemies in the gate.
In the commons 140 members were known to be supporters of Shelburne, 120
were followers of North, and 90 of Fox; the intentions of the rest were
unknown or uncertain. With this division of parties and with the
government in a state of dissolution, Fox, if he had exercised a little
patience, might soon have formed a strong and united whig party. He
chose another course, and, on February 14, formed an alliance with North
on the basis of "mutual good-will and confidence"; they agreed that
enough had been done to reduce the influence of the crown, that though
the king should be treated with respect, he should have only "the
appearance of power," and that on the question of parliamentary reform
each should act as he chose. This coalition decided the fate of the
governme