It was an extremely tense moment in history. This happened one morning in London, when the high commanders of France, Spain and the United Kingdom were meeting. There was also the Queen of Spain and the Emperor of the French, among others. That day, they had to decide what to do with a very long-standing debt. The question is: How to get repayment of loans to Mexico? Unfortunately, the answer cannot be that short.

A kilometer of debt. After gaining independence in 1821, Mexico went through decades of political instability, civil wars, and international conflicts, leaving the country in a very critical economic situation. During this time he accumulated large debts to almost all foreign powers of the time, especially England, Spain and France. The situation was such that the country issued bonds to finance itself and sought loans from foreign banks and governments.

Here we jump in time to the mid-9th century. While debt had been a concern in the past, Mexico’s financial situation was now unsustainable; A large part of the country’s income went directly to paying interest on foreign debt. Why? It is never easy to repay the economic debt between countries, but the governments that succeeded after independence were not able to manage the country’s struggling economy in the best way, and the war with the United States between 1846 and 1848, the control of a large part of Mexican territory, led to widespread economic crisis. made it worse.

Moratorium. The year is 1858. Benito Juárez, a liberal reformist, becomes president of Mexico following the so-called Reform War (1858-1860) between liberals and conservatives, which further weakened the country. At this point in history, Juárez made a seemingly historic decision: to not dwell on the problem and confront the crushing foreign debt head on.

Thus, on July 17, 1861, the current president decreed a two-year moratorium on the payment of the foreign debt. So all payments to foreign creditors have been temporarily suspended, we are talking about a list that includes the UK, Spain and France. The truth is that this measure did not need much thought; It was planned due to the Mexican government’s lack of resources and the urgency of investing in the country’s reconstruction after years of civil war.

Of course, all that remained was to know how the three countries that were eagerly awaiting the direction Juárez would take would follow this. The moratorium was not welcomed at all.

London Convention. And here we return to the beginning. That morning in London, Mexico’s fate would be decided. Faced with a moratorium, Britain, France and Spain came together to protect their interests and guarantee the payment of their debts. Like? In October 1861, they signed the now-historic Convention of London, a three-way agreement stipulating a joint intervention in Mexico to demand payment of the debt, whether by false or fraudulent means.

It turned out that the initial purpose of this alliance was simply to pressure Mexico to resume payments, and in fact no one was proposing to overthrow the Juárez government. In this way, the history books take us to the coast of Veracruz in December 1861 and early 1862, to an enclave from which three powers sent expeditionary forces.

We are leaving. If we pay attention to what is said, what happened a few days later was a complete “horror”. Although the three powers initially acted together, differences soon emerged. Why? England and Spain were primarily concerned with collecting their debts and protecting the interests of their citizens residing in Mexico. In fact, both countries began negotiations with the Juárez government to reach an agreement.

After negotiations with the Mexican government in April 1862, both countries decided to withdraw their troops. Neither the British nor the Spanish saw a clear way to go “further”, wanting to become involved in deeper intervention, mainly because they had no colonial interests in Mexico and feared the conflict would prolong.

However, III. France, led by Napoleon, had a different plan.

An attempt to establish an empire. As we said, France had its own (imperialist) plans and ambitions in Mexico. The idea was that Napoleon III would take advantage of the country’s instability to establish a Mexican empire that was responsive to French interests. Napoleon’s plan: to overthrow Juárez and place the Austrian archduke Maximilian of Habsburg on the throne.

Background: It cannot be ignored that French interests included the opportunity to expand its influence in the Americas, as well as the opportunity to challenge the Monroe Doctrine, declared by the United States in 1823, which determined that South America was necessary. Staying away from European intervention. A war is now beginning beneath this breeding ground.

March to Puebla: General Forey to San Agustín del Palmar camp

The beginning of the war. France believed that there was no room for doubt about the outcome of the contest. His better-equipped and more numerous forces advanced into Mexico to capture the capital. So, on May 5, 1862, French troops under the command of General Charles de Lorencez encountered Mexican forces led by General Ignacio Zaragoza in the city of Puebla.

However, one of the events that will be remembered forever took place. Although the French army was considered one of the strongest armies in the world at the time, the Mexican army, composed mostly of poorly armed peasants, would accomplish something surprising.

Battle of Puebla. As we said, General Ignacio Zaragoza was at the head of the army. Despite having fewer troops (and little equipment), Mexican forces took advantage of Puebla’s natural defenses, including the hilltop forts of Guadalupe and Loreto, which made it difficult for the enemy to advance.

Not only this. They benefited from their knowledge of the terrain and the high morale of their soldiers. Zaragoza organized an effective defense, and the French, underestimating the abilities of the Mexicans, made tactical errors when trying to attack the forts frontally. French troops under the command of General Charles de Lorencez suffered heavy losses and were forced to retreat due to harsh weather conditions and unexpected resistance.

Reactions. The Battle of Puebla was not only a significant military victory, but also a major military victory. It was a battle that accompanied Napoleon for the rest of his life, so it was believed to be a simple victory. It also became a symbol of resistance and pride for Mexico at the expense of Almighty France. This victory (temporarily) halted the French advance and gave the Mexicans cause for celebration.

The consequences of the war. Although the end of what happened in Puebla remains forever in the records of history, the French managed to capture Mexico City in 1863 and establish the Second Mexican Empire under the rule of Maximilian of Habsburg. However, it was short lived. In 1867, Juárez’s republican forces, with support from the United States (which was able to intervene after the Civil War), defeated the French and restored the republic.

This historical journey ends here. An event that began with a galloping debt and demonstrated Mexico’s ability to resist external forces. What happened after regaining independence in 1867 has now become a symbol of the struggle for sovereignty.

Image | INAH, William Boone Canovas

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