Resolving the Breton Crisis
The conflict over Brittany was resolved through diplomatic means:
- England and France signed the Treaty of Etaples in 1492.
- The Breton Crisis was considered a success for Henry VII's foreign policy.
- Brittany was eventually absorbed into the French state in 1532.
Highlight: The diplomatic resolution of the Breton Crisis demonstrated Henry VII's skill in balancing military action with negotiation.
Encouraging Trade and Exploration
Henry VII took several steps to boost England's trade and exploration:
- He sought to break up the Hanseatic League, which dominated trade in the Netherlands.
- The Navigation Act of 1485-86 encouraged the use of English ships for carrying goods.
- An act passed in 1489 limited the export of English wool.
- The Intercursus Magnus of 1496 allowed English merchants greater trading rights.
Example: By the end of Henry's reign, the export of raw wool was 30% lower than in 1485, while cloth exports to Europe increased by 60% by 1509.
Henry also focused on developing trade with the New World and improving relations with Italian states:
- In 1490, a treaty was signed allowing English wool to be imported to Pisa.
- Venice, which dominated Mediterranean trade, became a target for English commercial expansion.
Vocabulary: Intercursus Magnus: A significant trade agreement that improved commercial relations between England and the Low Countries.








