Benito Juárez wins the Mexican presidential election…

Benito Juárez wins the Mexican presidential election in March 1861, but the war has left the treasury depleted.

Trade is stagnant, and foreign creditors are demanding full repayment of Mexican debts.

Juárez proceeds to declare a moratorium on all foreign debt repayments.

In October 1861, Spain, Britain, and France decide to launch a joint occupation of the Mexican Gulf coast to force repayment.

In December troops from the three nations land at Veracruz and begin deliberations.

Because the representatives of the three nations cannot agree on the means to enforce the collection of the debt, Britain and Spain recall their armies.

The French remain, spurred by dreams of reestablishing an empire in the New World, and, with the support of Mexican conservatives, embark on an occupation of Mexico.