The Amsterdam merchants become heavily involved in the trade in naval stores with France after the French declare war on Britain.

The French need these supplies for their naval construction, but are prevented from obtaining those themselves, due to the blockade of the Royal Navy (France being the weaker naval power in the conflict).

The Dutch are privileged by a concession obtained after their victory in the Second Anglo-Dutch War, known as the principle of "free ship, free goods" which had been enshrined in the Anglo-Dutch Commercial Treaty of 1668 (reconfirmed in the Treaty of Westminster (1674)).

This early formulation of the principle of Freedom of Navigation exempts all but narrowly defined "contraband" goods, carried in Dutch ships, from confiscation by the British prize courts, in wars in which the Dutch remain neutral.

According to the treaty naval stores (including ship's timbers, masts, spars, canvas, tar, rope, and pitch) are not contraband and the Dutch therefore are free to continue their trade with France in these goods.

Because of the still-important role of the Dutch in the European carrying trade this opens up a large loophole in the British embargo.

The British have therefore unilaterally declared naval stores to be contraband and enforce their embargo by arresting Dutch (and other neutral) ships on the high seas.

This leads to strong protests by the affected Dutch merchants, who demand institution of convoys escorted by the Dutch navy, to protect them against the Royal Navy and British privateers.

According to customary international law, such convoys are (and still are) exempt from the right of Visit and Search by belligerents.

Initially the stadtholder had managed to prevent this, but strong diplomatic pressure by France, that selectively applies economic sanctions to Dutch cities supporting the stadtholder in this policy, had forced his hand in November 1779.

The States General now order him to provide the escorts and the first convoy, under command of rear-admiral Lodewijk van Bylandt, sails in December 1779.

This leads to the humiliating Affair of Fielding and Bylandt on December 31, 1779, which enrages Dutch public opinion and further undermines the position of the stadtholder.