What incident is commonly referred to as the XYZ Affair?

The XYZ Affair refers to a diplomatic incident that occurred in the late 1790s involving the United States and France. The situation arose when American diplomats were sent to France to negotiate peace and resolve ongoing issues that had emerged due to French interference with American shipping. However, upon their arrival, the diplomats were approached by three French agents, who demanded bribes before any negotiations could begin.

This incident angered many in the United States and led to an undeclared naval conflict known as the Quasi-War with France. The phrase "XYZ Affair" comes from the use of the letters X, Y, and Z to refer to the French agents in dispatches sent back to the U.S. government, as their names were initially kept secret. The affair highlighted the tensions between the United States and France and reflected broader issues of foreign policy and national sovereignty during a period where the young nation sought to establish itself on the world stage.