Section 1
Britain's Victory Creates New Problems
Key Idea
After winning the French and Indian War, Great Britain gained vast new lands in North America. However, the war was very expensive and left the British government with a large debt to pay. This financial problem changed the relationship between Britain and its American colonies.
To manage its new territory and avoid conflict with Native Americans, Britain issued the Proclamation of 1763. This order blocked colonists from settling west of the Appalachian Mountains. Britain also decided the colonies must help pay for the war, which set the stage for new taxes.