The settlement of 1763, which ended the Seven Years War in Europe and overseas, was in many ways the most important of the eighteenth century. The Peace of Paris established Britain as, with the exception of Spain, the greatest colonial power in the world. She was now clearly dominant in North America and had at least the possibility of dominating much of India. Simultaneously the Treaty of Hubertusburg saw the consolidation of Prussia's position as one of the major powers of Europe, if not yet as a great power in the fullest sense of the term. Her retention of Silesia appeared to many contemporaries the greatest military achievement of the age; and the leadership of Frederick II seemed sufficient to counterbalance many of her material weaknesses.

A long period of peace, however, could hardly be expected, and indeed was not expected by most observers, after 1763. Neither Britain's colonial and maritime predominance over France nor Prussian security against the Habsburgs was as yet beyond challenge. France's pride had been deeply wounded by her failures during the war. Humiliation and anger were little reduced, desire for revenge on Britain little weakened, by the reflection that much of commercial value—most of her West Indian islands and her trading-posts in Africa and India—had been salvaged from the wreck of her overseas empire. Moreover Britain's successes had aroused everywhere in western Europe a real fear that her sea-power might now be used to give her a monopoly of Europe's overseas trade, and of possibilities of overseas expansion.