<P> The release of the dispatches produced exactly the response Adams feared . Federalists called for war, and Democratic - Republicans were left without an effective argument against them, having miscalculated the reason for Adams' secrecy . Congress authorized the acquisition of twelve frigates, and made other appropriations to increase military readiness . Despite calls for a formal war declaration, Adams steadfastly refused to ask Congress for one . On July 7, 1798, Congress annulled the 1778 Treaty of Alliance, and two days later authorized attacks on French warships . </P> <P> Federalists used the dispatches to question the loyalty of pro-French Democratic - Republicans; this attitude contributed to the passage of the Alien and Sedition Acts, restricting the movements and actions of foreigners, and limiting speech critical of the government . Federalists were otherwise divided on the question of war, and the Democratic - Republicans painted hawkish Federalists as warmongers seeking to undermine the republic by military means . </P> <P> Elbridge Gerry was placed in a difficult position upon his return to the United States . Federalists, spurred by John Marshall's accounts of their disagreements, criticized him for abetting the breakdown of the negotiations . These bitterly harsh and partisan comments turned Gerry against the Federalists, and he eventually ended up joining with the Democratic - Republicans in 1800 . </P> <P> When news reached France of the publication of the dispatches and the ensuing hostile reaction, the response was one of fury . Talleyrand was called to the Directory to account for his role in the affair . He denied all association with the informal negotiators, and enlisted the assistance of Gerry in exposing the agents whose names had been redacted, a charade Gerry agreed to participate in . In exchange Talleyrand confirmed privately to Gerry that the agents were in fact in his employ, and that he was, contrary to statements made to the Directory, interested in pursuing reconciliation . President Adams later wrote that Talleyrand's confession to Gerry was significant in his decision to continue efforts to maintain peace . Gerry, in his private report on the affair to Adams in 1799, claimed credit for maintaining the peace, and for influencing significant changes in French policy that lessened the hostilities and eventually brought a peace treaty . </P>

How did the xyz affair impact adams foreign policy