<P> British engineers discovered the strategic position of Sugar Loaf, and realized that the American withdrawal from Mount Hope gave them access to it . Starting on 2 July, they began clearing and building gun emplacements on top of that height, working carefully to avoid notice by the Americans . They spent several days drawing some of their larger guns up the slope . Burgoyne's objective was to spring the trap only when Riedesel's Germans were in position to cut off the American retreat . </P> <P> On 4 July, the Americans held a quiet celebration with some toasts to commemorate the previous year's Declaration of Independence . That night the British lost their element of surprise when some Indians lit fires on Sugar Loaf, alerting the Americans to their presence there . On the morning of 5 July, St. Clair held a war council in which the decision was made to retreat . Since their position was completely exposed, they delayed departure until nightfall, when their movements would be concealed . In a conversation with one of his quartermasters, St. Clair observed that he could "save his character and lose the army" by holding the fort, or "save the army and lose his character" if he retreated, giving a clear indication of the political reaction he was expecting to his decision . </P> <P> All possible armaments, as well as invalids, camp followers, and supplies were loaded onto a fleet of more than 200 boats that began to move up the lake toward Skenesboro, accompanied by Colonel Pierse Long's regiment . Owing to a shortage of boats, four invalids were left behind, as were the very largest cannons and a variety of supplies--everything from tents to cattle . The rest of the army crossed to Mount Independence and headed down the Hubbardton road, which Riedesel's forces had not yet reached . A handful of men were left at the pontoon bridge with loaded cannons to fire on British attempts to cross it, but they were drunk when the British arrived the next morning . </P> <P> The British occupied the forts without firing a single shot, and detachments from Fraser's and Riedesel's troops set out in pursuit of the retreating Americans on the Hubbardton road, while Burgoyne hurried some of his troops up the lake toward Skenesboro . </P>

Who won the battle of fort ticonderoga 1777