<P> The revolt led to the War of Reform (December 1857 to January 1861), which grew increasingly bloody as it progressed and polarized the nation's politics . Many Moderates, convinced that the Church's political power had to be curbed, came over to the side of the Liberals . </P> <P> For some time, the Liberals and Conservatives simultaneously administered separate governments, the Conservatives from Mexico City and the Liberals from Veracruz . The war ended with a Liberal victory, and liberal President Benito Juárez moved his administration to Mexico City . </P> <P> In 1862, the country was invaded by France which sought to collect debts that the Juárez government had defaulted on, but the larger purpose was to install a ruler under French control . They chose a member of the Habsburg dynasty, which had ruled Spain and its overseas possessions until 1700 . Archduke Ferdinand Maximilian of Austria was installed as Emperor Maximilian I of Mexico, with support from the Catholic Church, conservative elements of the upper class, and some indigenous communities . Although the French suffered an initial defeat (the Battle of Puebla on May 5, 1862, now commemorated as the Cinco de Mayo holiday), the French eventually defeated the Mexican army and set Maximilian on the throne . The Mexican - French monarchy set up administration in Mexico City, governing from the National Palace . </P> <P> Maximilian's consort was Empress Carlota of Mexico and they chose Chapultepec Castle as their home . The Imperial couple noticed the mistreatment of Mexicans, especially Indians, and wanted to ensure their human rights . By contrast, Napoleon III wanted to exploit the mines in the northwest of the country and to grow cotton . </P>

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