war was ruinous to both countries; and, on
condition that Philip henceforth undertook not to allow any enemies of
the English government to reside in his dominions, a good understanding
was reached, and the _Magnus Intercursus_, which re-established
something like freedom of trade between the countries, was duly signed
in February, 1496. The treaty was solemnly renewed in 1501, but shortly
afterwards fresh difficulties arose concerning Yorkist refugees, and a
stoppage of trade was once more threatened. At this juncture a storm
drove Philip and Juana, who had set sail in January, 1506, for Spain, to
take refuge in an English harbour. For three months they were hospitably
entertained by Henry, but he did not fail to take advantage of the
situation to negotiate three treaties with his unwilling guest: (1) a
treaty of alliance, (2) a treaty of marriage with Philip's sister, the
Archduchess Margaret, already at the age of 25 a widow for the second
time, (3) a revision of the treaty of commerce of 1496, named from its
unfavourable conditions, _Malus Intercursus_. The marriage treaty came
to nothing through the absolute refusal of Margaret to accept the hand
of the English king.

Philip and Juana left England for Spain, April 23, to assume the
government of the three kingdoms, Castile, Leon and Granada, which Juana
had inherited from her mother. Owing to his wife's mental incapacity
Philip in her name exercised all the powers of sovereignty, but his
reign was very short, for he was suddenly taken ill and died at Burgos,
September 25, 1506. His hapless wife, after the birth of a posthumous
child, sank into a state of hopeless insanity and passed the rest of her
long life in confinement. Charles, the heir to so vast an inheritance,
was but six years old. The representatives of the provinces, assembled
at Mechlin (October 18), offered the regency of the Burgundian dominions
to the Emperor Maximilian; he in his turn nominated his daughter,
Margaret, to be regent in his place and guardian of his grandson during
Charles' minority, and she with the assent of the States-General took
the oath on her installation as _Mambour_ or Governor-General of the
Netherlands, March, 1507. Margaret was but 27 years of age, and for
twenty-four years she continued to administer the affairs of the
Netherlands with singular discretion, firmness and Statesmanlike
ability. The superintendence and training of the young archduke could
have been placed in n