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The Seven Years War, known as the French and Indian War in America, arose due to conflicts between France and Britain over territories in North America. Spain was ruled by a Bourbon King, following the War of the Spanish Succession, and was thus allied with France. It was the first truly world war, and was fought in North America, Europe and India. An excellent discussion of the War in America and how it led to the American Revolution is contained in Fred Thompson's Crucible of War. A more detailed description of the War in Europe is contained in the link below.
The major battle in the Americas was the Battle of Quebec in which forces under General Wolfe defeated a French force under the Marquis de Montcalm. Both Wolfe and Montcalm died as a result of injuries received in the battle.
The war ended with the Peace of Paris of 1763 and a number of ancillary treaties. As a result of the treaty, France withdrew from mainland North America. France was given the option of retaining French America (basically Canada) or several islands in the Caribbean. It chose the islands as they were a source of sugar, a major trade item. French Canada was ceded to Great Britain, and Louisiana was ceded to Spain.
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