Cinco de Mayo has its roots in the French occupation of Mexico, which took place in the aftermath of the Mexican–American War of 1846–48 and the 1858–61 Reform War. The Reform War was a civil war and it pitted Liberals (who believed in separation of church and state and freedom of religion) against the Conservatives (who favored a tight bond between the Roman Catholic Church and the Mexican State). These wars left the Mexican Treasury nearly bankrupt. On July 17, 1861, Mexican President Benito Juárez issued a moratorium in which all foreign debt payments would be suspended for two years. In response, France, Britain, and Spain sent naval forces to Veracruz to demand reimbursement. Britain and Spain negotiated with Mexico and withdrew, but France, at the time ruled by Napoleon III, decided to use the opportunity to establish a Latin empire in Mexico that would favor French interests, the Second Mexican Empire.