During the revolution the British used Detroit as a rallying point from which they sent out raiding parties to attack the Americans. In response, American soldier George Rogers Clark led troops into the Illinois country and captured three British posts. His successes led the British commandant at Fort Michilimackinac to move his defenses to Mackinac Island, where it was called simply Fort Mackinac. At one point in the war Spain, which had joined the French and the Americans against the British, sent a raiding party that occupied Fort Saint Joseph, near Niles, and briefly raised the Spanish flag.
By 1782 the British were ready to make peace. Under the Treaty of Paris that ended the revolution in 1783, American and British negotiators agreed that the boundary between the United States and Canada would be a line drawn through the middle of each of the Great Lakes and their connecting rivers. Isle Royale, in Lake Superior, was specifically included within the United States, but the ownership of the islands in the Detroit and Saint Marys rivers was not determined until almost 50 years later.
Although the British ceded present-day Michigan to the United States, they continued to occupy Detroit and Fort Mackinac. They had little confidence that the new nation would be strong enough to endure and wished to maintain their profitable fur trade.
British officials encouraged Native Americans who fought against further white settlement in the region. In 1794 the Americans gained control over much of the Ohio area after an army led by General Anthony Wayne defeated Native American forces at the Battle of Fallen Timbers, near present-day Toledo, Ohio. That year the British agreed to withdraw from their northwest outposts, under a treaty negotiated by American statesman John Jay and known as Jay’s Treaty. The flag of the United States was raised over Detroit on July 11, 1796, and a few weeks later an American force took over Fort Mackinac. "Michigan" © Emmanuel BUCHOT, Encarta, Wikipedia
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