North holds the rather dubious distinction of being the first Prime Minister of Britain, or indeed anywhere else in the world, to be forced out of office by a motion of no confidence, resigning on 20 March 1782 on account of the British defeat at Yorktown the year before. In an attempt to end the war, he proposed the Conciliation Plan, in which he promised that Britain would eliminate all disagreeable acts if the colonies ended the war. The colonies rejected the plan, as their motivation had become independence.

Ironically, in 1782 the war began to turn in Britain's favor again, through naval victories, owing largely to policies adopted by Lord North and the Earl of Sandwich. Britain was able to make a much more favorable peace in 1783 than had appeared likely at the time when North had been ousted.

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