The Treaty of Versailles was a diplomatic agreement signed between Austria and France

Early Modern France

Kingdom of France is the early modern period of French history from the end of the 15th century to the end of the 18th century...

 at Versailles Palace on 1 May 1757 during the Seven Years' War

Seven Years' War

The Seven Years' War was a global military war between 1756 and 1763, involving most of the great powers of the time and affecting Europe, North America, Central America, the West African coast, India, and the Philippines...

. The agreement expanded on the First Treaty of Versailles from the previous year which had established the Franco-Austrian Alliance

Franco-Austrian Alliance

The Franco-Austrian Alliance was a diplomatic and military alliance between France and Austria that was first established in 1756 following the First Treaty of Versailles which lasted for much of the remainder of the century until it was abandoned during the French Revolution.The Alliance had its...

. It is commonly known as the Second Treaty of Versailles in relation to this.

Terms

In the new treaty France agreed to assist Austria in regaining the province of Silesia

Silesia

Silesia is a historical region of Central Europe located mostly in Poland, with smaller parts also in the Czech Republic, and Germany.Silesia is rich in mineral and natural resources, and includes several important industrial areas. Silesia's largest city and historical capital is Wrocław...

 from Prussia

Prussia

Prussia was a German kingdom and historic state originating out of the Duchy of Prussia and the Margraviate of Brandenburg. For centuries, the House of Hohenzollern ruled Prussia, successfully expanding its size by way of an unusually well-organized and effective army. Prussia shaped the history...

 in exchange for Austria ceding the Austrian Netherlands to France at the wars conclusion - the acquisition of which had been a long-term aim of the French state. Financial subsidies paid from France to Austria were continued. This confirmed a long-standing British fear about the depth of the alliance.

In the wake of the treaty, French troops moved to occupy key ports and settlements in the Austrian Netherlands such as Ostend

Ostend

Ostend  is a Belgian city and municipality located in the Flemish province of West Flanders. It comprises the boroughs of Mariakerke , Stene and Zandvoorde, and the city of Ostend proper – the largest on the Belgian coast....

 and Nieuport

Nieuport

Nieuport, later Nieuport-Delage, was a French aeroplane company that primarily built racing aircraft before World War I and fighter aircraft during World War I and between the wars.-Beginnings:...

 – freeing up their Austrian garrisons to move east to attack Prussia. This particularly alarmed the British as it was a long-standing policy to prevent the French moving into the Low Countries. The Treaty thus brought to an end the Barrier

Barrier

A barrier or barricade is a physical structure which blocks or impedes something.Barrier may also refer to:-Physical barriers:* Automatic full barriers, which serve to block roads at railway crossings...

 which had existed for forty years. The French intended to put a Bourbon

House of Bourbon

The House of Bourbon is a European royal house, a branch of the Capetian dynasty . Bourbon kings first ruled Navarre and France in the 16th century. By the 18th century, members of the Bourbon dynasty also held thrones in Spain, Naples, Sicily, and Parma...

 monarch from the Spanish branch of the dynasty, Duke Philip of Parma, on the throne of a new puppet state in the Southern Netherlands

Southern Netherlands

Southern Netherlands were a part of the Low Countries controlled by Spain , Austria and annexed by France...

.

The treaty also served to confirm a planned partition of Prussia that was to take place between Russia, Sweden and Saxony.

Aftermath

The terms were later largely renounced by the subsequent Third Treaty of Versailles, as France and Austria were not able to achieve the swift victory over Prussia they had envisaged (despite the assistance of Russia, Sweden and Saxony) - and France was concerned that the war in Germany was sucking in troops and resources which needed to be directed against Britain and had prompted a financial crisis in Paris.