Henry VII needed to develop a positive relationship with the major states in Europe if he was to maintain credibility as a king. Henry also needed leaders in Europe to stop pretenders to the throne from congregating in their states and he could only achieve this by developing good diplomatic ties with the likes of France and Spain.
When Henry became king in 1485, he was in no position to adopt an aggressive foreign policy. The War of the Roses had reduced England's manpower and Henry simply did not have the financial resources to embark on a robust foreign policy. He had to concentrate on domestic issues such as establishing himself as a ruler free of any internal threats. As a result of this, Henry could not spend too much time concentrating on foreign policy. It was noted that Henry was more inclined to peace rather than war.
The nearest country to present Henry VII with potential problems was France. England and France had been major rivals since 1066 and had clashed over English-held land in France for many years – the most acrimonious being the Hundred Years War from 1337 to 1453. By 1485, France had nearly become one cohesive state. The semi-independent feudatories that had existed were now by and large absorbed into the state. By the time Henry was victorious at the Battle of Bosworth, France had three times the resources in terms of manpower and revenue. The mere proximity of France made it a natural gathering place for those opposed to the Tudors. One of the first things that Henry did after Bosworth was to sign a one-year's truce with France that was later extended to 1489.
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