- When the Navy's reputation was restored
- October 1797
- Admiral Lord Duncan = North Sea Fleet commander
- NSF encountered Dutch fleet of similar size
- Duncan's ships smashed enemy lines - captured 11 battleships and 3 frigates
- This gave the British public a boost in morale.
However, Britain's outlook still looked quite bad:
- Continuous threat of French invasion
- Austria made peace with France in 1797 - Britain had no major ally in Europe
- Large French Army and fleet were assembled at Toulon ready to sail and no one knew where to.
British gov had to choose; send ships back to Mediterranean (to blockade fleet at Toulon) which would leave the Channel Fleet without enough ships to fight off an invasion.
Nelson went to the Mediterranean with 3 SOTL and 3 frigates to discover intentions of the Toulon Fleet
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