Margaret was no sooner invested with the government of the Netherlands than, accompanied by her young nephew, she visited all the towns of Flanders, and promised in the prince's name to preserve the rights and privileges of the seventeen provinces, whose homage and oath of fidelity she received. Mercurin de Gattinare paid homage to Louis XII. in her name for the county of Charollais and the Burgundian territories. The letter in which he tells Margaret of the accomplishment of his mission contains this curious passage: 'J'ai fait vostre hommage entre les mains du roi, et l'ai baisé en vostre lieu, et me répliqua encore de nouveau qu'il eût mieux aimé vous baiser que moi.'
On July 20th, 1507, Margaret convoked the States-General at Malines, and asked them to levy a 'philippus' on each household. This tax was to be employed in paying the army in Gueldres, and in redeeming the prince's mortgaged lands. The States did not welcome this proposal, but voted a subsidy of 200,000 philippus. Charles, who was now seven years old, made his first public speech before the States at Louvain, where Margaret had cleverly brought him to support her claim for the subsidy. Its purport was understood rather from his gestures than the sounding quality of the boyish voice; but at all events, the chronicler adds, the people could not fail to be well pleased. Reassembled at Ghent, the States refused to support the cost of an army of 10,000 infantry and 3000 cavalry, which Margaret judged necessary to guard the country during the prince's minority. They objected that in the present circumstances this levy seemed to them useless; but if the country was really threatened it should be attended to; yet at that very moment Holland and Brabant were attacked by the Duke of Gueldres, aided and abetted by the King of France.
The States' refusal to grant proper subsidies greatly irritated Maximilian. In a remarkable letter he tried to show them that the war with Gueldres was not only of interest to Brabant, as they pretended, but to all the Netherlands, and that all ought to take part in it. He recalls how the princes of the House of Burgundy had laboured from the days of Charles the Bold to reduce the duchy of Gueldres, and the efforts of the French kings to defraud them of their legitimate rights. He complains above all of Louis XII., who had employed every imaginable means to leave the contested country to Charles of Egmont. 'And what is his real aim?' he asks. 'He pretends through the medium of the said country of Gueldres to separate our country from the Holy Empire, and from the House of Burgundy, so as to better hold this country in subjection.'
On September 16th Maximilian wrote to Margaret to acknowledge her letters in which she requested him to come to Flanders in order to conclude a new alliance with England. He has, he says, been prevented from doing so, but begs that King Henry may be amused with false hopes, and kept from concluding an alliance with France and Spain. 'If she would consent to marry the King of England, it might be arranged that she should remain Governess of the Netherlands, and pass three or four months every year in her own country.'
A few days later De Puebla, writing from England to King Ferdinand, informs him that ambassadors have arrived at the English Court from Maximilian and from Flanders, the former to beg King Henry to make war against France, alleging that the French king was usurping his grandson's (Prince Charles's) dominions. The ambassador also broached the subject of the prince's marriage with Princess Mary, King Henry's daughter. The Flemish ambassador, Don Diego de Gueyara, told the king that King Louis had declared war against all the seigniories of Burgundy, and invaded them with an army, excepting Flanders and Artois, which two provinces recognised the sovereignty of France, and the appeals from their tribunals went direct to the Parliament of Paris. The ambassador begged for King Henry's help against France and the Duke of Gueldres. The English king promised to ask the French monarch not to meddle in German affairs, but at the same time he wished to keep friends with France, and so put off the ambassadors with polite and general phrases which meant nothing. De Puebla adds in a postscript: 'The King of England sends six horses and some greyhounds to the Archduchess Margaret, and a letter.'
A few weeks later De Puebla tells King Ferdinand that Margaret had sent a very loving letter to King Henry the previous week, holding out hopes that her father would send a 'great personage' as ambassador to England with full powers to conclude all the treaties which her brother Philip had arranged, and if necessary to grant more favourable conditions. De Puebla states that when he asked King Henry what the treaties were about, the king replied 'they were very good treaties, and very advantageous to himself personally, and also to his kingdom, for, besides his own marriage with the Archduchess Margaret, an alliance had been concluded between the Archduke Charles and his daughter, Princess Mary, and all matters respecting commerce settled according to his wishes.' De Puebla wound up his letter by informing Ferdinand that King Henry was anxious to keep friends with the Emperor Maximilian, and not to break off negotiations with him, at any rate not without first consulting the King of Aragon.
On December 4th Maximilian wrote to Margaret acknowledging her letters and the articles concluded between the Flemish and English ambassadors. He told her that the French king had complained to the Pope, King Ferdinand, and even to the Diet of Constance, that he (Maximilian) had broken his word in marrying Prince Charles to Princess Mary. In order to satisfy his honour the emperor requests that a clause should be inserted in the marriage treaty to the effect that the whole treaty should be null and void, and not even the penalty paid if the King of France declare himself ready, within one year, to marry his daughter Claude to Prince Charles. On the 21st of December 1507 two treaties were drawn up and dated Calais. One, a treaty of alliance between Henry VII., Maximilian and Prince Charles, was practically the same as the former treaty concluded between Henry and the Archduke Philip; and the other, concerning the marriage of the Archduke Charles with the Princess Mary, was between Henry VII., Maximilian, the Archduke Charles and the Archduchess Margaret, but was unsigned. In this treaty the Archduke Charles is to conclude the marriage with the Princess Mary, either in person or by proxy, before the following Easter. He is to contract the marriage by ambassadors sent to England for the purpose within forty days after he has completed his fourteenth year. The King of England is to send Princess Mary to the Archduke Charles within three months after the marriage shall have been contracted per verba de præsenti. The dowry to consist of 250,000 crowns. The Emperor Maximilian, the Archduchess Margaret, Charles de Croy, Henry, Count of Nassau, bind themselves to pay 250,000 crowns to King Henry if the Archduke refuses to contract the marriage. The King of England and his nobles bind themselves to pay an equal sum to Maximilian if Princess Mary refuses to fulfil the agreement. The treaty to be ratified by the contracting parties before the following Feast of Easter.
An interesting account exists of an interview between King Henry's ambassador and the Emperor Maximilian. In it we learn that the emperor had long conferences with his daughter respecting her marriage with King Henry, which had been settled by her brother Philip. In order to persuade Margaret, Maximilian told her that the marriage was necessary for the good of the House of Austria, besides being honourable to her, the King of England being 'such a pattern of all the virtues.' He added that it was also necessary on account of commerce, and in order to secure the Spanish succession, and keep the Duke of Gueldres at bay; without it the King of England might marry into another family and endanger the marriage between Prince Charles and Princess Mary. The emperor told the English ambassador that the Archduchess was fully aware of King Henry's many virtues, and that should she marry again, she would marry no one else but him. But as she has already been three times unfortunate in her marriages, she is much disinclined to make another trial. Besides, she said she believed she should have no children, and that she might thereby displease the King of England. Seeing that he could not prevail on Margaret to change her mind, her father called the Privy Council together, his grandson Charles being present. The question of the marriage was once more discussed, but the Archduchess remained firm in her decision. The ambassador remarks: 'From all this it is clear that the emperor has done all in his power to persuade his daughter to consent to the marriage, and that he can do nothing more.' But in spite of Margaret's absolute refusal to marry Henry, his agents for more than a year pressed her to reconsider her decision. The utmost that could be obtained was to prevail on her to write, from time to time, flattering letters to him in order to secure some advantages for her father.
On January 28th, 1508, Maximilian wrote to Margaret from Bolzano to tell her that 'he is sending Andreas de Burgo to England, and that he has ordered him to see her before he starts. Andreas has some money, but it may not be enough to defray his expenses; he has therefore given him directions to take some money for his own use from the 100,000 gold crowns which the King of England is expected to give.' He also begs her to write a pleasant letter to King Henry.
A few weeks later Maximilian again wrote to Margaret excusing himself for not having sent the ratifications of the treaties with England. He has been so much occupied, he says, with his great undertakings in Italy and Spain, that he has really had no time to attend to that business; but he has now done so.