The harbour was not ideal, eventually requiring the construction of several breakwaters. Despite this Bonavista became one of the most important towns in Newfoundland due to its proximity to the rich fishing and sealing grounds to the north of the peninsula. The Spanish, Portuguese, French and English fished off Cape Bonavista during the 16th century, but the Spanish and Portuguese presence soon declined, leaving the French and English as the dominant powers. Tension between the French and English sometimes resulted in military action, including an unsuccessful attempt in 1704 by the French to burn the town. The French Shore, which had Bonavista as its eastern terminus, was established by the Treaty of Utrecht in 1713. Fishing rights in the area continued to be a source of tension between the French and English.