King Philip V of Spain had died on 9 July 1746 and his successor, Ferdinand VI, began negotiations with Britain on trade. The British Parliament was amenable: they considered lifting the British embargo on Spain and possibly ceding Gibraltar in return for a trade agreement. However, none was reached before Ferdinand VI died in 1759. The new king, Charles III, was less willing to negotiate with Britain. Instead, he signed a Family Compact alliance with Louis XV of France on 15 August 1761. France was already at war with Britain in the Seven Years' War (1756–63), so Britain responded by declaring war on Spain. In the following two years, the British captured Manila and Havana, the capitals of the Spanish colonies of the Philippines and Cuba, respectively. Again there was no fighting at Gibraltar. The peace Treaty of Paris (1763) that ended the war returned Manila and Havana to Spain, in exchange for Spanish holdings in Florida. The treaty also transferred most of France's colonies in North America to Britain.