In 1861, after imprisoning, silencing, exiling, and executing many of his opponents and due to political and economic reasons, Santana signed a pact with the Spanish Crown and reverted the Dominican nation to colonial status, the only Latin American country to do so. His ostensible aim was to protect the nation from another Haitian annexation.[34] But opponents launched the War of the Restoration in 1863, led by a group of men including Santiago Rodríguez and Benito Monción, among others. General Gregorio Luperón distinguished himself at the end of the war. Haitian authorities, fearful of the re-establishment of Spain as colonial power on their border, gave refuge and supplies to Dominican revolutionaries.[34] The United States, then fighting its own Civil War, vigorously protested the Spanish action. After two years of fighting, Spain abandoned the island in 1865.[34]
Political strife again prevailed in the following years; warlords ruled, military revolts were extremely common, and the nation amassed debt. In 1869 it was the turn of Báez to act on his plan of annexing the country to the United States, where President Ulysses S. Grant was supportive. An agreement was made, which included a U.S. a payment of 1.5 million dollars for Dominican debt repayment.[30][17] But the United States Senate refused approval on June 30, 1870,[30] on a vote of 28-28, two-thirds being required.[35][36] One reason for President Grant's support was providing a home where U.S. freedmen could live free of harassment by Southern whites.[37]
Ulises 'Lilís' Heureaux, President of the Republic 1882-84, 1886-99
Báez was toppled in 1874, returned, and was toppled for good in 1878. A new generation was thence in charge, with the passing of Santana (he died in 1864) and Báez from the scene. Relative peace came to the country in the 1880s, which saw the coming to power of General Ulises Heureaux.[38]
"Lilís", as the new president was nicknamed, enjoyed a period of popularity. He was, however, "a consummate dissembler", who put the nation deep into debt while using much of the proceeds for his personal use and to maintain his police state. Heureaux's rule became progressively more despotic and he all the more unpopular.[38][39] In 1899 he was assassinated. However, the relative calm over which he presided allowed improvement in the Dominican economy. The sugar industry was modernized,[40] and the country attracted foreign workers and immigrants, both from the Old World and the New.
From 1902 on, short–lived governments were again the norm, with their power usurped by caudillos in parts of the country. Furthermore, the national government was bankrupt and, unable to pay Heureaux's debts, faced the threat of military intervention by France and other European creditor powers.