The Treaty of Madrid (also known as the Godolphin Treaty) adopted in 1670 was a treaty between England and Spain. The original language of the treaty is Latin. Its complete English title is: "A treaty for the composing of differences, restraining of depredations, and establishing of peace in America, between the crowns of Great Britain and Spain, concluded at Madrid the 8/18 day of July, in the year of our Lord 1670." The treaty was signed and sealed by Gaspar de Bracamonte, count of Peñaranda, and William Godolphin, Envoy Extraordinary of England to Spain.
Under the terms of the treaty, Spain recognized English possessions in the Caribbean Sea: "all those lands, islands, colonies and places whatsoever situated in the West Indies." Spain confirmed England was to hold all territories in the Western Hemisphere that it had already settled; however the treaty did not define what areas were settled. England took formal control of Jamaica and the Cayman Islands after the treaty was signed. Spain also agreed to permit English ships freedom of movement in the Caribbean. Each country agreed to refrain from trading in the other's territory, and both countries agreed to limit trading to their own possessions. England agreed to suppress piracy in the Caribbean.
The treaty did not establish any boundaries. Spain and England only adopted, in article 7, the principle of actual possession; in Northern America "this compact legalized England's ownership as far south as Charleston, and Spain's as far north as Santa Elena Sound, in 32°, 30' north latitude."