Final answer:
In 1766, Parliament declared Massachusetts in rebellion and restricted New England's trade in response to American protests. Lord North's Conciliatory Proposition, presented in 1775, aimed to meet American demands but fell short. This sparked further conflict and led to the convening of the Second Continental Congress.
Step-by-step explanation:
In response to the American protests, in 1766 Parliament declared that Massachusetts was in rebellion and restricted New England's trade to only the British Empire. In May 1775, Lord North presented a Conciliatory Proposition which asserted that Parliament would continue legislating for the colonies but imposed taxes to regulate trade. However, these provisions fell short of colonial expectations, leading to the Second Continental Congress convening and ultimately escalating the conflict.