Final answer:
King George III expressed dissatisfaction with the colonists and their desire for independence, leading to Parliament's declaration of rebellion in Massachusetts and restrictions on New England trade. Lord North presented a Conciliatory Proposition that aimed to regulate trade through taxes, but fell short of colonial expectations.
Step-by-step explanation:
King George III expressed his dissatisfaction with the colonists and their desire for independence from Britain. He complained that "blows must be exchanged to determine whether [the American colonies] are to be subject to this country or independent." In response, Parliament declared that Massachusetts was in rebellion and restricted New England from trading with countries outside of the British Empire. Lord North, the Prime Minister, presented a Conciliatory Proposition that affirmed Parliament's intention to continue legislating for the colonies but with taxes imposed to regulate trade. However, these provisions fell short of meeting colonial expectations and led to increased tension between Britain and the American colonies.