Spring – King Henry II and Philip II (Augustus) meet at Le Mans, with Archbishop Josias (or Joscius) in attendance. Both kings agree to peace terms, and to contribute to a joint Crusade. It is decided to raise a new tax to pay for the expedition. This tax, known as the Saladin Tithe, is imposed on the people of England and France to raise funds for the Third Crusade.
November – Richard of Poitou, son of Henry II, allies himself with Philip II and pays him homage. He promises to concede his rights to both Normandy and Anjou. Henry is overpowered by Richard's supporters, who chase him from Le Mans to Angers. They force him to accept peace by conceding to all demands, including the recognition of Richard as his successor.[1]
The Cutting of the Elm: A meeting of Henry II and Philip II in the field at Gisors, in Normandy. It marks the Franco-Norman peace negotiations, following the Fall of Jerusalem (see 1187).
Levant
Spring – Siege of Tyre: Muslim forces under Saladin withdraw from Tyre after a 1½-month siege. For the Crusaders, the city-port becomes a strategic rallying point for the Christian revival during the Third Crusade.
May 14 – Saladin begins a campaign and marches north but finds Tripoli too strong to be besieged. He decides to take other Crusader fortifications and signs an 8-month truce with Prince Bohemond III of Antioch.
May – Saladin besieges the Hospitaller fortress of Krak des Chevaliers, in Syria. Seeing that the castle is too well defended, instead he decides to march on the Castle of Margat, which he also fails to capture.[2]
July – Saladin marches through the Buqaia, and occupies Jabala and Lattakieh. From Lattakieh he turns inland and, after a few days of fierce fighting, takes Sahyun Castle (called Castle of Saladin) on July 29.[3]
Spring – Henry II institutes legal reforms that give the Crown more control over the administration of justice. He orders Newgate Prison be built in London.[4]