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When Baldwin died childless in 1162, a year after his mother Melisende, the kingdom passed to his brother Amalric, who renewed the alliance negotiated by Baldwin.
In 1163 the chaotic situation in Egypt led to a refusal to pay tribute to Jerusalem, and requests were sent to Nur ad-Din for assistance ; in response, Amalric invaded, but was turned back when the Egyptians flooded the Nile at Bilbeis.
The Egyptian vizier Shawar again requested help from Nur ad-Din, who sent his general Shirkuh, but Shawar quickly turned against him and allied with Amalric.
Amalric and Shirkuh both besieged Bilbeis in 1164, but both withdrew due to Nur ad-Din's campaigns against Antioch, where Bohemond III of Antioch and Raymond III of Tripoli were defeated at the Battle of Harim.
It seemed likely that Antioch itself would fall to Nur ad-Din, but he withdrew when Emperor Manuel sent a large Byzantine force to the area.
Nur ad-Din sent Shirkuh back to Egypt in 1166, and Shawar again allied with Amalric, who was defeated at the Battle of al-Babein.
Despite the defeat, both sides withdrew, but Shawar remained in control with a crusader garrison in Cairo.
Amalric cemented his alliance with Manuel by marrying Manuel's niece Maria Komnene in 1167, and an embassy led by William of Tyre was sent to Constantinople to negotiate a military expedition, but in 1168 Amalric pillaged Bilbeis without waiting for the naval support promised by Manuel.
Amalric accomplished nothing else, but his actions prompted Shawar to switch sides again and seek help from Shirkuh.
Shawar was promptly assassinated, and when Shirkuh died in 1169, he was succeeded by his nephew Yusuf, better known as Saladin.
That year, Manuel sent a large Byzantine fleet of some 300 ships to assist Amalric, and the town of Damietta was placed under siege.
However, the Byzantine fleet sailed with enough provisions for only three months.
By the time that the crusaders were ready supplies were already running out and the fleet retired.
Each side sought to blame the other for the failure, but both knew that they could not take Egypt without the other's assistance: the alliance was maintained, and plans for another campaign in Egypt were made, which ultimately were to come to naught.

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