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Then in 1579 the privy council decided to arrest both he and his brother, Lord John Hamilton (c. 1535–1604) (afterwards 1st Marquess of Hamilton), to punish them for their past misdeeds; but the brothers escaped to the Kingdom of England, where Elizabeth I of England used them as pawns in the diplomatic game, and later Claud lived for a short time in France.
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Returning to Scotland in 1586 and mixing again in politics, Hamilton sought to reconcile James VI of Scotland with his mother; he was in communication with Philip II of Spain in the interests of Mary and the Roman Catholic religion, and neither the failure of Anthony Babington's plot nor even the defeat of the Spanish Armada put an end to these intrigues.
A Roman Catholic, he was briefly jailed in June 1628 for abetting his servant in an attack on an officer of the Church of Scotland.