I don't know why you keep bringing up breach of contract, it is not relevant to this discussion at all. No, the government did not breach the contract AFAIK, they just decided they didn't like it anymore, and instead of either withdrawing or entering into a negotiation about it, they decided to use threats to try and get their terms at metaphorical gunpoint.
The actual terms of the contract aren't even relevant, this is purely a matter of tort law and whether you can bully someone into a new contact because you woke up one day and decided you didn't like the one you agreed to.
The actual terms of the contract aren't even relevant, this is purely a matter of tort law and whether you can bully someone into a new contact because you woke up one day and decided you didn't like the one you agreed to.