Reykjavik, Iceland, the United States of America (American Protectorate)
December 22nd, 1834

Secretary of State James K. Polk looked at the British ambassador in front of him with a neutral expression as he listened to his counterpart's arguments, "And why should we allow Great Britain to maintain an embassy in Columbia?"

"In order to restore relations, of course!" The British Foreign Secretary, George Hamilton-Gordon, exclaimed, "In order to ensure that such a tragedy never occurs again, Britain and the United States must have a proper, diplomatic relationship!"

"I have been explicitly told by the President to allow Britain to maintain only a single, small embassy in the city of New York. Nothing more, nothing less."

"And your nation is refusing to allow a British ambassador to take residence in the nation."

"An envoy is enough to communicate between our two nations."

The two senior diplomats of their respective countries were meeting in the small Icelandic city of Reykjavik. After Britain evacuated from the island in October, the United States re-occupied Iceland and established a heavy naval presence to prepare for further raids on Britain in order to force the island nation to the negotiating tables. However, that wasn't necessary as the British government sued for peace just weeks after the "Iron Coronation" occurred (a quote from the New York Times, claiming that Queen Charlotte's ascension to the throne was met with "iron and steel raining upon London"). After taking some additional time to decide on a location to negotiate the peace treaty, the two sides agreed upon Reykjavik. Despite the fact that it was a city within an American Protectorate, it was right between the United States and Britain. Additionally, America insisted on the location as a show of force to the British delegation, as the metal warships that patrolled near the island served as a constant reminder of America's power to the British delegation.

Now, the two sides were ironing out the finer details of the peace treaty, and unsurprisingly, Britain was trying to gain even the smallest concessions from the treaty. Since the British minister avoided being overbearing or forceful during the negotiations, it was clear to Secretary Polk that the British government was thoroughly whipped and wanted to peace out of this war as soon as possible, quite possibly due to the looming vote of no confidence against the current ruling government. Though, at the same time, Britain was trying to save some face by not caving into every one of America's demands immediately.

But they were, slowly and surely. There was nothing Britain could do about the Sword of Damocles hanging by a thread above its homeland. For the time being, America had graciously ordered the ironclads to hold off on destroying additional targets within Britain. But the American government had made it clear that if the British government dragged on the negotiations, the United States Navy would pay a friendly visit to Britain's shores... again.

"Surely, we can arrange something more suitable for our envoys? Even if you do not want an official British ambassador within your country, you can at least have him in the city of Columbia..." Secretary Hamilton-Gordon argued impassionately. A bead of sweat trickled down his forehead and he wiped it away with a handkerchief.

Secretary Polk offered a wry smile as he listened to his counterpart's tone and expressions. It was clear that the British man was stuck between a rock and a hard place. His government wanted him to gain minor concessions if possible, yet at the same time, wanted him to avoid angering the American delegation. The American diplomat had to admit that the British foreign secretary was doing a fairly decent job considering his circumstances. Even so, Secretary Polk refused to budge an inch on most issues (except the part that concerned the transportation of British troops back to Great Britain).

"If a British envoy in New York City desires to contact the President or me, then he can contact us through a telegram for an appointment and a basic outline of his intended message."

"Ah... Of course, of course. Now then, is there anything more to discuss?"

"Territorial concessions," Secretary Polk replied solemnly, "I assume that you have no objections?"

In order to defang the British Empire and to ensure that an invasion of the American mainland never occurred again, it was necessary for America to have complete control over the Atlantic and the Pacific Oceans. Polk had read about the British Empire of the other world and knew that they managed to expand their power and influence through a series of islands throughout the world for refueling and basing their massive navy. Without those bases, Britain's rise to international prominence would be delayed, or even completely dismantled. In fact, he had read more about the history of the British Empire in the other history more than his own presidency. Well, it didn't matter to him much for the time being; he was only 39 years old and had a long career ahead of him.

The biggest irony about the small snippets he read about his presidency was that he was ironing out a treaty with Britain that consisted of territorial concessions (that included Oregon, even more amusingly) in this world as well.

"My government has no objections over the cessation of the Hawaiian Islands or any of the Caribbean Islands."

"Of course," Secretary Polk almost snorted. It wasn't like Britain could keep those islands if America really wanted them. After all, they were daggers towards the stomach of the United States.

"However, the cessation of Ascension Island, Saint Helena, the Tristan Islands, the Falklands, and South Georgia and the South Sandwich Islands... Are these all necessary? I can understand, Mr. Secretary, that our nation caused... great distress to the United States and the Hawaiian Islands and the Caribbean Islands were used as part of the invasion. However, these other islands are much further away and are necessary for Britain's interests..."

"Britain's "interests" saw part of our nation burnt down to the ground and hundreds of thousands massacred without justification, Mr. Secretary," Polk stated coldly, his usually cool personality heating up quickly by the British diplomat's words, "Britain should be extremely thankful that our government is level-headed enough to not respond to an event with passion and blind rage. However, even our government can hold back the angry populace for so long... especially if Britain refuses to accept our rather lenient peace treaty."

"I wasn't specifically rejecting the demands, good sir!" Secretary Hamilton-Gordon answered quickly, his skin paling at the sudden acidic words Polk spewed out, "What I meant to say was... If we traded these islands away, would it be possible to waive the transportation fees for all our soldiers and to possibly allow America to... retain the Indian troops instead of sending them back to India?"

"I'm afraid that they will still have to return. After all, many of them participated in the invasion and the American public will not allow them to remain. Perhaps we can allow a few to settle in the United States, but unfortunately, most of them will still return to India. As a show of our generosity, we will transport them back with great speed and even take them directly to their home regions..."

+++++

Treaty of Reykjavik
Signed January 20th, 1835 (Approved by the League of American Nations: the United States, Mexico, Haiti [government in exile], Colombia, the Central American Republic, Yucatan, Argentina, and Chile)

"... And let it be known that Great Britain takes full responsibility for the onset of this conflict between the United States and Her Allies, and Great Britain and Her Allies. To amend the once-thriving relationship between the United States and Great Britain, Her Majesty's Government and the Government of President Eliyah Peters agree to the following terms that will be honored upon the signing of this document:

Article 1: Her Britannic Majesty's government agrees to the immediate surrender of British soldiers within the American continents to the nearest authorities of the United States or Her Allies. This surrender shall include any British vessels, both unarmed and armed, to the nearest port authorities of the United States or Her Allies within five nautical miles from the coasts of any territory owned by any member of the League of American Nations. All prisoners of war will be returned to Great Britain after arrangements are made between Her Majesty's Government and the Government of President Peters, with the exception of naval ships, which will remain in the possession of the American Military or Her Allies' militaries.

Article 2: The prisoners of war, captured by the United States and Her Allies, will be returned to Great Britain two months after this treaty signed. Her Majesty's Government agrees to pay additional fees for the release of captured officers and allows the Government of President Peters to prosecute British officers and regulars that were engaged in the heinous crimes that were committed inside the "concentration camps." They will be tried in the High Court of the League of American Nations but Her Majesty's Government will be entitled to select and pay for lawyers for their defense and to select observers to ensure the fairness and transparency of said trials. Such observers shall have diplomatic immunity and shall be subject to the approval of the United States Government and of the League of American Nations, which approval shall not unreasonably be declined. In addition to this, the United States will provide fees to safely and swiftly transport British prisoners of war to Great Britain. 

Article 3: Her Majesty's Government will cede all territories of British North America, the Kingdom of Hawaii, Anguilla, the Turks and Caicos Islands, Montserrat, Saint Christopher, the Virgin Islands, Nevis, the Sint Maarten Islands, Saba, Sint Eustatius, Tobago, Antigua, Grenada, Saint Lucia, Saint Vincent, the Grenadines, Barbuda, Dominica, the Bahamas, Barbados, Saint Pierre and Miquelon, Ascension Island, Saint Helena, and the Tristan Islands to the United States of America, and relinquishes any and all claims to the before-mentioned territories.

Article 4: Her Majesty's Government officially recognizes America's claims over the island of Jamaica and relinquishes all claims to the territory.

Article 5: Her Majesty's Government will cede the Mosquito Coast to the Federal Republic of Central America and relinquishes all claims to the territory.

Article 6: Her Majesty's Government will cede Guiana, Bonaire, Aruba, and Curacao to the Republic of Colombia and relinquishes all claims to the territories.

Article 7: Her Majesty's Government will cede British Honduras to the Federal Republic of Central America and the Republic of Yucatan, and relinquishes all claims to the territory.

Article 8: Her Majesty's Government will cede the Falklands and South Georgia and the South Sandwich Island to the Republic of Argentina and relinquishes all claims to the territories.

Article 9: Singapore will be returned to the United States, with all the damages inflicted upon the city reimbursed by Her Majesty's Government. All British soldiers will withdraw from the city with no actions taken against the native population. The United States will have full control over the Malay Peninsula and Borneo, and Her Majesty's Government will not contest the United States on this matter after the signing of this treaty.

Article 10: Her Majesty's Government will immediately halt any shipment of arms and aid to the Kingdom of Portugal and Brazil after the signing of this treaty.

Article 11: Her Majesty's Government agrees to elevate the United States to "Most Favored Status" in trade after the end of hostilities between Great Britain and the United States.

Article 12: Her Majesty's Government, upon the request of the Government of President Peters, agrees to allow the American government to aid the Irish people in immigrating to the United States, with no additional fees to be given to Her Majesty's Government.

Article 13: This treaty will officially end hostilities between Great Britain and the United States and Her Allies.