Halifax-Niagara Agreement

The agreement was negotiated and agreed to in order to prevent total war between America and Canada. Great Britain, and by extension the entirety of the Commonwealth of Nations, entered the World War against America. However, Canada wished to find a separate peace agreement.

America had demanded the port of Halifax from Canada, which was the most prominent trade port for Canada. Canada did not wish to cede territory, but relented on releasing the port in exchange for an American withdrawal from the hydroelectric power plant in Niagara. America was hesitant, but agreed, believing this was the best compromise to a full invasion. Both sides commenced with a tactical withdrawal from their respective regions, and only minor fighting occurred.

Canada has had a contentious relationship with America dating back to the War of the North, wherein Canada failed to prevent American expansion west. Knowing that a full war with America was not possible, the Canadian government wished to have a deterrent from any possible American aggression. Therefore, Canada joined the Commonwealth of Nations, believing the combined might of the alliance would discourage a conflict.

When the Battle of Guam occurred, Canada faced a dilemma. King Walter wished to seek a peaceful agreement, and thus reached out using secret telegrams with his cousin, King James. America had plans to invade the port of Halifax as a means of cutting off trade with Great Britain. Canada wished to maintain their electrical grid through the nation, and thus only agreed as a means to control the Niagara Falls power plant.

The agreement itself was not made public for decades after the war, despite many conspiracy theories surrounding it. When it was made public, many Canadian veterans felt betrayed. The popularity of the Canadian monarchy faltered once again.