After the formation of the United Kingdom of England and Wales, peace negotiations with Germany were swiftly initiated. The German Foreign Minister engaged in a week-long discussion with the Prime Minister of the United Kingdom.
In truth, the talks only lasted one day, with the German Foreign Minister, Wacht, outlining demands, and Prime Minister Andrew readily agreeing to them. The lengthy duration was merely a façade, intended to deceive the public.
At the conclusion of the talks, the "German-English Peace Treaty" was signed, stipulating that Britain would surrender to Germany, assuming full responsibility for its defeat. The United Kingdom, as the successor state to Britain, would also bear its share of the blame. Over the next decade, the United Kingdom was required to pay five hundred billion marks in reparations to Germany, while transferring all of Britain's overseas colonies to German control. German forces would be allowed to station troops in the United Kingdom to help maintain internal security, with the British government covering half of the costs for these stationed troops. The British Army would be limited to a force of no more than one hundred thousand, with no navy or air force permitted. A coast guard could be established, tasked with combating smuggling and conducting maritime rescues, but its ships would be restricted to a maximum displacement of five thousand tons. All unfinished warships previously under construction in Britain were to be handed over to the German Empire.
Subsequently, the United Kingdom of England and Wales joined the Allies, becoming a subordinate of Germany.
Under Germany's machinations, the once mighty British Empire had been utterly dismantled. Even though King George V and Churchill, along with others, had fled to Canada with hopes of resurgence, such aspirations now seemed nearly impossible. The remnants of the British Empire, now reconstituted into three new nations, had effectively become Germany's vassals—nay, its lackeys. In this new order, Germany not only fortified its defensive positions along the eastern Atlantic but also amassed a pool of cannon fodder. Should the United States launch an attack, these three nations would serve as the first line of defense, buying Germany valuable time to mobilize and strike back. Should Germany decide to invade the Americas, these nations would similarly serve as vanguards, offering a multitude of strategic advantages.
In Toronto, Canada's largest city and the makeshift capital after the royal family and government relocated, King George V was livid.
"Damn those Germans! They have torn the British Empire into three separate nations. The Irish and the Scots have betrayed us! Had we known, we should have treated them far less kindly all these years!" King George V raged, his face contorted with fury upon hearing the news of Britain's collapse.
Though Britain had never treated the Irish and Scots well, that did little to stop George from presenting them as victims now. He was no fool, of course; he understood that the Irish and Scots, having gained their independence, would never accept British rule again, even if they were to defeat Germany. Their desire for freedom would make such an outcome nearly impossible.
"And Arthur—how could he, a son of Her Majesty the Queen, a noble member of the royal family, betray the British Empire and ally with the Germans? I'll have him stripped of his royal title!" George V bellowed, his anger now fully directed at his own kin. Though Arthur was his uncle, all George felt now was contempt.
Prime Minister Churchill, ever silent, was unsurprised by Germany's harsh measures. He had expected Germany to take severe action against Britain, but he had not anticipated such ruthless decisiveness. This was clearly an effort to annihilate any hope of Britain's resurgence.
Still, Churchill had to admire Germany's effectiveness. Once the British Empire had been split into three nations, reuniting them would be no easy feat. Even if military force were employed, the resulting tensions and divisions would make any effort to reconcile deeply problematic.
As for Prince Arthur, Churchill refrained from comment. Everyone had their own self-interest. For Arthur, the opportunity to become a king—even a puppet king—was a rare stroke of fortune. England was a constitutional monarchy, with little power vested in the monarch. To be crowned, even if only as a figurehead, at the age of sixty-five, was a prize Arthur would likely cherish for the rest of his life.
"Your Majesty, the Germans have truly shown their cruelty. Their actions are clearly intended to sever any hope of Britain's resurgence. However, at present, we have no way to challenge them. We must focus on defeating Germany and solving these problems later," Churchill said calmly.
George V nodded grimly. Despite his bitter resentment, he understood Churchill's point. At the moment, venting frustration was all they could do—there were no other viable options.
"Prime Minister, I understand. As you said, we must defeat Germany first and reclaim our homeland. Only then will we have the power to address these issues. If we fail to defeat Germany, all else is moot. So defeating Germany is our paramount concern," George V said resolutely.
"Rest assured, Your Majesty. With your full support, we shall overcome these challenges. The British Empire will not fall into oblivion. I swear, in my lifetime, we will return to our homeland!" Churchill vowed.
With the king's full backing, many problems would become easier to resolve—most notably, the financial troubles that had long plagued them. The royal family's vast wealth, when brought to bear, could swiftly solve these issues. They could expand munitions factories and shipyards, equipping the British military with the tools necessary to rebuild a powerful army and navy, ready to confront Germany once more.
Though the British military had suffered substantial losses, Churchill was confident that with enough funding, the forces would soon be restored to full strength.