The British proposal caused an uproar among the high ranks of the German Federal Government. Despite the substantial growth in overall national strength with the acquisition of the Rhineland region, which compensated for the shortage in heavy industry, the "Comedic Empire" had seen considerable improvements.
Unfortunately, the German Federation Empire was not a unified nation after all, and the issue of the confederate states within the federation uniting against the central government remained unresolved.
Without an overwhelming advantage in the Kingdom of Hanover, George I was not a ruler of grand vision and bold strategy, so the problem was shelved for the time being.
(Note: George I of the German Federation Empire, George V of the Kingdom of Hanover)
The German Federation Empire, unable to achieve internal integration, was naturally far behind the Prusso Federation. Personally, George I had no interest in the British "snake swallowing an elephant" plan.