The Bahamas, Jamaica, and Grenada represent but a minuscule fraction of the vast overseas empire of the British Empire—merely peripheral territories when compared to the core colonies like India. Churchill was confident that if the Americans consented to exchange these three colonies for the battleships, there would be little domestic opposition in Britain.
After contemplating, Bryan and Secretary Daniels informed Churchill, "Your Excellency, I must report to the President. Such a significant matter requires his decision!"
Churchill nodded, "I understand, for I too must consult my government. However, I firmly believe that as long as both parties demonstrate sincerity, there should be no insurmountable issues!"
"Very well, Your Excellency. Here's to a fruitful collaboration," Bryan replied.
Although Bryan aspired to acquire more or superior colonies from the British, he recognized that despite their current crisis, the British were not easily coerced. They had always held their colonies in high esteem. The mere fact that the British were willing to negotiate the transfer of territories for battleships marked a considerable breakthrough.
After leaving the hotel, Bryan and Secretary Daniels hastened to the White House to report the outcome of the negotiations to President Woodrow Wilson.
Wilson was quite pleased with the prospect of selling those battleships for a staggering sum of $170 million, undoubtedly a significant windfall for the Republic. However, he was somewhat dissatisfied with the British proposal to use colonies as payment. While the locations of the Bahamas, Jamaica, and Grenada were advantageous, their sizes were too small.
"I am, in principle, agreeable to the British using colonies as currency for those battleships. However, merely trading the Bahamas, Jamaica, and Grenada for such a substantial number of vessels is insufficient. Inform the British that they ought to include Trinidad and Tobago, as well as Antigua and Barbuda," President Wilson stated.
Such an arrangement would effectively allow America to acquire all British colonies in the Caribbean, granting the United States significant leverage in that region. These islands could serve as strategic launch points for further expansion into South America.
"Mr. President, adding two more colonies may prove unacceptable to the British," Bryan furrowed his brow.
"Currently, the British are in need of our assistance; even if they harbor discontent, they should not refuse our requests. After all, no other nation can provide them with such substantial support. Moreover, should they lose the war, these colonies will fall to the Germans. That would pose a grave threat to our Republic, and we must strive to prevent such a scenario," Wilson asserted.
"Yes, Mr. President. If the Germans were to seize these colonies, it would greatly disadvantage us. However, I propose a strategy: let's negotiate with the British, promising to return Trinidad and Tobago, as well as Antigua and Barbuda, should they defeat the Germans in the war. If they fail, those territories would naturally revert to us," Secretary Daniels suggested.
"That is indeed a commendable approach. Mr. President, even if the British procure battleships from us and subsequently ally with the French and Italians to defeat the Germans, it would be an arduous task. Thus, those two colonies would ultimately belong to us," Bryan remarked.
President Wilson nodded, "Then let us proceed with that plan!"
Meanwhile, Churchill was also in contact with his government. Acquiring battleships at such an exorbitant price required domestic approval, and transferring colonies necessitated authorization. Without it, his efforts would be futile.
Upon learning of the Americans' demand for an astonishing $170 million, Prime Minister Asquith was enraged. The Americans were clearly treating them like a cash cow! Such a sum could have funded the construction of a more formidable Royal Navy if the British had built the ships themselves.
Yet Asquith understood that Britain needed to secure the purchase of those battleships, rather than the Americans forcing the sale. Regardless of how harsh the terms might be, they had no choice but to acquiesce. Otherwise, Churchill's plans would collapse, signifying that Britain had thoroughly lost the war, with no chance of recovery. Consequently, Britain would face utter defeat, losing everything to the Germans.
Regarding the exchange of colonies for battleships, Prime Minister Asquith was in agreement, and most high-ranking officials in the British Cabinet did not object. After all, while colonies were significant, ensuring victory in the war was paramount. Losing could result in far greater costs.
Thus, after venting his anger, Asquith instructed Churchill to concede to the Americans' demands.
However, upon learning of the new requirements put forth by the Americans, Churchill was equally displeased. Yet, with the Americans taking a firm stance, he had no option but to accept their conditions after consulting with his government.
Subsequently, a secret agreement was reached between Britain and America, wherein the British would transfer the Bahamas, Jamaica, Grenada, Trinidad and Tobago, and Antigua and Barbuda, valued at $170 million, in exchange for 12 battleships, 5 battlecruisers, 20 light cruisers, and 50 destroyers. Additionally, the British would share technology for the 381 mm naval gun and the new steam turbine.
These ships would be transported back to Britain by a contingent of sailors recruited domestically and from Canada. The American government would maintain confidentiality regarding this transaction until the British returned the fleet to their homeland. To prevent leaks, the Americans required the British to depart with the ships within one month.