Carthagistan declares that it is in fact willing to compromise on the Gibraltar and the Atlantic Islands issue.
We maintain our claims to all the Azores, the Madeiras and the Canaries, but will be willing to grant a Marian concession at Gibraltar.
Given the importance of naval bases and stations, and the likelihood of the Union of Nations approving both claims cases, the Marian Empire has the following proposal:
Every Atlantic island west of the line shall pass to the Marian Empire, and everything east to Carthagistan. The net result of this is the Azores and the westernmost Canaries passing to the Marian Empire, guaranteeing a safe route into the Atlantic and down the African coast, while also allowing the Carthagistani people to claim most of the Canaries and Madeira Islands - closer to home and the coastline - for themselves.
On the issue of Gibraltar, the Marian Empire proposed it either be:
A. Transformed into a Carthagistani-Marian condominium, with the local laws and practices agreed on by both parties via consensus.
B. A neutral area, akin to what the Union of Nations is likely to arrange for the Panama and Suez Canals, either under self-government or administered by all UN members.
The former protects both Marian and Carthagistani interests, while the latter helps to ensure the Straits of Gibraltar remain open to commerce regardless of political climate.
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To show it's goodwill despite the tensions, the Marian Empire would also like to offer the following:
An alliance between the Marian Empire and Carthagistan. As our states border eachother and have competing interests, cooperation, rather than competition, would likely yield benefits.
We propose that this alliance merge with the Oceanic Defense Pact, to ensure that our ally Maryland is part of a three-way alliance, meant to protect the Eastern Atlantic coast's integrity. Furthermore, we feel the Oceanic Defense Pact's provisions that free us of obligation to protect them in Maryland proper, but committing us to the defense of all overseas possessions of Maryland, could also be included in this new alliance, preventing a bloody, costly war across the ocean with the United States and Confederate States.
This pact will be kept separate from the Pacific Security Pact, so that the Marian Empire's responsibilities in the Pacific do not collide with Maryland or Carthagistan's interests.
As a concession on our part, being allied would mean that the Marian Empire would support the expansions of both Carthagistan and Maryland's expansions into Africa, and also mediate with lack of bias in the event any border dispute erupts.