Though doubtless not to the various Neo-Stalwart cells looking to make life Hell for the North and anyone who makes themselves even the slightest bit friendly to the United States - heck, I wouldn't put it past The Snake to have arranged for the establishment of a Die Hard network that would continue to bleed the US dry even after an overwhelming defeat (in fact I would be surprised if Clarence Potter weren't entirely aware of this and, were this the case, I would be ASTONISHED if he did not trade on this knowledge to save his skin after Philadelphia).
I haven't settled on a name for this Southern Fried Werewolf, but I like "Moccasin" with its ophidian connotations and relation to footwear (they're not only going to poison Billy's victory, they're going to boot the Greenbacks out!) or "Blue Moon" (derived from "Blue Moon of Kentucky" but also a subtle nod to Werwolf - I actually rather like this as a codename for the Operation intended to bring about the Plebiscites in Houston, Kentucky & Sequoyah between the Wars) and possibly even "Sidewinder" (although the latter may have a little too blatant a "Die Hard Terrorist!" ring to it).
Clarence Potter is going to play a huge role in the reconstruction of the South, either be dealing with die-hard ex-Confederates who might oppose the occupation in the South, or using his knowledge to help take down neo-Freedomites or Stalwarts who might make things hard on the South. I'm not sure, the Snake seemed to be pretty sure of himself during the war, but he might've had a plan in place just in case the South fell. There won't be a General Lee telling Southern troops to lay down their arms and go on living, there will be bloodshed on both sides for decades to come. The Snake could have named the operation "Swamp Fox" after
Francis Marion, a South Carolinian who fought the British and is considered the father of guerilla warfare.
There's some risk of that to be sure, but the Canadians will probably be far less disruptive if they have at least some skin in the game as compared to being frozen out of the political system entirely (which leaves them with no option but rebellion.) And the U.S. does have some experience with setting up new states out of their conquered territories in a manner that concentrates political power in the hands of the pro-U.S. residents. (The Democrats were able to essentially make Kentucky and Houston safe Democrat states for a whole generation after the FGW, and there's no reason the U.S. couldn't follow a comparable practice in Canada.)
Canadian statehood will also make continued U.S. rule in the north much more palatable to the American people. Pushing "Equality" in the South while oppressing the Canadians is bound to cause some serious cognitive dissonance for the American public. Giving the Canadians statehood solves that problem since the Canadians are now (at least theoretically) equal with Americans.
And Canadian statehood will also be a big boast to the U.S. in any Cold War with Germany and/or Japan since once Canadian statehood is granted, the U.S. can freely criticize the German and Japanese colonial empires without looking like hypocrites.
That's very true, but the Canadians will still probably see it as a foreign oppressor instead of a natural institution. The US does have experience with that, but the issue would be finding Canadians who would be supportive of the US;
all Canadians suffered under the occupation, and while there would be some who would profit from it, most Canadians would try and resist a cultivated pro-American elite.
I agree, pushing "Equality" in the South while maintaining the Occupation in Canada is a major cognitive dissonance. But I'm not sure statehood will come that quick. Houston and Kentucky were quickly absorbed, Canada was placed under occupation and had that maintained for a generation under the strictest of terms. The legal system in place held no justice for Canadians, whereas (from what we know) the legal system afforded rights to Houstonians and Kentuckians. Even if Canadians become American citizens, and the provinces become states, they're very likely
not going to be equal to Americans. They'll still be seen as Canadians, as people who fought the Americans three times, rebelled twice, helped the CSA last longer in a war where the Confederacy killed millions of blacks. There's going to be an immense social stigma against them