"Franklin earned his reputation as a master politician in 1767, with the Plan of Confederation. Bypassing Parliament, he negotiated the agreement directly with representatives of King George III, and it was subsequently ratified by the colonies themselves, creating the American Confederation. Under the plan, the Confederation undertook the responsibilities of its own defense, taxation, and administration of unsettled areas. In exchange, it guaranteed the King a personal income of ten percent of the quitrents paid in newly-settled areas, with a minimum of ten thousand pounds a year, free of oversight.
"Parliament, of course, objected to what it saw as a usurpation of its powers by the colonial assemblies, but found its legislative efforts stymied by King George III's refusal of Royal Assent. For a brief time, resentment flared, with some even calling for a second Glorious Revolution to re-establish the perrogatives of Parliament. However, a general sentiment was that it didn't matter how the colonies financed their own defense, as long as they did so, and that the matter was not serious enough to risk open conflict.
"Ultimately, of course, the Confederation was found to be too weak to be fully effective, and Paliamentary interference in internal trade was increasingly resented. In 1793, the Philadelphia Convention wrote the Constitution of the United Kingdom of America, which was then ratified by the Confederation Council and the colonial assemblies. The Royal Assent, however, was reserved under pressure from Parliament. It was finally granted after the Compromise of '96, under which the United Kingdom of America assumed a portion of the British national debt and explicitly acknowledged the exclusive right of Parliament to regulate American trade with foreign nations and with non-American colonies. In exchange, Parliament explicitly recognized the powers of the American Assembly, most particularly its exclusive rights to regulate trade in America and to tax Americans.