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The British were fairly generous/lenient territorially when it came to dealing with the United States following the Revolution and after the war of 1812. They reasonably could have held on to or grabbed more territory, but didn't.

However, if they took too much territory they'd face the issue of American settlers moving in and becoming rebellious (like what happened with Americans in Texas).

What is the most territory the British could have taken while avoiding a Texas situation?
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