Augustus II and Vicente I come to an agreement. Mexico agrees to sell its northern, sparsely populated regions. This includes Texas, which had been growing discontent with the Mexican monarchy. In return, America agrees to forgive all Mexican debt from their revolution, as well as $3 million, and Augustus issuing a formal recognition of the House of Guerrero. This was done after the prevailing belief it would help with the legitimacy of the Mexican monarchy, and thus the political stability. Mexico begins to become economically stable, but political stability receives only minor change.
Crown Prince William and Princess Ana welcome their fourth child, Princess Sophia.