In 1825, George Canning, Minister of Foreign Affairs, held talks with Governor Pelly of the HBC about a possible agreement with the United States. Pelly felt that a border along the Snake River and the Columbia River was beneficial to the United Kingdom and its business.  Canning, who contacted U.S. Secretary of State Rufus King in April 1826, sought agreement on the Oregon dispute. Gallatin was appointed ambassador to the United Kingdom, and in July 1826 Foreign Minister Henry Clay was commissioned to offer a division of the Pacific Northwest along the 49th parallel with the British.  In a letter to Prime Minister Lord Liverpool in 1826, Canning outlined the possibilities of trade with the Qing Empire if a division of the Pacific Northwest with the Americans were to take place. He found the recognition of U.S. property rights in Astoria “absolutely unjustified” despite the continued use of the NWC and, later, HBC.  This Canning diplomatic courtesy felt weakened by the United Kingdom`s territorial claims. A border along the Columbia River would be “a huge direct sexual relationship between China and what may be if we don`t abandon them, giving their unlimited facilities to the N.W.
Coast of America.”  As in Texas, public opinion was divided on the Oregon Country. While the Texas territory would have added proslavery representation in Congress, all potential states formed from Oregon Country would be free states. As a result, the Northerners were the main proponents of acquiring as much of Oregon Country as possible. The territory, which became the American Northwest, was annexed to the nation in a somewhat unusual way, by comparison. First, it went through a phase where the two main non-native complainants, the United Kingdom and the United States, agreed to share it indefinitely – so-called common occupation. Second, the national ownership of the region was not resolved by war or purchase, but by contract, with both parties negotiating a border dispute. The Dispute on the Pacific Coast, resolved in 1846, was oversted by a dispute on the Atlantic coast that was settled in 1842 between Maine and Canada. These two negotiations are part of the process in which Britain and the United States reached a larger agreement after the conflicts of the American Revolution and the War of 1812. In addition to territorial disputes with Spain and Mexico over the southwest, the fate of oregon territory was one of the most important diplomatic issues of the first half of the 19th century.
In the summer of 1845, the Polk administration renewed the proposal to divide Oregon along the 49th parallel with the Pacific Ocean. On July 12, U.S. Secretary of State James Buchanan offered the British all the desired ports on the part of Vancouver Island south of that line, although navigation rights to the Columbia River were not included. As this proposal was less than the Tyler administration`s previous offer, Pakenham refused the offer without first going to London.  Offended, Polk officially withdrew the proposal on August 30, 1845 and interrupted negotiations. Aberdeen condemned Pakenham for the diplomatic error and tried to renew the dialogue. But at the time Polk was wary of British intentions and was under increasing political pressure not to compromise. He refused to resume negotiations.
 The Oregon Treaty of 1846 established the border between British North America and the United States along the 49th parallel to the Strait of Georgia, where the maritime border was bent southward to exclude Vancouver Island and the Gulf Islands of the United States.