Iberian Union (Treaty of Friendship, Commerce, and Navigation)

The Iberian Union was formed in the wake of the Spanish-Portuguese War of 1915 in which the Spanish successfully ended the Portguese Revolution by driving the Republicans from the mainland and off into the Azores where they became protected by the United States. The Spanish, instead of withdawing from Portugal declared a new Iberian Union on December 20, 1915 and the signing of the Treaty of Lisbon with the Protuguese Republicans (represented now within the United States) which officially created the Iberian Union on the same day as the treaty.

Alfonso XIII's son, Alfonso, died when he contracted influenza and died suddenly. His next son, Jaime, ascended to the throne on April 14, 1927 when his father died from throat cancer. He became King Jaime IV on the same day at the age of 19.

As King he continued to claim the throne of France as well as Spain, but that did not get him far with the French. He did though make one of the greatest moves of his career, he bought the peninsula and city of Gibraltar from the British for 6,594,195,402 OTL present day US dollars and made the city, with its central position close to both Spain and Portugal, as the capital of the Iberian Union.

When he made the capital he gave the option for all British citizens of the city to leave to the Isle of Great Britain for a only 10 British pounds. The vast majority opted to leave back to the isle.

King Jaime IV seperated Gibraltar from both Portugal and Spain by making the small piece of land into the Kingdom of Gibraltar.