1941 - Britain and Germany Ceasefire
POD: 14th of August 1941. A meeting between Franklin D Roosevelt and Winston Churchill aboard HMS Prince of Wales off the coast of Newfoundland. It was at this meeting where Roosevelt compelled Churchill to sign the Atlantic Charter. This charter contained Roosevelt's plans to carve up of the post-war world.
Churchill's response was as follows: (OTL) "Mr. President,' he cried, 'I believe you are trying to do away with the British Empire. Every idea you entertain about the structure of the postwar world demonstrates it. But in spite of that'-- and his forefinger waved --'in spite of that, we know that you constitute our only hope. And' -- his voice sank dramatically -- '{you} know that {we} know it. {You} know that {we} know that without America, the Empire won't stand."
In this POD, Churchill detects a hint of a smug grin from Roosevelt and loses his temper. "Never! We are fighting a war to avoid the very subjugation you intend to inflict upon us. The price you propose is too high. We may go down fighting but we will never surrender, not to Germany not to America."
Roosevelt, believing Britain was desperate, insisted that Churchill had no choice. The Empire was to be dismantled. He reminded Churchill that France had already, fallen suffering nearly half a million casualties in the process.
"We will not give in to blackmail from a so-called friend. Better to fight a declared enemy." With this he stormed out of the meeting. Roosevelt was escorted from the ship.
Eight weeks earlier, on the 14th of May, Hitler's deputy, Rudolf Hess, had secretly flown solo to Scotland and was being held captive in Glasgow. To Churchill, who had repeatedly refused consider any peace plan or even to meet Hess, the peace proposals he carried with him were now looking increasingly attractive.
Hitler proposed a complete cessation of war on the Western Front. German forces would withdraw from most of France except Alsace-Lorraine, with its high proportion of ethnic Germans. Furthermore, he offered to completely withdraw German troops from Belgium, the Netherlands, Norway and Denmark. Also, Hitler proposed to withdraw from Yugoslavia and Greece and German troops would be removed from the Mediterranean area. An agreeable settlement would be arranged in the Mediterranean conflict between Britain and Italy. In return for Germany removing its troops from most of Western Europe and the Mediterranean region, Britain must agree to neutrality regarding Germany's intentions in Eastern Europe.
Hess explained that the arrangements would work for the benefit of both Britain and France, not only in terms of security but also commercially. Germany would take the full production of the Allied war industries until they could be converted to a peacetime basis. Hitler saw England and France as the arsenals of free Europe against Asiatic communism on one side, and rampant aggressive capitalism on the other.
Churchill agreed; Britain was at peace with Germany.
With Britain out of the war, Germany could now turn its full might against the Soviet Union. Stalin fought on bitterly, raging against the Third Reich, but the Germans slowly forced the Red Army back to the Urals after a three-pronged attack on Moscow, Stalingrad and Leningrad. The Soviet Union unconditionally surrendered and agreed to a peace treaty
The terms of the subsequently signed Treaty of Moscow were undeniably harsh to the Soviet Union, but little better could be expected from their racial enemies. All Russian territory West of the Urals would remain in German hands, and Russia would be required to pay reparations for the war. In exchange, Germany would mount no future offensives against Russia, and Hitler agreed to not commit any future atrocities against the captive Russian and Ukrainian people and would allow them to leave Europe.
Thus, the Third Reich had established a massive Empire in Europe.