Britain's decision to retain Canada was the result of different strategic priorities. On the one hand, there was a need to appease the French, who defeat in war notwithstanding continued to present a major threat to British interests given their demographic advantage. This implied giving up either Canada or the French Caribbean islands. Ultimately, the decision was taken to forfeit the French sugar islands even though they were far more economically significant than the North American French colonies. This was in part because annexing the French Antilles would have been a blow to national pride that the French Monarchy would have been unable to accept, thus hampering the prospect of a rapid and mutually beneficial peace settlement. But more importantly, the retention of Canada was motivated by the argument that removing the French presence from North America would reinforce the security of Britain's Empire in the region.
