We are all debating how England would find a way to continue the battle through its commonwealth, and set up a gov in exile in Canada had Germany invaded and conquered the UK . IMO I think thats right. However Hitler offered an armistice several times and did bring England to its knees. He obviously thought that a deal was possible. He also approved the plans for Barbarossa at roughly the same time for the following spring. I would think he thought that both the European allies would be out of the picture by then, as he already took Paris and had London on the ropes.
If a deal was worked out would it have been simply for UK to stay out of German affairs and more or less become neutral, or would it have been similar to the French treaty. If a treaty was to be reached would it have allow a partial German occupation of The Island Nation (I would think not). Would such a treaty lead to a split in control of England itself and the Commonwealth. A divided English Rule would have caused chaos in those uncertain times, as many of those countries were actively seeking independence or would have felt betrayed. Even at this darkest hour the US still didn’t give its total support. I think negotiations would have been just a stall tactic by England to catch its breath, but who knows when politics come into play.
What about its fleet. Would the terms have forced ships to return to English ports, or would English admirals have headed straight to the US or other friendly ports like the French did earlier in its confusion.
Just some food for thought.