First it was the United Provinces of Central America, a poor attempt to unite 6 regional identities under the rule of Guatemalan aristocrats. Then, it was the Federal Republic, the first step toward the federal system that Central America needed. And now, it is the Central American Federation, a loose coalition of independent republics bound together for mutual defense and the benefits of free trade.
POD: 1837 - The cholera outbreak of OTL was avoided thanks to increased rainfall and a few random landslides that cause the collapse of crucial village wells. The conservatives were unable to use the outbreak as a way to attack President Morazon's liberal government and gain less support among the uneducated. None the less, the civil war continues.
1838 - Nicaragua declared its independence from the Federal Republic as a conservative stronghold, but the liberal city of Leon continued to fight against the conservative government.
1839 - Morazon's army successful defeated the conservative army of Guatemalan General Rafael Carrera and ended his march to Guatemala City. Liberals in the rest of the country started to push back indigenous supporters of the conservatives, but many provinces still sought independence.
1840 - After defeating the conservatives, it was decided that the Federal Republic would be dissolved and a new union would be formed to fit the needs of the Central American states. At the Convention of Ampala, rules for the new union were established.
-It would be called the "Central American Federation".
The capital would be located permanently in San Salvador.
The region of Verapaz would be separated from the state of Guatemala as punishment for the city's support of the conservatives during the civil war.
-Each republic would follow laws agreed upon by the federal government, but laws not specifically mentioned or prohibited were left to the individual republics to decide and enforce.
-There would be no tariffs between member republics and all republics would use the Central American Peso as the common currency.
-All member republics were bound by a "mutual defense clause" to treat an attack on one of the members as an attack on all members.
-If one republic attempted to separate from the federation, it was the duty of the others to force it back in.
1841-48 - The Republic of Yucatan declared its independence from Mexico along with multiple other separatist states, including Texas and Rio Bravo. Yucatan immediately formed an alliance with Texas against Mexico. After a series of Mexican invasions, Yucatan entered into negotiations with the Federation to gain membership and benefit from the "mutual defense clause". At first, some Central Americans were skeptical about the risk of war with Mexico, but when Mexican troops moved into northern Chiapas ready to take back the Soconusco region from Los Altos, the Federation stood ready to defend itself. After failing to negotiate a merger with the rebel forces in Tabasco, Yucatan applied for membership again and was accepted. Mexico immediately declared war on the Federation and invaded Yucatan and Los Altos. The war also renewed with Texas with the United States of America adding its own support to annex Alta California. By 1848, Central American, Texan, and American troops were marching down the streets of Mexico city. The treaty of Guadalupe Hidalgo established the terms of the Mexican defeat.
-Alta California went to the USA.
-Nuevo Mexico, Chihuahua, Duango, and Rio Bravo went to Texas.
-Tabasco went to Yucatan.
-Chiapas went to Los Altos.
*Other random notes that don't have dates
-Verapaz gained possession of British Honduras by making a number of promises. British citizens in Verapaz would be held under British law. Belice would receive regional autonomy. Verapaz would not challenge Britain's claim to the Mosquito Coast.
-Costa de los Mosquitos joined the Federation as a result of the San Juan Canal. In exchange for construction rights, the Mosquito Coast was granted independence and Federation membership. The USA had to agree not to interfere in the internal affairs of any Central American member state and pay a hefty sum.
-When a border dispute between Costa Rica and Colombia could not be solved with diplomacy, the Federation reacted by supply local Panamanian troops in the region with guns, ammunition, and food. Within the year, the Veragua region had gained indepedence and Costa Rican troops were stationed in the disputed territory. In exchange for a guarantee that Central America would not attempt wrest the rest of Panama from Colombia, Colombia recognized Veraguan independence. Soon after, war torn Veragua joined the Federation to slowly recovery its scarred agricultural economy.