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Despite the belligerent slogan "54'40 or Fight!" Polk chose to negotiate in 1846 for the Oregon Territory boundaries because:
He was bound by the previous treaties signed with England.
He could not get Southern support for a war.
It was both unrealistic and potentially disastrous to get into simultaneous wars with both England and Mexico.
Beginning a war might get Russia, Spain, and Mexico to ally against the US.
Most settlers in the northern portion of the Oregon Territory considered themselves Russians or English, not Americans.