Question is if Western Allies would allow on peace mentioned by Jaeger. Governments of GB and USA had to listen to their population. Would people accept casefire and peace. Would Churchill allow Germans on victory on east? I really doubt. Victory mentioned by Jaeger would made Germany strongest nation into Europe again. And Germany would not have problems on East. More - they have all the sources of USSR.
Churchill was not idiot and would know that in these condition fall of Britain = 10 years.
More realistic is that Allies would still fighting and Germany would surrender. Maybe on better condition but would surrender.