The Compromise of 1850 addressed the issue of slavery in the territories acquired from Mexico by allowing California to enter the Union as a free state while organizing the rest of the Mexican cession into New Mexico and Utah territories with the principle of popular sovereignty. This meant that the settlers in those territories could decide for themselves whether to permit slavery. Additionally, the compromise included a stricter Fugitive Slave Act, which required the return of escaped slaves, appeasing Southern interests. Overall, it aimed to balance the power between slave and free states and reduce sectional tensions.
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