It means to coexist peacefully with the recipient. Being either a person or representative of a country, group, tribe etc.
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A torch with an olive branch on the left and an oak branch on the right.
The last attempt at peace with the British was the treaty of Paris
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torch,oak leaves and an olive branch
It is true that if the British had accepted the Olive Branch Petition then the Revolutionary War might have been averted. This petition was offered in 1775.