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There is no reason or need to connect the two kindles to each other. You can't transfer anything that way, and the old kindle isn't necessary to set up the new one.
Just charge the new kindle before use. Turn it on, and it will prompt you to connect to your home wifi network, then to register the kindle using your email address and amazon password.After these steps are complete, all your prior purchases will automatically load to the new kindle over wifi. You don't need the old kindle for this process at all.