It all began with a Hongolian initiative to expand his domain northwards by using the policy of Responsible Determination to acquire Ichiben and Soozhou on June 5, 2004.

Faced with the prospect of Hongolian expansion, Herwan responded and took both Ichiben and Soozhou under its wing just over a week later. Furthermore, Hongo-Octavian relations deteriorated as the Principal Councillor chastised the Head Honcho over the latter's motives. This led Octavton to acquire Lebrianon as a protectorate on June 13th.

In the meantime, the President of Herwan began organizing his enlarged empire. To facilitate trade and the movement of goods between his realms, he established the Pacific Exchange (PXE) centred in Herwan but which includes Soozhou and Ichiben. On June 17, Conton joined the PXE.

To the west, Hongolia continued its expansionist agenda, leading to speculation that the Head Honcho may spearhead another Forum Resolution to 'liberate' Caseyblanca.

Intrigued by his country joining the PXE, the Chairman of Conton decided to pursue a protectorate of his own. On June 21, the Chairman managed to get a hold of the President of Jabourgh, who agreed to cede control of his country to Conton.

Back in Hongolia, the GX and the Head Honcho had agreed to transfer control of West El-Hussaq (otherwise known as Free El-Hussaq) to Hongolia on June 22. However, the GX stressed that monies derived from the West El-Hussaqi account would be used for non-military purposes.

Shortly thereafter, the Head Honcho sold the southern portion of West El-Hussaq to Marcusburg for one billion altoes, thereby connecting the Adonf and Stochastion. The move is sure to raise heads around the Mapp, as this marks the formal end of any possible territorial concilliation between El-Hussaq and the GX.