On May 3, 2005, following the successful foundation of a sparkling new capital city in Terra Praeforium, the Chercagoan Interior Ministry announced the construction of 18 new suburbs, following the so-called 'Pacific Formula'. This building strategy, pioneered by the Pacific Exchange (PXE) led by Herwan, entails building a large number of suburbs flanked by multinational corporations.

However never before had any country embarked on building such a large number of suburbs at one time. Daunted by the sheer volume of such an ambitious building plan, diplomatic channels began buzzing.

The news caused an upsurge of anger in Octavton where the finger was immediately pointed at Herwan which is widely suspected of controlling Chercago. Within minutes the Principal Councillor of Octavton, who co-leads the great trading empire the Terra Exortus Exchange (TXE) with Hongolia, expelled Chercago from the TXE and began the paperwork for economically embargoing the country.

Historic anti-Herwanese feeling started to swell across the TXE, threatening the stability of Terra Exortus. An emergency conference between Herwan and the TXE was held in Marcusburg on May 4, leading to formal border arrangements between Chercago and Hongolia, Octavton, and Marcusburg. The TXE readmitted Chercago and dropped the threat of economic sanctions.

In addition, Chercagoan officials later pledged to cut down the number of new suburbs to eight. Interestingly, other PXE members then announced they were building suburbs but not in Terra Praeforium.

Nevertheless, eight new suburbs remains a record-breaking number of new low-density housing in one area at one time. Chercagoan plans may still potentially overwhelm all land claims east of Marcusburg-controlled lands and west of Hongolian territory (See Map).

In the meantime, Chercagoan plans for expansion continue unattenuated in other channels, as the country secured the abdication of Lizealand on May 5.