On May 23, a Chercagoan business delegation in Puerto Christo visited the palace of the El Moustache (head of state) to discuss trade. Talks soon veered towards the prospect of Puerto Christo becoming a Chercagoan mandate. After a few hours of negotiation, El Moustache agreed to grant Chercagoan officials the authority to deal with all matters pertaining to Puerto Christo.

Enthusiastic Chercagoan diplomats invited Puerto Christo into the Pacific Exchange (PXE) - a power bloc headed by Herwan (which also reputedly controls Chercago). Other officials then began contacting foreign countries to sign possible free trade pacts.

In Octavton and the rest of the Terra Exortus Exchange (TXE) - an economic union which it co-leads with Hongolia - the news was greeted with outrage and indignation. By the end of the day, El Moustache announced that he changed his mind and renounced Chercagoan mandateship.

However Chercagoan officials argued that because he had given them complete authority over Puerto Christo, El Moustache lacked the authority to renounce the agreement. The statement of defiance infuriated the Principal Councillor of Octavton who essentially declared economic war on the PXE.

Stating that Chercago's overtures to Puerto Christo were an aggressive action, he expelled all members of the PXE, with the exception of Conton and Herwan, from the TXE. The free trade pact between the two exchanges was also cancelled. With respect to the Octavton Community (OC - Octavton's power bloc), the Principal Councillor cancelled all trade links with the PXE, citing Lebrianon's alliance with Puerto Christo. Lebrianon is a member of the OC.

The schism between the PXE and TXE leaves many countries in limbo as they choose whether to honour their commitment to one exchange or the other. In the meantime, the world eagerly awaits Chercago's - and indeed the PXE's - response.