TBntG-2 Chpt 28

=The Bull and the Genie=
==Chapter 28 - Book II - The Ninety-five Theses==
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==Fate of the Capellan Confederation==
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At the end of the Fourth Succession War, Candace Liao had little cause for optimism. The Confederation, when one subtracted conquered worlds and the Police Zone was clearly out of the running as a Great House, now a peer of the Magistracy—and quite possibly not an equal peer. The Free Worlds League had taken worlds from one direction while the might of the Federated Suns lay on their other border.
 
But Candace Liao proved to be that rarity in the nobility of the Inner Sphere— a realist. She discarded the useless title of First Lord, obviously taking the Confederation out of the running for a meaningless title that it could never claim, while making peace with the Federated Suns.
Militarily, she denuded the border with the Suns, in order to strike back at the Free Worlds League and used their betrayal as a way to unify the demoralized Confederation Military and citizenry, while launching an extensive program of economic regeneration, taking advantage of the economic ties both with the former Capellan worlds in the Federated Suns, and those in the police zone. The payment for this was Candace throwing her not inconsiderable weight against any home grown or foreign movements for liberation. 
 
Most of the military forces then confronted the Free World's League. Here they had the advantage—while the Free Worlds League had the larger military, the Capellans only had one hostile border to worry about. (Candace's pragmatic assumption was that if Hanse Davion was willing to pay the price of conquest, they couldn't stop him). Battles on the League Front were brutal, but limited, and resulted in several stinging defeats to the League and the recovery of the Yuminah and Old Kentucky duchies by 3031. The last Capellan worlds would not be restored from the League until the Union of Sovereign States mediated a settlement in 3090.
 
Surprisingly, Candace started reducing the size of the military in 3032, focusing on creating a small number of more effective units, some of them patterned off of Federated Suns and Taurian models, while maintaining the Capellan interest in stealth and ECM—the general goal was accepting the Confederation could not win an all out war with any of its neighbors, to ensure that the cost would be higher than the benefits. The Capellan military got a reputation for being sneaky and good, one joke making the Clan rounds being: "If you do not see them things are bad. If you see them, things are beyond bad, because they decided it does not matter, Quiaff?"
 
Culturally, Candace focused on promoting both pride in local history and the overall culture of the Confederation, including it 's links to nations and cultures on Terra. Cultural shows and festivals became common and the crowning achievement was the agreement with several Terran museums to permit parts of their exhibits to tour the Confederation in 3034. 
 
Although Candace did not abolish the servitor class, a point of some sticking with Taurians and Federated Suns, the laws regarding servitors were changed and liberalized, and by the late 3040s, the servitor caste was officially restricted to individuals with a chronic history of low level crimes or substance abuse. (that remnant was abolished in 3120)
 
Economically, trade with the Federated Suns (both old and the parts that had formally been Capellan), and the Police Zone (and via them, the Concordat), exploded, as Candace provided tax rebates and other incentives, mostly paid for by the reduced military, to companies that wished to invest. In a reflection of Edwards policy, many of these companies were encouraged to establish themselves on worlds near the Free Worlds League border, where a the League attack wouldn't just antagonize Sian—but stockholders with offices in City of Samantha on Taurus, Tharkad, and New Avalon. In addition, a number of marginal worlds were regenerated, and saw population growth during this period.
 
During the Clan conflict, The Confederation Military was too small to directly contribute large forces, but Warrior House and Maskirova special operations teams soon became a regular feature in Clan commander's nightmares, to the point that in some cases, the Clans expended great effort hunting down teams that had come, done their work, and left the world currently being scoured by Clan forces. They played the same role in the eventual suppression of the Black Dragons, working along side the Taurians to secure the leadership for eventual trial. Economically (and in memory of the nation that didn't stab them in the back in the Fourth War), the Confederation provided support for rebuilding in the successor states to the Combine and accepted just over one billion refugees from the Combine during and after the Combine's collapse. 
 
Today, the Confederation consistently scores high on quality of life, life expectancy, education and R&D establishments and is a strong supporter of the USS, contributing forces for peacekeeping and disaster relief at a rate equal to larger nations. It's primary trading partner (by value) is the Federated Suns, followed the Taurian Concordat, and the Free Worlds League, although memories of past conflicts have led to lower than expected trade. 
Extensive investments in education have resulted in the Confederation being a popular destination for Education Abroad programs, and it is not surprising to find University dorms with students hailing from places as diverse as Strana Mechty and New Avalon. 
The Capellan Confederation: Winning by Resigning from the Game. 
Solaris Broadcasting, 3140
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