July 17, 799 S.C. / 1 N.I.C.: Alliance forces in accordance with the Treaty of Barlat start decommissioning and disassembling Alliance cruisers and carriers. The Merkatz freedom fighter fleet launches a sneak attack on the Imperial flagship, causing many planned decommissioned soldiers and ships to switch sides. Oberstein tricks Lennenkanpt into blaming Yang. Yang is arrested in his home by Alliance soldiers. All of Yang's subordinates notice increased surveillance as a sign of danger. If Yang is executed by the Empire, it would cause a popular uprising in the Alliance. The uprising would thus give the Empire a reason to subjugate the Alliance further. The Alliance government thus considers executing Yang before the Empire, to avoid interference or subjugation
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