Although an important economic crossroads—one of the three principal "gateway" worlds between the FWL and the Lyran Alliance—Giausar avoided military action in the early stages of the Civil War. The planet's principal defenders were the Fourth Cruels Lancers RCT, a unit formed from a hybrid of Lyran and FedSuns traditions. With many of the unit's soldiers sharing the heritage of both states, the unit did not want to be drawn into the Civil War. The Fourth's commander. Leutnant-General Andrew Giggins, trod a path of armed neutrality, placing the defense of the border world above the squabble between the Steiner-Davion siblings.

Maintaining this neutrality required a mix of diplomacy and bloody-mindedness, with General Giggins playing of the demands of Duke William Freiburg and those of Richard Steiner, the Archon's cousin and commander of the Cavanaugh Theater. The general managed this balancing act until March 3064 when, to the surprise of many, he declared his unit for Prince Victor and ordered it to prepare for combat.

His reasons for doing so were unclear. Some analysts suggested he sought to curry favor with Prince Victor, known to be at large in Bolan Province, while others believe he knew Loyalists units would soon attack his world, heeding the Archon's call to eliminate the security risk posed by neutral units. The Fourth Crucis placed the blame squarely on General of the Armies Nondi Steiner, whom they allege made threats against Giggins' family to force compliance. After the war, no record was found of such a threat but much was destroyed in the battles that wracked the capital and such a communiqué could easily have been lost.

Giggins' preparedness served the unit well when the Second Donegal Guards arrived in-system scarcely a week later. Their pro-Katherine commander, Delmar Voss, operated with the authority of Theater Commander, a close political ally, and announced his intentions to dislodge the "mutineers" as he called the Fourth Lancers, from their positions. With his command smaller and lighter than the Donegal Guard, Giggins knew he couldn't stand up to the Donegal unit, who had rebuilt their strength after clashes with forces of the Free Worlds League the previous year, in the open land around the capital.

Instead, Giggins abandoned New Munich and withdrew across Adelaide to the foothills of the Cooper Range, establishing his base of operations in the appropriately named mining town of Hunter's Folly. Over the next few months, the Lancers staged a war of maneuver against their opponents, utilizing the dedicated recon aircraft of the Fifth Baxley Aerial Recon wing to determine when to fade before the Guard's thrusts and to strike back where their opponents were weakest. Lancer units struck from the cover of Adelaide's dense forests then staged feigned retreats to lure enemy units out of position.

To the credit of the Second Donegal and their commander, the Loyalist forces rarely fell for such ruses. Instead staging their own ambushes §nd sudden strikes. With a lull in the late fall that coincided with the planetary Qktoberfest, the conflict between the two units continued at a low ebh tor the rest of the year, with neither general wishing to risk his forces on a massive confrontation. To some extent, both sides had what they wanted—the Loyalists controlled the vital trade hub and its commerce with the FWL while the Lancers kept the Second Guard pinned down and retained a strong defensive presence and Giggins dared <to hope that both Glausar and his troops would be spared the horrors of the Civil War reported from elsewhere. Little did he know how wrong he was.

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