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The plebiscite of January 7, 1941 was part of the Richmond Agreement entered into by President Al Smith of the United States and President Jake Featherston of the Confederate States. The plebiscite took place in the states of Houston, Kentucky and Sequoyah to determine whether each state should remain in the U.S.A or rejoin the C.S.A. After the plebiscite, Kentucky and Houston voted to rejoin the Confederacy (with Houston also being reabsorbed into Texas). However, Sequoyah (with many new US settlers in the territory) voted to remain an occupied U.S territory.

However, Featherston wanted more territory. For example, he wanted the northern portion of Virginia that had been annexed into West Virginia, a portion of northeastern Arkansas that was annexed into Missouri, and the portion of northwestern Sonora that was annexed into New Mexico. On Featherston's orders, Freedom Party Guards carried out a terrorist attack on a police station in Frankfort and blamed the United States, giving Featherston an excuse to remilitarize the re-admitted areas. These arguments would eventually lead to the beginning of the Second Great War a few months later on June 22.

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