Within the next two years it became apparent that Terran-Vasudan relations were decaying. Political chill crept into the military, and officer exchange programs tapered off. In the Capellan era, the GTVA had been on the verge of becoming a truly integrated society. The 'frog calls' of Vasudan intercom chatter were becoming a welcome sound on Terran destroyers, and Vasudan society in general had begun a sharp turn away from ritualized, formulaic protocols and towards a more Terran model. These social changes reversed themselves with startling rapidity, born out of growing Terran pessimism and the (ironically reversed) Vasudan perception that the Terrans had become backwards-looking, superstitious, and hidebound.

On the Vasudan side, animosity towards Terrans grew as they continued to devote resources to their return to Sol. The prosperous, cosmopolitan Vasudans of the post-Capella era looked down on the Terran fixation with their homeworld and resented continued Terran xenophobia towards the Vasudans. In Vasudan eyes, the Terrans were petulant, tribal, fractious, immature, overly focused on a return to their planetary womb, and devoid of the kind of racial pride that the Vasudans felt towards their Emperor.

While Vasudan contractors continued to build warships for the Terrans, and Vasudan engineers and tacticians worked closely with Terran friends on the design of a new generation of warships and weapons to counter the Shivan threat, the GTVA military began to segregate. Khonsu II reinstated the Medjai, a close-knit band of military leaders and admirals who reported directly to him. The Medjai began an ambitious restructuring of the Vasudan military in order to create a totally self-sufficient and powerful force capable of power projection, sustained counter-insurgency operations, and node denial. The Terrans, who were still struggling to get their own new warship program off the ground in the face of massive debt, were not pleased to see themselves so thoroughly eclipsed. Terran elements of the General Assembly accused Khonsu II of planning this move even before Capella, citing the Vasudan insistence on developing and deploying their own Setekh AWACS instead of adopting the superior Terran Charybdis.

Joint Terran-Vasudan military exercises continued in a cursory fashion for the next several years, but only in the form of planned responses to Shivan incursion. No counterinsurgency operations in either Terran or Vasudan space were gamed out. Officer exchange programs did not resume, simply because the political will for such a reconciliation did not exist. The Vasudans had found their place amongst the stars, and the Terrans were busy trying to go home.