In 1988, the counter-revolution were faced with a battle on two fronts. An officer in the Sierra Gordan army, General Villavaca, gained the support of the army and many of the Sierra Gordans and began fighting to establish his own government. He gained the backing of a large corporation, the North American Banana Monopoly. The NABM was willing to finance Villavaca if he let them share in nation's export profits. The Joes were again caught in the middle, but Villavaca was killed and his fight soon ended.

The battle between the provisional government and the counter-revolution continued until El Jefe was captured by Voltar and a force of Iron Grenadiers -- now allied with Cobra. A small group of Joes was sent in to slip in undercover and rescue El Jefe. Before they coudl do so, the Soviets' October Guard arrived with guns blazing and saved the rebel leader, hoping to have him side with the Soviet Union. They were surprised to find that after years of fighting, the revolutionary leader gave up on his idealistic struggle and decided he wanted to overthrow the government so that he could rule Sierra Gordo himself. Soon, the October Guard was fighting alongside the counter-revolutionaries against the Iron Grenadiers. After a long battle in which all but two members of the October Guard sacrificed their lives, the NABM made a deal with El Jefe to finance his war for control of the nation's export business. After months more of fighting, the Iron Grenadier's Darklon took command of their forces in Sierra Gordo and made a new deal with El Jefe to make him the nation's new president. Though El Jefe had given in to his own greed, rebels continued to fight Cobra and the Iron Grenadiers. For the next several years El Jefe gained power and lost it, as Sierra Gordo's history of warfare continued. In 1994, Cobra's forces were scattered, and by then had lost any control of Sierra Gordo. Today, even without Cobra, the country remains unstable. (GI 54-56, 69-71, 92, 101-107; SM 26)