In U.C.0096, the conflict dubbed the "Laplace Incident" ended with the dissolution of the Neo Zeon remnant group "Sleeves". Both the Unicorn Gundam and the Banshee were supposedly dismantled. With the original draft of the Universal Century Charter revealed, the existence of Newtypes and their promised rights have become known to the public. One year later, in U.C.0097, the world is largely unchanged despite these revelations. The reappearance of the RX-0 Gundam unit 3 Phenex, "brother" to the Unicorn and Banshee, two years after it disappeared triggers the Federation to launch Operation "Phoenix Hunt" to capture the mobile suit. Minister Monaghan Bakharov of the Republic of Zeon secretly directs a Zeon unit to the same objective through his operative Erica Yugo. Mineva Lao Zabi, the figurehead "princess" of Zeon, calls out Monaghan's ambitions, though she cannot directly intervene.