The Compact is the only shield we have against the Terran sword, for we had incurred its wrath a thousand times over - Algan Diplomat
The Beneficial Compact, more commonly called the Tripartite or (previously) the Compact of United Defense, was formerly an intergovernmental strategic alliance between three different alien nations, the Algan Republic, Rixian Galactic Directorate and Faraxian Union. At the height of their power, they are considered to be the major power of the sector of their space, as well the bitter political, economic and military rival of their neighbor, the Greater Terran Union.
History
Origins
The compact had its origins in the early days of galactic politics, at the time where GTU and other respective star-nations began exploring the galaxy, laying stakes and claim unto whenever valuable star system at their vicinity. Much of the seeds of rivalry between GTU and the future Compact could be traced further back during the contact between the expansionist GTU and the equally expansionist Algan Republic. The ensuing territorial claims along their border eventually led to the souring of relation between both sides, which further exacerbated by the ambitious Algan politicians using the Terran issue for their own political interest, as well by the Terran propaganda network.
However, it wasn't until the contact established with the Rixian Galactic Directorate and the United Clans of Skiron that the foundation of Compact (as well its resulting conflict) were laid down, beginning with the formation of Algan-Rixian Alliance that solidified its position as then the foremost military power of the sector of their space. Tension began to flared up as the GTU and UCS formed a mutual defense pact with each other, as the Algan Republic, seeking to win a political point back home, decide to back the territorial claims of the Rixians and the Faraxians at the expanse of the Skiron, leading to the Great Skiron War (or the First Terran-Compact War), forcing the GTU to honor its commitment in the pact and deploy their fleet.
Nevertheless, despite multiple major tactical victory earned by the GTU along the Terran Front, the Terran states were militarily unable to break through the Compact's territories to aid the increasingly beleaguered Skiron ally, thus handing over the overall strategic victory firmly into the hand of the Compact's member states, and the GTU-Skiron coalition were forced to sign the humiliating Treaty of Alga over the victorious powers, with the Skiron's territory greatly reduced, the GTU-Skiron coalition dismantled and, in an act of arrogance that will change the history of the Compact and GTU, the Terran banner are thrown right in front of the attending High Marshal to be stomped by the marching soldier and subsequently burned to 'confirm the superiority of the Tripartite nations'
By the time the orgy of victory celebration were slowly receding, it become clear to the eyes of the Compact's leadership that, rather than ending the threat over their nations, they simply being replaced by the worst threat of their very existence and sovereignty. With the Greater Terran Union quickly recovered from their post-war recession, it quickly rose as a major power of the galaxy far to quick for the Compact to cope. And thus, exactly 3 Algan years (or 3.7 Earth years) after the war, the Compact evolved from a military pact into a quasi-federal interstellar alliance, in hope to countering the wrath of the increasingly powerful GTU.
Downfall
By the 26th century, the compact was nothing more but a shadow of its past. With the Union of Nimerium had been firmly established as an GTU puppet state and the legitimate government of Polenian people, the fate of Algan Republic are effectively sealed. The Faraxian Union as a state is effectively crippled by the perpetual economic depression, while the still-stable Rixians are forced to shoulder much of the burden in keeping the fledgling alliance alive. But it was to late, as in the Final War against the Compact, its members were defeated by the legions of Terran military, its own combined forces are now unable to mount any meaningful resistance against Terra, let alone achieving parity against their technologically-superior foe.
At the Treaty of London, the leaders of the Beneficial Compact had to sign the humiliating treaty that effectively ended the compact. Many Terran journalists compared it to the Treaty of Versailles, wich would only breed animosity rather than unity.
By the end of the war, all three defeated nations are forced to sign the humiliating Treaty of London, effectively stripping away the independence of Algan Republic and Faraxian Union in a single stroke. The Rixian Galactic Directorate were granted the Special Region title, with any semblance of its sovereignty exist in name only. As a symbolic act of their defeat, the very banner of the Tripartite nations are brought in front to the attending Marshals, military officers and the citizens of the GTU before being stomped by the marching Union's guard of honor as a way to 'return the long overdue favor', effectively ending the existence of the Beneficial Compact.
Resurgence
The Compact might be dead in an official form, but many of the loyalist rebels within the GTU puppet states remain loyal to the idea of a new Compact that would unite all of the former members in a strong bond to crush the humanity's hegemony. Aleady the Algan Workers Revolutionary Faction (AWRF), a rebel faction ironically inspired by the old humanity's communist ideal, declared in a hijacked transmission that the a new Workers Compact would be formed if everyone rose up against Terra. This dream would not be realized as the Department of Justice and Order put a task force on the location and extermination of this fringe group, and the Compact remain as it were in the eyes of the galaxy; a revolutionary irredentism ideals and a mere pipe dream of a defeated species.