Northern Gun watched with intense interest as the upstart weapons manufacturer known as Iron Heart Armaments was established by Coalition rogues only to be subsequently re-conquered and absorbed back into the CS. The large ships and aircraft they produced were viewed as a legitimate threat to the Coalition States, a lesson the Trade Council has taken to heart. Long-range bombers, missile ships, nuclear weapons and similar development projects are all prohibited by the Trade Council for fear of pushing the Coalition into reacting with a military response.
Several things come to mind.
1: Just Earlier in the very same book, Iron Heart Armaments is listed as the 13th most advanced technology power in North America, just edging out Wellington Industries and Golden Age Weaponsmiths by a hair, who are considered functionally equal with IHA anyway. If they were conquered by the coalition states, why are they still listed as an independant technological power.
2: rifts Mercenaries says that the coalitions plan involved wiping more than 98% of the population of New Kenora (the city-state where IHA set up their factories), trying only to leave the factories and the Pre-Rifts designs therein intact. Was it such a slaughter, or did they conquer them with less casulties.
3: the entire reason for the conquest is because Iron Heart Armaments was selling Sophisticated, pre-rifts Long Range Nuclear Missiles and platforms, VTOL jet fighters and bombers and river boats all capable of launching long-range nuclear strikes anywhere on the target. One presumes that the reason for the less than 3% survival was because the coalition planned on manufacturing an excuse for a pre-emptive long range nuclear strike on New Kenora to combat the threat that they were the only power in Rifts Not only mass-producing Nukes but selling them to all and sundry. How was this conquest carried out without New Kenora nuking Chi-Town to dust? They had tens of thousands of nukes with enonge range to hit them stockpiled with more every day. How on earth do you conquer the leading mass producer of nuclear weapons on the contient period without being annilated in turn?
The only answer I can think of is that the coalition pre-emptively nuked the heck out of them with something to fool their sensors so they couldn't retaliate until New Kenora went up in mushroom clouds and then salvaged whatever they could, but if that was the case, one would think that would be noted instead of just "They were conquered and re-absorbed". that would explain the casulties listed in rifts mercenaries, but not how there was anything left to conquer. unless re-absorb means "They took a few factories and studied them."