As the Republic of China and its province of Shaanxi, lead by Governor Yan Zizhong, called a ceasefire as tensions flared along the border there also began reconciliation negotiations to resolve the situation regarding Governor Zizhong's continued attempts to undermine Peking's influence in Shaanxi while simultaneously promising his loyalty is to the Republic. Zizhong lacked the military strength and political will to start a conflict with Peking as it sat prepared and ready for war, especially after so many fled the province. Peking, however, was also hesitant to once more have to fight in the west as it did in Tsingkan. It was terrified of losing the Manchurian war and ending up like so many other Republican powers did, and it was also desperate to maintain its authority in Shaanxi legitimately.

The Republic's continued great success in the Manchurian War however chipped away at the resolve of the great Governor as well as the others in Shaanxi. This would lead to the Governor recusing some demands in a moment of impasse that would quickly end the negotiations as a compromise was found. The Governor would resign from his position to allow a successor to be voted on. The Governor would be assured the successor would get approved or disproved by him personally, to secure his legacy. Lastly, the use of the YLTPP would be discontinued indefinitely and instead replaced by proper federal NRA regiments for garrison, police, and electoral work.