The Zwerginn attacked the Fallen settlements in the previous months. However with the noble efforts of General Deepcut, Koschei Kai Morlock, Unity and an Unknown Machinist, the Invaders were successfully repelled, a number of prisoners have been taken, and there is a push to establish if there will be any more attacks.
The Fallen and the Union are forming closer ties, a number of substandard and outdated printing presses that are of no use to the fallen, but are still superior to those currently at the disposal of the Union, have been sent to Madison Bourne. This seems to be the beginnings of trade pacts between the 2 colonies that could turn out to be mutually beneficial.
Consider the word 'Unsullied'. Do they seek to imply that physical augmentations are in some way undesirable? Do they claim that their unmodified, inferior bodies are superior to those of Beastmen and Machinists? This is not merely a semantic point - the virtues of Fallen society must be spread, but if our ruling members shun augmentation, those we seek to attract will assume that the benefits of augmentations, be they biological or technological, lower the recipient's worth, when as any observer can see, we are physically superior in every way. Regardless of their devotion to the Fallen ideals, every time an 'Unsullied' introduces him/herself, s/he insults those of us who are the products of the science that formed our society in the first place, that set us apart from the mass of humanity.
The Fallen have started to bring the Xenos into their communities, Orellius Guar has began negotiations with the Kar'Baldi and the Zwerginn ferrymen, it appears that close ties will be formed between the fallen and the Xenos.
The beginings of a postal service to connect the fallen and the Union has begun to develop, although the network isn't quite complete, once it is it will bring the Union and Fallen closer together.
People are trying to solve the beastman sickness.