There are many who view us as a puppet state of the Galactic Empire, allow me to put your fears to rest, we are not a puppet state, we still maintain our democracy as a republic ruled by a senate, however we have a good deal with the Galactic Empire, in which they defend us, but they allow us to remain an independent nation. The people still rule this nation!
—Governor William Crest attempting to end huge public speculation that his government is a mere puppet state
The Earth Empire was a puppet state of the Galactic Empire located on the planet Earth that was ruled by Governor William Crest and a senate made up purely of Imperial loyalists. Earth was considered a backwater planet by the Empire, so rather than spend precious resources ruling it directly, they decided to create several puppet state made up of Imperial loyalists to rule Earth on their behalf, allowing them to focus on many other more important regions of the galaxy. The Empire kept some territories for itself, such as the Yuktan Protectorate, though most of these outside of military territories were primarily governed by native puppet regimes.
Governor William Crest, well known by his Confederate nicknames of "Bloody Crest" and the "Butcher of Valley City", was both the appointed head of state and head of government of the state, he was selected for his fervent anti-Confederate and pro-Imperial views, William Crest had committed atrocities against the Confederacy during the previous Earth Civil War, the most infamous of which being the Burning of Valley City.
William Crest is a fool and a coward, he fled from battle to save his own skin. A bloodthirsty knave is all that he is!
—Elizabeth Zarkan to Advisor Colhen Robbill, on William Crest
Helping him run the state was the Imperial Senate, which was made up of Imperial loyalist senators hand-picked by the Galactic Empire to run in elections, thus maintaining a veneer of democracy and self-determination in order to keep the people of Earth happy, in reality, however, each senate was selected by top Imperial commanders, and those deemed "unfit for senatorial service", i.e. ex-Confederates, anti-Imperials, anti-Crest people, by the Empire were forbidden to run in elections.
Don't believe the lies of us being a free, independent democracy! The reality is that we are a puppet state of the Galactic Empire! The Empire dictates everything to us! They even hand-pick our senators and those who are permitted to run in elections, all of the Earth Empire's elections are a sham!
—A member of the Earth Liberty Front attempting to reveal the truth about the Earth Empire's sham elections to the people
The Earth Empire shared Aeropica with another Imperial puppet state - that of the Imperial Kingdom of Zarkania under Elizabeth Zarkan to the west. The Galactic Empire made a deliberate choice to keep the Zarkanian realm separate from Crest, largely out of respect for her former ruler - Jane Zarkan. The two officially maintained a pact, though in reality hated and distrusted each other, both aspiring to be the primary world power of Earth under the Galactic Empire. In 14 BBY the Empire made the decision of breaking off the western states of the Earth Empire and forming the Central Aeropican Territories to serve as a buffer state between the Earth Empire and Zarkania. Crest protested it, but there was little he could do, for the Empire effectively told him to be silent and accept it.
The people of Earth suffered greatly under the Earth Empire, especially as time went on the Galactic Empire began facing increasing defeat against the Rebel Alliance, William Crest was considered "mentally unstable" and paranoid, which only grew as the Galactic Empire began to be pushed back by the Rebels, he began to view the people of Earth as traitors who were plotting to overthrow him, and he responded by committing huge atrocities, even genocide, according some. Between the founding of the Earth Empire in 18 BBY and its fall in 4 ABY it was estimated that Crest's policies killed about 50 million people of Earth, many of these were citizens of the former Confederacy, leading Confederates to view him as genocidal tyrant who was trying to wipe their people out.
On top of the repressive policies, Crest also made de facto slaves of the people of Earth, ex-Confederates, in particular, to toil in his factories. Aside from the enslavement of his people , Crest's regime was also responsible for torture and execution against civilians, infamously making use of "The Burning", a method of slow burning using a blaster set to the lowest power setting.
Particularly damaging was the Great Earth Famine of 3 ABY, which both began and flourished as a direct result of Crest's policies of destroying farmland of farmers considered "uncooperative with the nation", as well as the confiscation of food of a great many people, especially in the states which made up the former C.S.E, this one incident alone killed about 30 million of Earth's people. Not only did Crest punish the people with man-made disasters, he even had his troops round up tens of thousands at a time and execute them for the slightest anti-government thought, he enslaved hundreds of thousands of his own people to work to death in labour camps in appalling conditions, which killed further millions.
As a result of Crest's heavy-handed and oppressive policies, as well as the Earth Empire's abolishing of the planetary governments and ruling them directly, rebellions and uprisings were common place during the relatively brief time of the puppet state, most rebellions were crushed by superior firepower of Earth's Imperial military, some notable rebellions were the First Earth Rebellion, Wilcot's Rebellion, the Laralian Separatist War and the Legionary Insurrections.
In 4 ABY the Imperial forces stationed on Earth retreated from the planet after having learnt of the results of the Battle of Endor. Following this began the Liberation of Earth, as the forces of the Imperial Kingdom of Zarkania swept eastwards through the devastated Earth Empire.
Many Easterners rose up during this invasion and formed the Eastern Armies of Liberation, they were so ruined and despondent that they didn't care what plans Elizabeth Zarkan had for them, for it would have been better than their present situation, even if they were to become her slaves. The EAL provided support for the Imperial and Royal Armed Forces, such as the during the Great Revolution of Williamstown, in which many of the Earth Empire's own troops joined the revolutionaries.
Governor William Crest was captured by units of the EAL, who wanted to lynch him, however they were prevented by the Western forces. William Crest went on trial and was publicly hung for his many crimes against humanity.
We consign wicked William Crest to the fire, and his damnable government with him! That piece of paper stapled to his chest is the Earth Imperial Constitution, a worthless scrap of paper whose only purpose was to give his tyrannical and hellish state the semblance of legitimacy! It will burn with him! Whilst his corpse and his legacy may burn his spirit shall spend an eternity freezing in the cold darkness of Hel!
—A speech given by Empress Elizabeth Zarkan just prior to the Burning of William Crest
After the execution of William Crest the States of his puppet regime were occupied by Zarkania and turned into temporary governorates during the Great Reconstruction. Elizabeth Zarkan was hailed as a heroine and a liberator, whilst Crest was viewed as an insane, murderous tyrant who was guilty of genocide. After the Union was reorganized it owed a debt of gratitude to Elizabeth, something many Confederates were quick to point out.