- Margaret Witwicky dies of pancreatic cancer under hospice care.
Hot Seat joined the Joes.
In 1989 El Jefe chanced his policy on nationalizing North American Banana Monopoly holdings. As a reaction to that M.A.R.S. Iron Grenadiers kidnapped him and took him first into a jungle hideout. A G.I. Joe team tried to rescue him but failed. El Jefe got transfered to the M.A.R.S. Base Camp in Sierra Gordo. M.A.R.S. become the de facto government in the country. Another G.I. Joe team infiltrated the Base Camp but before they could attempt to rescue El Jefe, the Oktober Guard attacked the camp and rescued him. Although both US and USSR were planning to put El Jefe on the head of a (for themselves) friendly government; after a fierce battle against Cobra El Jefe himself choose to accept the support of mercenaries hired by North American Banana Monopoly and led by its official representative Delbert Swinson. Oktober Guard lost all but two of their members during this mission. After that El Jefe and his troops captured remaining October Guard members and the G.I.Joe team.
With the mercenary backup El Jefe and his revolutionaries captured Rio Lindo and stationed at the North American Banana Monopoly headquarters. When Destro allied with Cobra Commander once again, his commander in Sierra Gordo, Voltar, started to use both Iron Grenadiers and Cobra forces to attack El Jefe. Meanwhile, G.I.Joe forces stationed at Sierra Gordo's neighboring country, the Republic of Punta del Mucosa, cleared 20 miles of rain forest in 3 weeks to transport a Thunderclap artillery closer to the border. Both Voltar and G.I. Joe attacked El Jefe on the same day. El Jefe lost most of his forces and the prisoners were rescued by a G.I. Joe team.
After these events El Jefe and Destro met once again an agreement where El Jete became the legitimate president of Sierra Gordo, but hat to report to M.A.R.S. Corporation. El Jete also attended to weapons sales on Cobra Island.
Darklon replaced Voltar as Destro's commander in the country. As one of his first acts, Darklon licensed timber rights of Tucano sacred rain forests to a multi-national mega corporation. With M.A.R.S. and Cobra controlling the country, the remaining major opposition forces formed the Patriotic Coalition of Sierra Gordo Freedom Fighter. Another small opposing force was Tucano Indians led by Anibal.