I sort of like the idea, and in this I might be in a minority of one, of having our island split during the Cold War - one half an American military colony, the other a Soviet puppet. And reunited and given independence in 1990 or 1991. I don't know. Might be a bad idea.
I would go for that if the timeline began before re-unification. I think there would be 'two games in one' which is no bad thing. Something historical definitely.
That would be pretty cool. If we do this, we could use the government Xahar thought of after re-unification.