When you reach New Milgan, upgrade your wanzers the go to the military office. Olson explains that your next mission is the recovery of a crashed cargo transport north of town (Notice that you can move around the wanzer in the enemy status screen below with the directional and L/R buttons).

Then head to the crash site when Keith spots a Civilian wanzer in the middle of area, being an easy target for the USN units. Natalie asks him to evacuate.

As you can see, Frederick blatantly ignores you and the USN wanzers reach the area, starting the battle.

Attacker in PAVOT Lv 2 HP 107 (Body 36 Arms 44 Legs 27) FI 8 ST 10 LG 0 AG 43

4 Attackers in CALM Lv 2 HP 94 (Body 24 Arms 38 Legs 32) FI 7 ST 10 LG 0 AG 33

3 Missilers in ZOLA Lv 1 HP 107 (Body 30 Arms 50 Legs 27) FI 17 ST 0 LG 10 AG 43

Commander in ZENITH Lv 2 HP 107 (Body 33 Arms 48 Legs 26) FI 9 ST 12 LG 10 AG 43

Military Commission 1000

Destroyed Enemy Bonus 1970

It takes 2 rounds for the USN to attack Frederick, then he changes his mind and asks for help. Concentrate on helping him because it's pretty much impossible to reach the lost cargo (It's a new type of rocket launcher). Just destroy the PAVOT unit that got the rocket launcher to get and Egret R-Launcher. After destroying the USN units, Frederick joins the unit in his search for good scoops. Now go back for your next mission

Note: If you really hate Frederick, you could let him "die". Why is that? Simply because even if the enemy destroys his unit, he won't die...*Shrugs*.