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The greatest threat to X-COM is not the aliens themselves; rather, it is the whims of the funding council. While Elerium and Alien Artefacts are critical, X-COM cannot continue to operate without the approval of the funding council. The aliens realize this and will attempt to sign non-aggression pacts with the member nations. The aliens will offer the country superior alien technology, and knowledge. Sometimes they will also attempt to threaten the country's leaders into submission. In any case, in exchange for all of these gifts, they ask only one thing: Stop funding X-COM. The loss of revenue by such pacts must be avoided at all costs, for without funding, X-COM cannot hope to continue the fight. It is suspected the aliens have no intent of following up on their end of the bargain once X-COM has been erased from existence, and it is known they would aggressively assault any nations that double-cross them.

In conclusion: If a country signs a pact with the aliens, X-COM loses all funding from them for the remainder of the war.

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