This story is mentioned in Kanto 47: Reminiscence.

Red and Blue- The Champion

Red and Blue covered their eyes as their strongest Pokémon collided with two powerful Quick Attacks and created an enormous dust cloud. The outcome would determine the winner of the 1997 Indigo League championship. Once the cloud cleared, Jolteon collapsed on the battlefield while Pika was barely standing.

"Jolteon!" Blue desperately shouted.

The official waved this red and green flags. "Jolteon is unable to battle! The winner is Pika, and the champion of this year's tournament is Red, from Pallet Town!"

Blue sunk to the ground, stunned and angry by the result. N-No way… I trained so hard, yet I couldn't beat him! Him, of all people!

As the crowd cheered for the winner, Red worriedly ran over to his starter, who collapsed from exhaustion. "You did great, Pika. Get some rest." His Pokémon softly nodded as he was returned to his Pokéball.

As he was about to console Blue, Red heard a familiar voice and turned around.

"Well done, Red!" Professor Oak congratulated. "You were excellent."

Red sheepishly flipped his cap back to its regular position. "Thanks, Professor. But I couldn't have done with without my Pokémon."

As the two continued talking, Blue slowly rose to his feet and returned his fallen starter. He angrily stared at his grandfather, who seemed to care more for his rival than himself.

"Of course…support the one who didn't know anything about Pokémon battling, Gramps… I'll show you two…" he muttered as he clenched his fists. "Then you'll finally respect me, Gramps!"

After their discussion, Red noticed Blue stomping back towards the locker rooms. "Professor, can we continue our discussion later?"

"Of course, Red. I want to congratulate Blue as well."

The boy nodded and ran after his childhood friend. When he caught up, he saw Blue holding back tears of frustration.

"Blue…" he began to say when Blue angrily faced him, startling the boy.

"Red…" he muttered, still clenching his fists. He then shouted, "I don't need your pity! Get out of here!"

Red tried to extend a comforting hand, but Blue slapped it away. As it hit the wall, the winner clenched his left hand in pain, Blue vented, "This is all your fault, Red! If only you'd lost…"

"B-Blue...this isn't like you…"

Blue retorted, "Yeah? So is talking to Gramps all the time! He's not your grandson, I am!"

Red was taken aback by the outburst. "But…Blue…"

"Just shut up… Stop talking for just one minute… Asking about battling advice, saying how Pokémon should be treated with kindness… I'm sick of hearing your voice! Leave me alone!"

Red was stunned by Blue's hateful attitude and let him leave without relating Professor Oak's message. Wh-what's gotten over him…? He's never acted this way before…

Professor Oak walked in and asked, "Where did Blue go?"

Red recovered but shed a small tear from his left eye. "I-I don't know, Professor…"

Unaware of the earlier event, the professor said, "Hmm… I'll try calling him later. Meanwhile, you should head over to the press conference. People want to know if you're going to challenge the Elite Four."

He silently nodded and headed into the conference where he answered their questions, but not as wholeheartedly. The only answer he gave full consideration was, "Yes, I'm going to challenge the Kanto Elite Four."

Blue smashed his fists against the walls of the Indigo League Stadium. He was standing in the back to avoid anyone, especially Red and Professor Oak.

Why couldn't I beat him when it mattered most?! Now I'll be the laughingstock of Pallet Town…

Footsteps approached him from a nearby forest, and the boy slowly looked up.

A pale man wearing a black fedora and trench coat appeared and asked, "Are you Blue Oak, from Pallet Town?"

"Yeah, so what?" Blue retorted.

The man chuckled, allowing Blue to notice a unique gold pin sitting on the left side of his hat. "I heard about your loss and I just wanted to see how you're holding up."

"Why do you care?"

"Well…" he stated, putting his hands in his pockets. "I would like to train you so you'll be prepared for a rematch. In return, I would like to see if you could help me with a future battle opponent. I believe you know him as the winner of the Indigo League this year."

Blue stood up and cautiously asked, "Why do you want to help me? And how do you know about Red?"

"I know how you feel, losing to someone you despise. Besides…you can say...he's a threat to me. I want to stay in power for as long as possible."

Blue thought about this. Maybe this is how I can get my revenge on Red! Then Gramps will know how smart I am!

"Fine, I'll help you. But first, who are you?"

The man laughed. "I guess you have a right to know. I'm the Kanto Champion, Giovanni."

On the peak of Mt. Silver, Red sat on a rock and stared at his Pokémon training for the Elite Four challenge. They'd been preparing for the past five months and were approaching their first Elite Four battle. Red then looked at his left hand, still sore from the incident with Blue.

Blue… Did my talking really bother you that much…?

Pika noticed his Trainer lost in thought and skipped over to him. The Charizard, Venusaur, Blastoise, Snorlax, and Gyarados stopped their training as well and followed Pika.

Red noticed everyone with worried faces and put on a brave face. "Don't worry about me, guys. I'm fine, really!"

Everyone shook their heads, knowing their Trainer's emotions after being with him for so long. Pika then nuzzled his face against Red's right hand.

Red chuckled and petted his starter. He looked at everyone else. "All right, I'll tell you guys what's bothering me. I'm still upset about what Blue said."

The Flame Pokémon released some small embers and scoffed, as if he was telling Red to forget about his rival.

"I know, Char. But he's been my best friend growing up. I can't understand why he changed before we started our journeys."

The Seed Pokémon grunted and petted Red's back with his thick vine.

Red laughed. "Thanks, Saur. I really needed that." He then made a serious face. "Guys, I've made a decision… I'm not going to speak anymore."

Everyone gasped, although the Sleeping Pokémon's gasp looked more like a yawn. The Blastoise grunted with a hint of curiosity.

"I know, it'll take some time to get used to it. But...maybe I should. I'll only speak when absolutely necessary. Besides, I want to see what Blue's talking about, and then hopefully I can repair our relationship. However, this means I can't issue any verbal commands. I hope that's okay."

The six looked at each other then firmly nodded at their Trainer.

Red stood up and shouted, "Okay! Pika, Char, Saur, Stoise, Snor, Gyara. Let's practice nonverbal commands and become the Champion!"

A month later…

Blue walked through the Pokémon League Association office at the Indigo Plateau. Like his rival, he was busy training as well, but with his new mentor, the Kanto Champion. Once he arrived at the man's office, he knocked on the door. When he got the okay from Giovanni, he opened it and entered his red-carpeted office.

"You wanted to see me, sir?"

To his shock, the west window was smashed open. He didn't remember seeing it broken when he visited yesterday, but he kept those thoughts to himself.

Giovanni noticed the boy and said, "Hello, Blue. Don't mind the window. I'm afraid Persian was practicing Thunderbolt a little too much."

The Classy Cat Pokémon shrugged and sat next to his owner's spinning leather chair. The two sat across the man's desk, which was covered with papers and lined with a few photos.

Giovanni started, "I recently received word that Red defeated Lance."

Blue recoiled in shock. "You mean he's defeated the Elite Four?! But it's only been two days!"

Giovanni chuckled. "I have to admit, Blue. Your rival's one tough Trainer. He's going to battle me tonight for the championship. But from what I've heard, he's no longer speaking. Not even to his mother. All of his commands have been nonverbal, but his Pokémon can still understand him. Do you have any idea why he's not speaking?"

Blue hid his fear. "No, I don't. Sorry, Giovanni."

The man carefully scanned Blue but said, "Anyway. I shall claim victory today, and it's because of you."

Blue smiled. "Anything to destroy Red."

Giovanni eagerly polished his gold Champion pin, grinning at the thought of eliminating another challenger. He then dismissed Blue, and he walked past the Indigo League Stadium.

Finally! I get to watch Red be destroyed by my new mentor! I can't wait!

Red and Giovanni were panting hard as the battle was getting closer to the end.

"This kid's sure something…" the Champion muttered to himself. "His battle style is nothing I've ever seen before. But his silence will be destroyed once I use my final Pokémon."

Red looked at the television screen. He was ahead by three Pokémon, but he knew it wasn't over yet. Snor was able to take out the Champion's Persian, but he was paralyzed in the process.

I need to use Snor, Char, and Pika wisely. His Pokémon are super strong, and somehow they were able to land critical hits so easily. Who knows what he could have.

Pika stood on all fours, ready to battle when he received the signal.

Giovanni took out his last Ultra Ball. "You are truly a worthy foe, Red. But my last Pokémon will destroy you! Go, Mewtwo!"

A strange pink and purple Pokémon came out, startling everyone except for the Champion.

As Blue was watching in the stands, he pondered. Who's that Pokémon? I've never seen it before…

He didn't think more of it when the Pokémon used a Psychic attack to easily defeat Red's Snorlax. Red then sent out Char and the two began a tight aerial battle. Although the Charizard injured Mewtwo with several Flamethrowers and Dragon Claws, the Psychic type was able to withstand them and viciously landed several Psychic attacks. Char roared in pain, but he refused to disappoint Red. As he charged forward with claws of green energy, Mewtwo unleashed several Shadow Balls, hitting the Fire type and causing him to crash onto the battlefield. After the referee declared Char unable to battle, Red gritted his teeth at his opponent's speed and power.

This Pokémon's really strong! It'll be tough, Pika… But I believe in you! Let's go!

Red thrust his right index finger, and Pika eagerly ran into the field.

Giovanni laughed. How futile. He can't beat me!

As Mewtwo unleashed more Shadow Balls, Pika dodged them all with Quick Attack and tried to lunge at his opponent. However, he was thrown backwards by its psychic abilities. Red immediately caught Pika, and they both crashed into the wall. Pika was surprised and became worried, but his Trainer gave a soft smile and nodded. Pika smiled and dashed back onto the field.

He then unleashed a powerful Thunder attack, but Mewtwo redirected it with its powers. The Pikachu tried to outrun it with Quick Attack, but it was no use. The lightning bolt surged through his body, and he began to pant. But Pika refused to stop battling and gave a determined cry. Mewtwo then became curious of the little Pokémon's willpower, causing the Champion to become angry.

"Don't just stand there!" He growled. "Finish them!"

As he rubbed his chest, Red became disappointed with his opponent. So the rumors about his thirst for power are true… I have to end this battle before this gets any worse.

He then nodded, and Pika dashed forward with his tail glowing silver. Mewtwo snapped out of his thoughts and grabbed onto Pika's tail. He struggled to break free, but was hit by a close range Shadow Ball. The Pikachu was thrown back and struggled to stand.

How does the Champion know all of my Pokémon's strengths and weaknesses? Did someone…? No, it couldn't have…

"What's wrong, Red?" Giovanni mocked the boy as he started to become paralyzed with fear. "Giving up?"

Pika fiercely looked at his Trainer and grinned.

Pika's right. I can worry about him later. For now, we need to beat him, with our new attack.

Red turned his cap backwards and formed a fist. Pika immediately understood the command and charged forward in a burst of electric power.

"Wh-What's this?" Giovanni muttered, shocked that he didn't know this attack.

Mewtwo tried to block, but Pika jumped up and smashed the Psychic type in the head, sending it into the battlefield wall. It broke free and tried to return to the field, but it stumbled and collapsed on one knee. Pika winced in pain from his attack, but he was ready to continue battling.

As the referee was observing Mewtwo's condition, Giovanni roared, "GET UP, MEWTWO! This is not what I created you for!"

Created…? You mean it's a Pokémon that he created for winning…? How terrible! I feel sorry for it...

The crowd then jeered the Champion, but he ignored their hateful remarks. Mewtwo saw the difference in the two Trainers' personalities with its psychic powers and decided to end the battle on its own terms. It got up and flew out of the stadium, refusing to battle any longer.

The crowd was speechless until the referee shouted, "The Champion's Pokémon has fled the arena, resulting in immediate disqualification. Therefore, the challenger, Red of Pallet Town, is the new Kanto Champion!"

The audience slowly clapped, then erupted with cheers and chants of Red's name. The boy smiled but hid it with his cap. He then walked over to the exhausted Pikachu and picked him up. After nodding approvingly to his starter, he looked around the crowd. But the person he wanted to find was no longer there.

Blue ran out of the building with tears streaming from his eyes. The words of his grandfather echoed in his mind.

Blue...you need to show your Pokémon compassion and care. Otherwise, you won't become a strong Trainer…

He ran into the forest and heavily panted. Now I know what you mean, Gramps… I made a stupid decision that almost cost Red his life!

A rustling came from a nearby bush, which startled the sobbing boy. When he looked up, he saw Mewtwo staring at him.

Human… the Psychic type furiously asked through telepathy. Are you affiliated with my former master?

Blue angrily sighed. "Not anymore… I can't face him, or Red. I'm too ashamed of what I did…."

Mewtwo saw the boy was speaking truthfully and nodded. Very well. If it pleases you, I can take you somewhere else with my powers.

Before Blue made his decision, he heard footsteps approaching. He looked behind him and saw Red, his new Champion pin on his cap. Blue closed his eyes and looked at Mewtwo.

"I'm sorry, Red. I hope you'll forgive me someday. Mewtwo…take me away from here. I have a place in mind."

Mewtwo scanned his thoughts and nodded. It lifted up its right hand and used its psychic powers to lift the sad boy.

Red wanted to shout, but he couldn't find the courage to talk to his rival. Then, Blue slowly disappeared. Once the deed was done, Mewtwo nodded to Red and teleported away.

Red fell to his knees and cried, unsure of where his friend was. "Blue… I have forgiven you… Just please…come back…"