Ah, the sepia-toned flashback sequence.
There are several scenes in the movie that take place between NPCs, with no PCs present. Since none of the players are there to witness them, we've been skipping over them, and the players remain unaware of any of those events.
However, at some point we actually wrote dialogue for this confrontation scene in the Senate between Queen Amidala and Chancellor Valorum. And we thought it was simply too good not to show. So we're using it here as a flashback, as Senator Palpatine reports to Queen Amidala. Jar Jar is in the room for this scene (as seen in the previous strip), so it's fair enough that the players are privy to this exchange between the Queen and the Senator. The GM then uses the opportunity of the two NPCs talking to one another to perform this little piece of flashback plot exposition for the benefit of the players.
Oh, and by the way: Mmmmm... ice cream...
Transcript
Palpatine: I have news, Your Highness.
Queen Amidala: Speak, Senator.
Palpatine: The wheels you set in motion in the Senate are turning...
{flashback to Queen Amidala's speech in the Galactic Senate}
Queen Amidala: It is my sad duty to report to the Senate that The Trade Federation have landed an invasion force on Naboo.
Valorum: <yawn> Wake me when you get to the good bit.
Queen Amidala: Their droid army has captured Theed—
Valorum: Good for them! About time the droids threw off their human oppressors!
Queen Amidala: The people of Naboo are dying!
Valorum: So fragile these organic bodies. We should set up a committee to investigate turning everyone into cyborgs...
Queen Amidala: I will not let my people die while you discuss this in a committee!
Valorum: Cyborgs under my command! Kneel before Valorum!
Queen Amidala: This is outrageous! I call for a vote of no confidence in the Chancellor!
Valorum: I call for ice cream! All in favour?!