after i had established a good idea of what was around me and started a single city (20 turns or so) i moved my chanler onto my city square, his HUD stayed up instead of the city screen and the "create city" button was avalable, after pressing this, my screen was flung to the north-eastern most part of the map and, after i returned my city, the second one was gone. the only thing was i was able to build roads between both cities and info screens alaways told me i had two cities.