Not having heard any of the negotiations involved IG, or seen many messages about it at all, I will say that it seemed to my character that this new Empire was a big gauntlet thrown in CEs face. CE is undoubtedly the big power on the island. The new Empire appeared to be an attempt to limit the power of CE. I really can't figure out how anyone can interpret it any other way, whether Merlin intended it to be that or not.
Also, expecting the various rulers to not share their letters among each other IG/IC is more than a little naive.
