But at its origin, I don't think Madina was hostile, but it really was like "Eh, we didn't sanction this, we don't take any responsibility for what they do". I believe it's chronicled on the Dwilight Daily. Ties were forged later.
I do remember wishing The HSG good luck and giving them well wishes. And Vallyn made a strong attempt as the Lord Admiral at the time to maintain positive relations with the Taselak nobles - whether the rest of the Grand Council did or not is up in the air.
I'm sure it wasn't all flowers and butterflies - but at the same time, Fissoa forming nearly wiped out Madina at the time since it left us so few nobles and military. So, I think it also depends on the point of view - I know I was less happy with Fissoa forming at the time, than I was when Caerwyn was formed. Vallyn only stayed in Madina because of his Lordships and Ranks - otherwise he probably would have joined Tsuboh and Daenah and the others in Caerwyn.