Being on both sides of that, I was hugely amused as a player by that misunderstanding. Lord Protector Khaludh was on a completely innocent, non-diplomatic personal mission. The Arcaeans with him were there as a guard, as he is our General. Velax had no idea Kindara was seeing it as collusion between Zonasa and Arcaea. Galiard questioned him about it and Velax told him the truth. Not sure if that was passed on to Kindara.
Leofric, on the other hand, thought the same way as Edmund.