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... exchange territories, even a small portion would create a noticeable gap in the Paluo Federation’s defense.
This is equivalent to a sharp blade hanging over the Paluo Federation’s head, like a bone stuck in the throat.
Similarly, due to the Paluo Federation’s system, exchanging the land of that city-state would be a bad debt.
As for the last condition, it is actually the easiest for the Paluo Federation.
Just treat it as spending money to buy peace; the city lord ...
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