No, TWE, ZH was asking East Cash, not threatening him. He mistook East Cash’s “one closest to my nation praise?” as asking for an island to be put near East Cash, rather than East Cash asking for the island to be removed.
Once presented with proper documentation proving that she is in fact who she claimed to be the Praetorian Guard escorted her to a meeting between her, the Council, and the newly crowned Kaisir II. Aethenia was allowed to present her case before them, and while the Council advocated that ties be severed with the foreign nation until a more thorough investigation could be completed, Kaisir II ruled that the agreements already in place were made in good faith. As such, any and all previous existing deals will be completed, however, until he has had some time to go over the late Kaisir I's notes and journals he will not be extending, expanding, or making any new agreements with the nation of Kaltovar.
I dunno, does having one of your allies tell you that you should be concerned about something between them and one of the most powerful nations in ATA seem a bit.. frightening and concerning, and that they should obviously know that?