Personally, The OP sounds to me like a huge exploit...but its an interesting find ;)
The diplomacy is so screwed up in RTW though, that I suppose there are exploits, and exploits.....
And on a similar theme, what the heck does "Please Do Not Attack, Accept or We Will Attack" possibly mean?, when you are already at war with said stooopid ai? So if I attack you will attack back? well doh...
I love any kind of rationale behind the inclusion of that bit of code...
EDIT: And no offence to anyone at all intended, but if you are constantly exploiting the extra mnai the ai get on very hard (i.e. effectively converting it into free currency for yourselves) , then you are actually playing at a lvl below H/M, as the only advantage the ai gets is its extra cash. You're only real struggle, comes from managing your finances in a way you can keep building and support the requisite armies. Take that away and well....
Just my opinion btw...
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