Yes, your assassins can gain skill levels from sabotage but not as quickly as from assassinations... I'm not sure if the experience you gain in accumulative towards leveling up but I use my assassins every turn to sabotage and when they do level up its more than just a single point. I have six level 8-10 assassins in contested areas and I've sent more out abroad to train up likewise.

Oh, upon further reflection... I realize that it seems only the first assassin to hit a city/town will likely get a point increase so its not a bad idea to let them go from place to place.

As for alliances, I find that its merely an intention between two parties to not attack each other unless it becomes opportune to do so. For me that's about as good as having someone neutral... trade rights have more of an impact on my game cause at least that helps my income.

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