Duke Arnold,

I had wished to spare the Diet from a legal lesson but if you insist...

The power of the Chancellor to recruit troops is enshrined in 2.1:
Spoiler Alert, click show to read: 
2.1 The Chancellor is much like the player of a solo M2TW campaign - he moves all the units and agents on the map; he decides all the buildings and which units/agents to be trained.


The chancellor is only constrained in this by CA 11.5, CA 5.1, and CA 12.6. Any recruitment not authorized by the Chancellor is illegal. I have it from the Kaiser personally that he did not authorize the recruitment of the army at Ragusa nor does he control them. Therefore, the army is illegal and your assistance in providing political cover implicates you.

House Armies are enshrined in CA 5.1 and CA 12.6.:
Spoiler Alert, click show to read: 
Charter Amendment 5.1: Each Duchy shall have a Household Army with which to defend its territories. The Household Army will be governed by the following clauses:
Quote:
1) The Household Army may not be removed from the House’s provinces without the permission of the Duke.
2) The Duke will determine where the Household Army is to be garrisoned. This location can be changed at any time, so long as the Duke informs the Chancellor of the move. The Chancellor will not remove the Household Army from the garrison without the Duke’s permission, except as required to fulfill Clause 4.
3) The Duke will determine who commands the Household Army.
4) At the beginning of each Diet session the Duke may assign general orders to the Household Army, which are to be carried out by the Chancellor. Between Diet sessions, any additional orders submitted by Dukes are to be implemented only at the Chancellor's discretion. The Duke may select one of the following Orders: (1) attack any rebel force in House territory, (2) attack any hostile force in House territory, including other factions, (3) attack any foreign or rebel army in House territory, including neutral (but not allied or crusading) factions, (4) temporary assignment to another House, (5) assignment to offensive duties. If Order (4) is chosen, the Duke may determine the time limit of the temporary assignment and the commanding general, but all other decisions are made by the Duke of the receiving house. When the time limit expires, the Household Army must be immediately returned to House lands, no matter what other circumstances occur, unless the Duke agrees otherwise. If Order (5) is chosen, the Duke may specify an enemy settlement or army as the objective and the commanding general. The settlement or army must be in a province that borders the House and the Reich must already be at war with the target. All other decisions are made by the Chancellor. The Duke may recall the Household Army from offensive duties at any time and for any reason.
5) The Household Army will consist of a minimum of 3 infantry regiments, 2 ranged regiments, and 1 cavalry regiment. The Household Army will ideally consist of 4 infantry regiments, 3 ranged regiments, and 2 cavalry regiments. For the purposes of this rule, Generals’ bodyguard units do not count as cavalry regiments. All regiments must be professional soldiers, not militia.
6) If a Household Army falls below the minimum strength level, Imperial military recruitment must be allocated to restoring the Household Army to minimum strength before forces can be sent elsewhere.
7) The Chancellor will attempt to maintain the Household Armies at full strength, with the highest quality regiments available.
8) In emergencies, the Chancellor may detach any units in excess of the minimum strength level for use elsewhere. The Chancellor may not reduce a Household Army below the minimum strength level without the permission of the Duke.
9) If the Imperial Treasury cannot support all Household Armies at minimum strength, the Chancellor must consult with the Dukes and receive their permission to reduce the Household Armies in such a way as to eliminate the deficit.
10) The Imperial Diet may temporarily remove any or all of these rules by a simple majority vote. The temporary period will last no longer than 10 turns.

and
Spoiler Alert, click show to read: 
Charter Amendment 12.6: (1) Each House will have TWO standing Household Armies. They will operate according to CA5.1 in all respects, but have separate commanders appointed by the Duke.
(2) Outremer will have two standing armies. They will operate in accordance with CA9.1, but have separate commanders appointed by the King.
(3) The Kaiser and Prinz will each command standing Imperial armies, of the guideline size given in CA5.1. The Kaiser and Prinz can each give orders for their army during full Diet sessions. They are expected to personally command their own armies but can nominate a replacement commander at any time if they are too busy attending to civil matters. The Chancellor and the Kaiser/Prinz are expected to liase closely over the use of the deployment of the Kaiser/Prinz's army.


Therefore anything above these two forces is Imperial and not subject to control by the Duke. Both Ragusa and the Prince army are Imperial forces. Unless you are claiming that the Ragusa army is yours. That of course would implicate you in owning an illegal army.

The movement of the Prince army is enshrined in CA 12.6 which I have already shown. As you can see, movement of this army is between the army commander and the Chancellor. The Duke has no authority to order this army to do anything. He can ask though.

So, according to section 2.1 of the Charter, the Ragusa garrison is illegal. According to CA 5.1 and CA 12.6, the Ragusa garrison is above and beyond the authority of the Duke of Austria. According to CA 12.6, the Prince's army is above the authority of the Duke of Austria. Therefore, by claiming that the Ragusa garrison is a legitimate Austrian Army and by preventing Duke Hans to disband it, you are admitting to helping break three laws at least.

In light of my belief that you are committing illegal acts, it is now entirely appropriate to question your loyalty. By covering for this illegal army, you are responsible for it's actions.