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IIRC it was Lusted (could be else) but a CA rep -reportedly- posted at the .com that the diplomacy engine had been developed by a different team, separately from the military/political one up to Empire. As a result, the military/political engine disregards the diplomatic stance on making decisions. Based on this, I've named diplomacy in Total War an unfeature. It's good only for role playing.
I hope they integrate the engines in Empire and also add some effective penalties when you or the AI backstabs, similar to the stability drop in EUIII, and make it mandatory to break alliance before waging war.
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