You can get +4 to valor too, so why go for morale (or perhaps you meant valor).
I tried to research the diplomacy upgrades this time (H/H) and it seems to be a good idea. It also looks that I could keep the Date as my ally even after the realm divide since I can keep them up even if I get -200 from the divide event eventually. I perhaps have to give them some money, but my treasury can surely handle it.
For the arms race, I don't see much point in going for several types of units. I tend to go for the spears and the bows. Spears are great because they also help with the naginata, which is an ok replacement for swords when you can stack high XP and some attack bonus on them.
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