Leon's decision to cautiously explore Foscari's mediation offer proved complex—as resolving longstanding disputes with smaller principalities risked legitimizing Venice's past behavior while potentially creating new dependencies on a power known for its unequal trading practices.
Working with Isabella and his advisors, Leon developed a framework for the negotiations that prioritized fairness, transparency, and safeguards against future exploitation—insisting that any settlements include independent oversight mechanisms and guarantees of equal treatment under law.
He also sought support from England and France to ensure they would not be disadvantaged by any agreements reached between the empire and Venice—recognizing that coordinated action among multiple powers was necessary to create a level playing field.
Meanwhile, Venetian agents launched a disinformation campaign accusing Leon of betraying imperial interests by negotiating with their representatives—claiming he was sacrificing national sovereignty for personal gain while failing to address the core issues of trade imbalances.
Leon countered these attacks by publicly explaining his rationale—emphasizing that seeking peaceful resolutions through diplomacy served the empire's long-term security interests better than resorting to economic conflict or military confrontation. He also pointed out that any agreements would be subject to ratification by the Imperial Diet and could be modified if they proved unsatisfactory in practice.
As negotiations progressed, Leon uncovered evidence that Foscari was secretly pressuring several of the smaller principalities to accept unfavorable terms—threatening to impose trade restrictions if they refused while offering lucrative incentives for compliance.
This prompted Leon to demand greater transparency in the proceedings and insist on independent verification of all agreements before they were finalized—drawing criticism from Venice who argued it undermined the confidentiality necessary for productive negotiations.
Meanwhile, Isabella discovered that Foscari had been using coded messages transmitted through seemingly innocuous diplomatic pouches to communicate with Venetian agents throughout Europe—coordinating their efforts to influence public opinion and obstruct Leon's initiatives.
She managed to intercept several of these transmissions—providing concrete evidence of Venice's continued interference in imperial affairs despite the ongoing negotiations. This discovery raised serious questions about Foscari's true intentions and whether he was genuinely seeking reconciliation or merely attempting to buy time while consolidating Venetian power.