According to the wording of Proposal 68 ver.2 there were no 'demands' being made. Three proposals were made which hardly seemed to be unreasonable or overreaching on the part of the Fenyaro's rep.
1. The Fenyar government wishes to remain autonomous. We will adhere to Imperial rulings, but otherwise we would like to self govern our people.
Okay so they promise to follow Imperial decrees but want to self-govern their own people. I doubt they'd get too rowdy the Empire couldn't handle it, nor would it be necessary to micromanage/occupy them to achieve the Empire's needs so low impact on Imperial resources there. If anything, doing so is moreso a drain on resources, albeit a slight one. Nepleslia is allowed to handle their own internal dealings and they are far more chaotic and dangerous. If the Empire wanted to clamp down on the rampant violence it would be a task of enormous magnitude costing much in time, resources, and lives.
2. The Fenyar government would also like to keep our system of commerce. Exchange rates would be issued and proper trade locations would be added.
Again low impact. Hardly a 'demand' on the empire. If anything the Fenyaro stand to lose out more should an unscrupulous trader throw a good enough sales pitch at an unknowing individual. Care to trade me Manhattan Island for this box full of bead necklaces?
3. The Fenyar government, due to issues best left silent, would like to request a ban on Imperial technology from being allowed on Fenyaro soil. Excluding the means of transit on and off the planet.
Whatever reasons this may be, it hardly constitues a demand or a threat to the Empire. Maybe they just don't want their way of life to be drastically changed by the presence of such advanced technology before they are ready? Even if its for sinister reasons this is unlikely to be a danger. I doubt this would be in any way an inconvenience since any facilities like a listening post or security station could just orbit the planet.
The Empire might want to look good, but it could probably find someone else somewhere who would join the Empire on less conditions. I say that that's the only thing that the Empire would get out of admitting the Fenyaro because the tech level here is so high that nothing else can be done.
True it could just as easy to find another civilization with less stipulations but planets with friendly or even neutral locals don't just drop out of the sky everyday. Given that these three requests are not at all taxing to the Empire, this one is about as good as it gets. Then when the NEXT low tech civilization or even high tech, although its going to be very difficult to match the empire without having expanded out a few times themselves, is discovered and give their requests when asking for admittance into the Empire, it won't be the 'first' positive step. Besides, just how many conditions are 'too many'? Is three really too much?
the star army manufactures personel
Then there's no need to go down and 'conquer' or enslave the local population. Besides that would only work against the Empire's image.
Planetary control and the fenyar goverment's permission is hardly needed to maintain a post there
True that but you never know when someone might crash land there. One of the conditions Perry forced on the Japanese would be to provide comfort to any sailors who were shipwrecked on Japan. In this case there is no need to force it. The Fenyaro rep is asking to be let in and I'm sure that aiding any Imperial combatant that is injured after a forced landing would be a result of that. Why make enemies when it is not necessary or depopulate the planet when they could be helpful? Besides, like stated earlier, posts can just be orbital.
A planet that the goverment has to be protected and offers nothing in return is more of a drain than a boost in prestige. They can also easaly drag the empire into their own wars if the goverment isn't careful with them. In this respect they are a liability.
As stated in the requests, they wish to be self governed. That likely means they intend to handle any infighting or civil wars themselves. How could they drag the Empire into its own wars when the Empire could easily raze the entire planet? If an external force is encroaching on them why allow that force a base from which to establish further strikes, possibly on the Empire? At most a small patrol or even unmanned probes can warn if Fenyaro is being invaded. This would hardly be a drain on a force that has thousands of ships.
I would've replied sooner but I just recently got home from work.