"We do not recognize the [i]Empire[/i] of Xigyll. We recognize the [i]Kingdom[/i] of Xigyll, and only under better terms than that" Mazdak explained. "As for the tariff deal, we can work with it. We are prepared to make economic deals, and that's a good start. Gods know they charge far higher taxes in Hekaga. As to the bigger point, you need to understand that an empire is a state made up of the lands of many nations, implying a claim on someone else's territory. The very claim of empire alone invites danger. Plus, Xigyll isn't the size of an empire at all. More like a small fraction of a dracon kingdom. Frankly, the title of king is pretentious enough when there are dukes and sovereign princes with domains which dwarf Xigyll by far." 

Mazdak turned his gaze to Ardasa, finding her easier to deal with than Rughoi. "But don't let yourself be fooled by the siren's song of cultural tolerance. That's how countries come apart. A realm can be multiethnic, multiracial, and even multilingual to a degree, but it cannot be multicultural. Culture is what binds a land together with unspoken bonds which cost little to maintain and require no force to protect. Law is only a bond when it can be upheld, and no law is so well enforced that it can be upheld when enough of its subjects aren't of a mind to obey it. In other words, laws only work when people choose to follow them. It's actually a problem in Hekaga, believe me. That's how I know. Without a dominant culture to hold sway over subcultures and set norms to follow, your realm will disintegrate like a brick wall without mortar." 

There was a long pause. He had gotten a bit off-track, but it was for a good cause.

"I know you might not like giving up a title like that, but it's the only sensible course of action. People can't help but associate the title of "Emperor" with "Dememoras." Hekaga allied itself with that devil and we found ourselves without a king entirely. My lord Ternoc is a Grand Prince, as you may well remember. If it helps, you might try a title similar to emperor without using the name itself. Something like... autokrator, basileus, or maybe even despot?"