[quote=@Blackfridayrule]
[@Liotrent] Then  you'll get to know Ridahne very well then. I'm thinking people across the mountains contact her (or someone who then passes it on to her, whichever) via message hawk/pidgeon/raven? That way she knows when to go out there and how to prepare. As long as Dunfender is not strongly allied with Fellmore, perhaps they and Azurei could have a sort of working relationship. Either as actual allies or as neutral but mutually beneficial entities.

Actually, considering dwarves are typically the crafty type (I assume yours are, yes?) They might have a decent relationship considering Azurei is known for its silver, and maybe some semi-precious stone like carnelian, or coastal finds like abalone or mother of pearl. 
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If that's the case I have a feeling we'll get along nicely! The Dwarves are willing to craft and build anything of your liking as long as they are compensated well! Food supplies or other precious materials are all good points of trade.

In terms of our country's actual relationship, it depends on how you treat and interact with the merchants and how they broadcast their culture. My dwarves are obsessed with crafting, so much so that some of the things they make are so well decorated that you could swear it was catching light; it's also why their buildings last much longer because they are so well engineered.

In terms of Fantasy it's a stereotype that dwarves and elves don't get along, but again, different fantasy setting (Also the reason why I don't have dragon slayers - because they haven't actually encountered dragons yet).