4a, 6b, 5c
You decide to negotiate with Innocentius and the merchants to work out some compromise.
5
While Innocentius cannot really stretch the allowed gold, he decides to toss some money from his own salaries after making a side deal with the affected merchants, who decide that - after your nagging - they shall accept this compensation.
After signing no less than seven documents for Innocentius, you are left with the money-loaded wagons in your palace as the Damdamian soldiers go back to Republican lands.
863, Winter
The people of Luathbas - and your court - receive upsetting news: Kiwi Empire is no more!
Well, at least not in its original size and composition; there is still Kiwi Empire, but it consists of the southern parts of the former Empire; the northeastern part is now Duchy of Koi, a vassal of the Chuunak Khanate. The Khanate itself was, just two decades ago, a wandering alliance of horsemen tribes, but it grew in size, power and numbers, till they had ability to crush the militaristic Kiwis under their hooves. The Khanate is currently rulled by Adilla, son of Chun.
863, Midwinter
A delegation from the numerous minor kingdoms in the west arrives at your court. Their leader, a tall man in black cape with white fur collar, speaks.
"At behalf of the several kingdoms west of Luathbas - greetings to Llewyn, King of Luathbas! We have heard that you possess a mighty and professionally-trained army, sire. We wish to ask you to join our resistance against the barbaric Khanate of Chuunak. Please lend us your mighty army so that we might repel the ever-rising threat of the Khanate before it engulfs us all!"
A) It's better to have some buffer between Luathbas and some other powerful nation; lend them part of the Army for a year.
B) You can't afford to split your Army while the danger of being invaded by Damdamians is still fresh! The delegates shall go home empty-handed.
C) Attempt to squeeze out some money out of their nations' coffers first!