You thank them for the gifts but say that their kind is not welcome in Luathbas as differences in laws and customs would only bring strife to both tribes.
The lizards hiss loudly amongst themselves, and the smallest one then steps forward.
"We go and never return. Beasts can find elsewhere." The smallest then turns on its heels and leaves, all of the taller ones following suit, one dragging the body of the slain lizardman.
The guards then take care of the nobleman's body and a letter is sent to his family that he 'died in honorable duel'.
*KZZZT*
TWO DAYS EARLIER
As the grieving, angry nobleman leaves to claim a guest chamber for himself, the guards bring in the emissary from Queen Sela of Dahnia.
"Again, let me tell that I bring good news from your aunt, King Feodh."
"And what would those news be?"
"A trio of adventurers have managed to come back and tell us tales of the elven lands. Apparently, there is a mountain chain far to the north; then one should follow its southern edge westwards and a bit south, to vast, rock-covered plains, and across them, there is a large forest of red pines. That marks the border of the elven land, and the adventurers said that all elves they've met were either scouts or hunters. Not a single family or settlement was seen, so they must live further away. The adventurers say that they have travelled for at least hundred days before they met any the elves."
A) Splendid! Let's prepare our Army to march into the northern/western/whatever wilds and crush some pointy-eared heads!!
B) That is much further than we've anticipated. Let's hire some adventurers to go and cause chaos amongst the elves.
C) Bah! Our Army cannot hope to succeed alone in such faraway lands. We've got to abandon the plans of war against the elves.
D) If maps and scrolls are to believed, the Khanate stretches up north somewhat, behind the mountains where rainbow lizards live. Maybe they have a guide or two for hire?