True, but I thought I'd put it out there to help people make sense of what I was getting at. As for your question on the privateers, things tend to get very hazy with them but I'd don't imagine we would sanction them raiding neutral beneficial trade within bretonia. Ideally, we would merely gather the information regarding such attckas and allow the BAF to deal with them, but in game I imagine we'd take a course similar to what you described.
The topic of foreign intelligence services is also a bit murky. Rheinland and Kusarian operatives are hostile and will be activeyl hunted down, that's our job. The LSF are our liberty counterpart, so we're on friendlier terms with them but that doesn't mean they have a free ride through bretonia. Just like the LN isn't authorized to shoot down criminals outside of liberty and the border systems, the LSF will not be permitted to parade through bretonnia at will. I don't see this as a problem, it's not as if they do this at present, and exceptions can certainly be made to allow collaboration of our organizations.
Should an unauthorized LSF agent be caught within bretonia, it is unlikely that we would immediately shoot him down, although I won't rule it out entirely. Ideally, somewhere in the "RP before engagement" would be some questions as to why he's in bretonia and for what purpose etc. which would determine the subsequent course of action. Keep in mind however that we will be doing our best to keep secure, and any unauthorized foreign intelligence vessel could be easily seen as a threat.