Aye I think that's exactly what he meant.
In order to continue their ability to do 'business' inside house space, the Junkers not only would be no help establishing an illegal base -in Bretonia- they would be forced to report it or face Breton sanctions.
It would make a fine diversion from the Junkers other 'business', as well.
"Look officer! An illegal base!" *points to the base with his left hand while waving-in a convoy of smuggling transports with the other*