Just want to say, I'm not TORN.... but I was in a previous life (KungFuGeek for anybody that remembers), and i was a regent in TORN back then.
From my recollection, NPO did attempt to discuss peace terms on day 1 that did not include TORN. In TORN's Gov channel, everybody was completely pissed off and felt betrayed. We thought screw them then, why the hell are we going to fight then.
So yes, from TORNs perspective, NPO was negotiating a surrender and about to leave TORN holding the bag.