Personally, I take this sentence to mean that Iz has been approached by Ragesian diplomats/agents and has chosen a guarded stance... neither accepting anything from them nor (more importantly) offering anything, because, hey, we're all in the same boat.
In this, Iz appears to share Megadon's opinion about the threat posed by Ragesia.
Because I didn't actually write the thing, I'll note for completeness's sake that this is my take on it after simply reading it and mulling it over a bit. If it's a typo, it's a typo, but if it's not....
At this point in their journey, the heroes are probably a little wary but not averse to making allies, so it looks to me like the adventure assumes the topic of Ragesia comes up in polite conversation. Iz will almost certainly offer his opinion over dinner. If the heroes don't get the dinner, his opinion might still be revealed to the heroes somehow if the heroes bring up the topic.