> Since the Sartar Kings aren't known to have dragonewt allies, I
> think the Lunar dragonewt regiments might be the result of some
> control spell taught in the City of 10,000 magicians.
I don't think so. Individual dragonewts are magically very powerful and would be difficult to compel. The 'newts trade so I guess that they could be recruited as mercenaries (However odd that may be. What could they want/need?). They may even help the lunars because they guess/know that they are going to have to help the otherside at some point in the future... Well maybe not, but if the dragons are working for the empire they must also be working against them. I guess that would minimize the entanglements somewhat. It would be best not to meddle at all, but as someone said sometimes inaction can lead into further entanglements.
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