I believe that this paragraph (on p33) refers to Phargentes ruling Tarsh under the Empire.
Om p28-9 we have the death of Moirades followed by the capture of Tarsh by Argrath's forces (Part 3). While Phargentes possibly leads the army in Part 4, the two texts disagree and the Northern text's statement that the King of Jillaro lead the army is in my opinion more probable. Neither is apparently the Emperor. The CHDP version (p159) has Jar-Eel in command with Prince Pardidas of Jillaro commanding the centre, with no mention of Phargentes. Argrath wins this battle
p31 (Part 5) has another Lunar attack, reconquering Tarsh, and this leads up to Argrath's quest and his return.
All this said there is nothing wrong with the idea that Moirades plan is to make another Lunar Empire in Dragon Pass (although the treason part is pretty dangerous). But if so, it does not appear to be successful in the official timeline.
-- -- "The T'ang emperors were strong believers in the pills of immortality. More emperors died of poisoning from ingesting minerals in the T'ang than in any other dynasty" - Eva Wong _The Shambhala Guide to Taoism_ Paul K. ------------------------------
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