[busyrobot]

I am glad you asked about that:

To clarify, it simply means that a non-pact Kingdom would not be subject to an all out war on its soil, but that the Kingdoms within the pact would still defend eachother.

See section IV:


IV: All Pact Members agree to come to the defense of a Pact member should a member Kingdom be attacked, although combined defense shall not lead to pre-emptive strikes or attacks on the Hostile Kingdom, unless over time it is deemed to be a continuing threat to the peace, at which time involvement in an aggressive attack will not be compulsory but a voluntary coalition.


This section clarifies the point, I think. The goal of this section is to prevent a small battle escallating into a full-scale global war, while still allowing for defense.