Talks have been ongoing in secret for over 7 months according to sources and now the Clones have officially established diplomatic relations with the Rectoids. The Rectoids are a 7 Sa Sao related faction (its still not clear if they are part of the 7 Sa Sao chapters or an ethnically related faction) who the DDS engaged in a war with in the mid-2100s.
The war was brutal at times, the UNP colony New Britannia utterly destroyed in one Rectoid attack. The war ended when Recta, the home planet, being devastated by bio-genic weapons which killed billions thanks to the war criminal Megara. Much of the Rectoid fleet committed mass suicide out of sheer shock. Since then the Rectoids have been quiet apart from the odd attack on the DDS by rogue elements. It is thought they have been slowly rebuilding their fleet and repopulating their home planet from Rectoids on other planets in their space.
The Rectoids becoming a Clone ally (and if rumours are to be believed entering a military defence pact too) then this has serious strategic implications for the DDS and Eritrans. The Free Eritran States lie in-between CSE-E and Rectoid space indeed.
Emperor Oojok said he will meet the Rectoid leadership soon and "sign a number of deals". One rumour has it that the Rectoids could be buying Clone warships and weapons.