He's talking about the capital, although I don't even know where Dysanii capital is. Where it is, it can't be in Valhene, or if it is, Feniexia wouldn't be there for sure. That's what Osa wants to tell. Also, New Delfos will also recognize (or maybe not, who knows when we reach there) Valhene Republic and it's forces, depending on the normal time-line.