The biggest disagreement was actually about the way to handle the East Ocean Fleet of Newland.
From the beginning, when Zheng Jiangming initiated negotiations with Nizi, they adhered to a principle: Nizi and, more precisely, the officers and soldiers under their command in the East Ocean Fleet, must surrender unconditionally and cooperate with and accept the arrangements made by the Imperial Navy.
Regarding the battleships, they must also be transferred intact to the Imperial Navy.
What the Imperial Navy could guarantee was to provide all Newland Navy personnel with living conditions no worse than humanitarian assistance before the end of the Global War, and to provide repatriation services after the war ended, as well as assuring that they would not be pursued for war crimes committed under orders of the previous government.
Clearly, Nizi did not accept these terms.