The Romulans are already working on phasing cloak tech prior to the events in The Pegasus. I have to back Picard's call to expose the truth, firstly because it's the truth. Secondly, to not come forward risks a cover up being developed, a cover up which almost certainly would involve pretending the Enterprise never got out of that asteroid, meaning quite possibly the ship getting mothballed, the crew getting broken up, and maybe even sequestered. You can't have them roaming about when they should all be dead in an asteroid
I did not mean to suggest a cover up. Once the Enterprise emerged from the phased cloak and out of the asteroid, in plain sight of the Romulans, Picard should have imo offered the deal that I mentioned in my previous post.
Thirdly, making that treaty (& protecting or salvaging it) may be necessary because Starfleet NOT actively engaging in an arms race could be the only thing preventing all out war. The Romulans had cloaking tech before the UFP. Any attempt by the UFP to develop such tactical tech to compete, (Initiating the arms race) is clearly a declaration of animosity. Saying by action that you refuse to let them have a weapon which you do not also possess can only mean one thing. You are our enemy.
The Feds would have to be naive to think that the only thing that has prevented an all out war with the Romulans is a piece of paper (or whatever it is that they use to write their treaties on) or to think that the Romulans are not their enemies.
By their actions, the Romulans have already declared their animosity towards the Federation and that the Feds are their enemies. The Romulans have engaged in small scale and covert warfare against the Federation since, I guess, the Balance of Terror.
I can think of a number of instances of this type of Romulan warfare against the Feds.
The Romulans attempted an invasion of a Federation member, Vulcan. They kidnapped Geordi to manipulate him to sabatoge the Fed-Klingon alliance. They created a trap with a Romulan defector to trick Picard to enter the neutral zone and Picard took the bait.
And in the Pegasus episode itself, the Romulan ship deliberately caused the opening of the asteroid to cave in, thus trapping the Enterprise. That was an act of hostility committed right in front of Picard. It was a shame that Picard showed more anger at Pressman's transgression than toward the Romulan aggression.
Picard should not have been apologetic, especially in the face of aggression.
Why should the Feds concede phased cloaking technology to the Romulans anyway? The no-cloak-for-the-Feds treaty is already lopsided, why concede further advantage to the Romulans?
There is a danger if the Romulans do finally succeed in implementing phased cloak technology in their warships. It might actually encourage them to engage in more aggression against the Feds. The Romulans may think that phased cloak finally gives them the edge that would bring a successful military victory over the Feds. If the Feds, as Picard wishes, continues to fully abide by the no-cloak treaty, Starfleet would not be able to openly counter and thus deter the Romulans.
Besides, it seems to me that the Romulans have more to fear than the Federation. I would think that the Romulans would be more willing to renegotiate the no-cloak treaty in order to ban phased cloak systems for both sides than to allow the Feds to withdraw from the treaty and employ cloak in Fed ships. Picard should have used the successful demonstration of the Pegasus cloak as leverage.
The Romulans had all the excuse they needed with the Pegasus incident to declare all out war with the Feds. They caught the Feds red handed in violating the treaty, yet that didn't prompt them to declare war. It seemed like it would have been worth the gamble for Picard to take a more assertive stance. The Romulans did not appear to have the stomach for a full scale war.
And in the other instances that I mentioned above, the Romulans have always backed down from going to full scale war when Starfleet stood their ground, even when the Fed was in violation of treaty, like when Picard fell for the defector trap.
From watching those eps, I have gotten the impression that the Romulans can be deterred, but only if the Feds are willing and able to counter hostile Romulan actions.
That treaty gives them the political leverage to say they support peaceable relations. You don't give up political leverage to Romulans. It's exactly what they want. That's why I think they made that treaty. They get to hold the moral high ground, which is why other races, like Klingons have their back. You can trust the UFP, even if a jerk or two slip up from time to time. You blast it out of the water, & keep trying to hold your moral ground
I agree with your sentiments about how the Federation should always try to hold the moral high ground and to maintain their values. But when they are dealing with an aggressive imperialistic foe like the Romulans, the Feds have to throw military strength into the mix. A piece of paper can only go so far. The Feds have to maintain a credible deterrence. Federation deterrence through strength is something that can keep an aggressive Romulan Empire in check.