From Conflict of Nations Wiki
Your diplomatic relations are pivotal to securing victory for your nation. Will you negotiate a short-term peace treaty with your neighbours? Or are you going to form a long-term coalition to dominate the world as a team? The game currently offers five diplomatic standings.
This relation allows two players to share intelligence reports. Any intel either player has gathered through the intel panel will be available to the other.
The peace relation is ideally used as a stepping stone towards a deeper diplomatic relationship with another nation. This is purely a gesture and does not affect game mechanics.
Right of Way
Right of way allows players to move units through each other's territory, including air lifts and refuelling via airports.
Caution: If you grant another player Right of Way, and they have infantry units stationed in your territory, they can immediately capture your provinces/cities if they decide to declare war.