The Maltese are just about as close as you can get to Italy underneath the iron boot of Mussolini without having a Nazi fetish (though that could be fixed if Alec created an Outcast)... still... I approve of this idea since there are different varieties of fascism which could prove to be quite interesting when applied to Freelancer.
Oh, and the way you propose to handle captured tech makes a lot more sense than some OTHER imbeciles I know of. That's all the more reason to like you, I suppose.
Good luck.
Edit: Hrm... your view on Maltese roleplay is a bit warped, but it's not so warped as to cause any complications further down the line.
To be more specific: We're not democratic. Whatever democracy we appear to have is a front for the horrible, horrible truth.