Yes the gems will be a luxury that will be very useful now. Settling north of the lake would have allowed me to make better use of them but oh well.
The diplomacy side is definitely something I am lacking experience in (ie: none at all against people). With what looks like Matrix on one side (Immortals) and Azza on the other (Legionaries) they both have slightly later UU than me. It would be easy to get myself into a situation where I can't actually use my UU on my neighbours. Matrix is very close, but it may be better to try and go for Azza before those Legions hit the scene. This is however a small map with 9 civs, so I don't think it will be long before I meet more.
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