He said "friendship increase", not "alliance".
"If you claim too much territory in a certain amount of time, however, the opposing world power (eg you're communist and conquer a lot, then Germany will get pissed) will declare war on you and basically kill your face. Being democratic will be the most difficult of all play styles considering you will have both world powers looking down upon you with no foreign support."
You are not allied with the Soviets even if Germany is.
"Battles and occupations between the two world powers will occur during gameplay."
Owned.
Wow, nice ninja edit :(
No, that is not an alignment. It is a bloody alliance type thingy. You are basically asking them to be fascist in itself, yellow on both maps, not under your flag. The NU is not an alignment. Neither is the Fascist Bloc.
Having the same GOALS does not mean they allow would fascist-scum to go through communist-occupied lands.