In Europa Universalis II, a guarantee is a threat of war against any country which declares war on a protected country. Sending a guarantee is a diplomatic action. There are no special preconditions for sending a guarantee, except that there must be no existing guarantee. Normal preconditions for diplomatic actions apply: the country must have at least one diplomat and enough money. Once sent, a guarantee creates a diplomatic agreement (called the same thing, a guarantee), which lasts for 20 years. There is no way to cancel a gaurantee once sent.
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