Hopefully someone who knows more will chime in....
I bet a nickle that you should just have to talk to him. The fact that he's yellow might be important, though, because maybe he needs to be friendly to have the discussion. My advice would be to try charming him and then "friendly" him to see if he warms up to you, but that's not based on any real information on my part.
If it helps, the alliance seems pretty optional to me. You'd miss some experience and a good movie if you didn't get through this, but I didn't notice the plot move after that like I thought it would.
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