I assume Nalia was taken by the government troops. Someone should have approached you immediately to tell you the betrothed(guy who want's to marry her) is not clean and can be revealed. CHECK YOUR JOUNAL.
Go to the lower end of the docks and there should be a sailor. (name is in journal). Then go into the Tavern in the Docks and threaten another drunk sailer in giving you half the evidence to convict the guy who arrested Nalia (Roenell is his name?). Then goto the Gov. District and goto Roenell's house to find the smuggling transcripts.
Goto the Gov Building and report this to the Army's Leutanant. Nalia will be free!
REFER TO YOUR JOURNAL.
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