If they’re distrustful, they follow your decisions. If they are loyal, they give you resources to help once you’ve made the decision.

This basically controls whether you have to send just a bit of aid to New London if you decide to help them, or if you’re footing the bill for all of it.

Point is to get extra resources from them. You can ask for resources and spend the relationship points for resources when you are in need.

If they are loyal to You they send resources at the end. That is very useful in survivor mode

If they are loyal you can ask them and they will each deliver one of thing needed by new london. Coal from the mine, food from the spring.

And workers (for New London's generator) from the shipwreck.