I guess I need to apologize, wear the pointy hat, and stand in the corner for a while.
Before I wrote that post, I thought about the legal status of slavery as used in Elite, where you have planetary governements of different types, allowing or prohibiting slavery accordingly. Whereas in Privateer, there is not much to see of the planets and respective governing bodies as well (except the military presence of Confed).
So I was led to the conclusion that the Gemini sector is not fully under the jurisdiction of the Conferderation, or "part of" Confed. From the player's perspective, the people you meet present an understanding of "us" and "Confed", a certain air of distance to the official powers. It all added up to the question: Is Gemini a true frontier, and Confed is trying to make it part of the Confederation? If so (and by the presence of "independent non-government agencies", such as Roman Lynch, if thought to have some confirmation), then the presence of militia and the struggle of Confed's law enforcement seemed a bit questionable. The presence of a large university is a bit strange under the circumstances, too - but would fall under the "independent agencies" category.
But now that you say it, I do remember Governor Menesch in RF (but I also seem to remember that you had to hunt him down, because he turned out to be a criminal). So there is an official hold of the Confederation on Gemini, making all its inhabitants confederate citizens - and also instituting Confed as the legislative, judicative and executive force.
But, heck, I don't see the people live it. Granted, it may be only the people you meet when you follow a privateer lifestyle.