@BoneyM, we've seen the elf ambassador who seemed to be a spellcaster (or who at least had interest in magical theory + excellent magical items + comes from a place where learning a bit of magic can be "part of the job"). Similarly, although Arsanil doesn't make a big show of it he is a spellcaster who regularly lives and works in the Empire.
Does this suggest that recruiting elves would be easier if their official job title wasn't "wizard", but was something like "ambassador from Lorelorn"? Would some bosses be more open to this sort of loopholes than others, or is it just "if they like Lorelorn elves they'll turn a blind eye, if they don't like those elves they'll raise a stink".