Why would Hegel ignore Fascist Rayne's actions if he didn't ban the Red Youth?

Currently doing a Fascist playthrough where I remained neutral, planned economy, allied with the NFP, signed all Anti-Blud bills, and am curiously trying to negotiate a trade deal with Valgsland. To my surprise, he wasn’t that stingy about Sordland's Far-Right direction. You’d think that an old man like Hegel, who’s seen the rise and fall of extremist ideologies, would know a Fascist from a mile away. It seems strange that a dedicated Socialist like Hegel doesn’t see the implications of allowing trade with Sordland just because Fascist Rayne allowed for a controlled opposition to exist.