Unreasonable demand? There are plenty of scenarios that could be painted where thousands of lives would be on the line...
Saying "it is critical that nobody knows about this" is not an unreasonable demand if it ensures the saftey of people's lives.
If the church believes that it "knows better" and must be informed on all political/military activities within the kingdom, so that the church (in its wisdom) can influence things to ensure "good" for all of the kingdom... and the King believes that the church shouldn't know something, then the LG paladin runs into a problem.