Shouldn't that be in the race-specific tech tree (e.g. VargasilTechDefs.xml) instead of the general TechDefs.xml? At least, that's how it is for the corresponding Krynn tech. Other than that, it looks fine to me. Just make sure that the DisplayName and the Descriptions are defined somewhere (e.g., VargasilTechDefsText.xml).
The Krynn Consulate improvement has "ConversionTech" as tech requirement, which is the GenericName of both your tech and the Krynn original. I can see two ways for you to fix this:
1. Change the DisplayName of the Krynn Consulate in the ImprovementText.xml to something more generic.
2. Make your own version of the Krynn Consulate. To do this, you need to change the GenericName of your tech to something else (so it doesn't unlock the standard Krynn Consulate anymore), make a copy of the Krynn Consulate with this new tech as the requirement, and define new entries for the DisplayName and Descriptions of the improvement in the ImprovementText.xml. The new improvement would look something like this:
<Improvement>
<InternalName>VargasilConsulate</InternalName>
<DisplayName>VargasilConsulate_Name</DisplayName>
<ShortDescription>VargasilConsulate_ShortDec</ShortDescription>
<Description>VargasilConsulate_Dec</Description>
<Icon>KrynnConsulate.png</Icon>
<BuildIcon>KrynnConsulate_Build.png</BuildIcon>
<ListIcon>KrynnConsulate_Icon.png</ListIcon>
<ImprovementType>Influence</ImprovementType>
<SecondaryType>Approval</SecondaryType>
<PlacementType>Influence</PlacementType>
<IsColonyUnique>true</IsColonyUnique>
<!-- Stats -->
<Stats>
<EffectType>ManufacturingCost</EffectType>
<Scope>Queue</Scope>
<Target>
<TargetType>Improvement</TargetType>
</Target>
<BonusType>Flat</BonusType>
<Value>30</Value>
</Stats>
<Stats>
<EffectType>GoodsAndServices</EffectType>
<Target>
<TargetType>Colony</TargetType>
</Target>
<BonusType>Multiplier</BonusType>
<Value>0.25</Value>
</Stats>
<Stats>
<EffectType>InfluencePerTurn</EffectType>
<Target>
<TargetType>Colony</TargetType>
</Target>
<BonusType>Multiplier</BonusType>
<Value>0.1</Value>
</Stats>
<Stats>
<EffectType>Maintenance</EffectType>
<Target>
<TargetType>Improvement</TargetType>
</Target>
<BonusType>Flat</BonusType>
<Value>0.25</Value>
</Stats>
<!-- Triggers -->
<!-- Level Effect Trigers -->
<!-- Level Effect Stats -->
<LevelEffectStats>
<EffectType>GoodsAndServices</EffectType>
<Target>
<TargetType>Colony</TargetType>
</Target>
<BonusType>Flat</BonusType>
<Value>1</Value>
</LevelEffectStats>
<LevelEffectStats>
<EffectType>InfluencePerTurn</EffectType>
<Target>
<TargetType>Colony</TargetType>
</Target>
<BonusType>Multiplier</BonusType>
<Value>0.05</Value>
</LevelEffectStats>
<!-- Adjacency Bonuses -->
<NeighborBonuses>
<GiveBonusToNeighborType>Approval</GiveBonusToNeighborType>
<NeighborBonusValue>1</NeighborBonusValue>
</NeighborBonuses>
<NeighborBonuses>
<GiveBonusToNeighborType>Influence</GiveBonusToNeighborType>
<NeighborBonusValue>1</NeighborBonusValue>
</NeighborBonuses>
<!-- Prerequisites -->
<Prerequ>
<Techs>
<Option>VargasilConversionTech</Option>
</Techs>
</Prerequ>
</Improvement>