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I understand that improving roads will increase population, decrease time to get new developments, and increase initiative for troops moving in the country. What I'm wonderring is if one's opponent can utilize the roads to increase their units intiative or if this applies only to the "home guard"? That could be a mixed blessing if your opponent can travel much more quickly because you've developed a nice interstate highway system for your country!
Anyone have information on this?

It would be pretty damn cheesy if an improved road system didnt work for enemy troops just as well as for your own.

Not necesssarily. Mapping back then wasn't necessarily the best. Obtaining information about local routes, finding guides, would undoubtedly add a lot of working on the planning of troop movements.
I don't think, even with the best of planning, France could move as quickly in far off Russia, or Turkey in comparison to their moving troops in their own country! To me it would actually be "pretty cheesy" that my opponent would be able to move as quickly and efficiently in my home territory as I would be able to!
So, I think knowing whether one can utilize roads to move your own troops as quickly as your opponent is a very valid question!

The factors you are talking about such as needing accurate maps, local intelligence, etc is a given, but ironically intimate knowledge of "local routes" becomes less necessary the more developed your road system is. Bottom line is a well developed road system is certainly going to help an invader move through your country at a higher speed.

If I was a Canadian General and I invaded the United States I could make really good time from the Canadian/US border to Los Angeles, assuming I could defeat the military obstacles, just by using a captured map and staying on I-5 Southbound.

Whether or not there is a penalty for operating in enemy territory, better roads is going to make each side capable of faster movement and foreign troops ought to receive a bonus when traveling on said roads.

PS Check the nofrills thread. I found a post from Kingmaker regarding turn merge. Try merging again following his instructions in that post.