The short rebuttal first.
Consulates are diplomatic offices set up by one nation in another's territory. So by that strict definition, it would seem that all involved consider Saran and the Solarian Empire separate entities, same as the Australia and the British Empire example mentioned above.
The longer commentary.
There's a fine line between cool creative names, and the names that are just so "whatever" that I don't even bother trying to remember them. Thus, I firmly disagree with the posters who, in my perception, keep harping on it.
If I read correctly, the "Treehugger" character is long dead. In all likelihood, he wouldn't play an even mildly significant role in most any game. After all, I wouldn't think that Al Capone or Robert Stroud were all that concerned about who built Alcatraz.
There shouldn't be a concern about pulling people a little bit away from the "fantasy." In fact, I submit that letting players get too involved in the fantasy aspects takes away from the overall social gaming experience. Who among us hasn't had a fellow player get overly dramatic after their character had some horrible fate befall them? And who among us didn't roll their eyes at their histrionics?
Stop whining, get up, go get a drink--grab me a beer while you're at it--and roll up a new character.
Creativity is all well and good, when it adds something to the game--Rasputin is fairly easy to remember, and unless one is clueless about Russian history (or doesn't know about Hellboy), then you have an idea of what you're up against. Ditto for Abigail, a name that evokes two first ladies and Dear Abby.
Conversely, those names that are creative for the sake of showing off... "All hail The High Prince of Glenlivet Nokia, the Grand Poobah of Gollum Golems, His Royal Majesty Therup <deep breath> Denpray the Fourth." Inevitably, I call them "Bad Guy."
A character name (player or otherwise) is just a little icing on the cake that is a game.
To those who are concerned about that, let me just cut it off the the top for you, and I'll take the rest of the cake for myself. Thanks.