Now I know it for sure, I have done some checks with known values... and SJ you are (partially) right:
If e.g. race 2 has got physics 2, then the trade fails completely.
If race 2 has not got physics 2, then the "give package" of race 1 is gifted to race 2, and race 1 gets physics 1 + physics 1 which is worthless.
@phoenix-d: Hey, if you can scam the AI, shouldn't the AI be able to scam you? <
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I agree.
@gryphin: Yes, it works for the basic techs, but level 2 and above seem to be a problem.