I have not used it yet!
In the Preferences on the Main Menu icon, the default is Governor off, so in the Preferences one has to turn it on in the first place or the Governor does not work!
Anyway, I have not used it yet, since one can either right click on the city or Shift-Left Click to bring up a screen to change what is produced.
Otherwise, I just do not know, yet! There are a few bugs in the game, yet also!
Establishing embassies is done by clicking on the star in the right hand side of your capitol city info just below the city and giving some money to a Civ you already have made contact with.
Just found that out!
Double clicking on the other player's capitol city, just opens up the diplomacy screen......