can't activate new Chiyo scene. she says there is nothing more to talk about.
You meet Varea first during the main story line at the borken fort in Amagal, after which she is in Manastyr, the captial of Amagal . She's shortly at other locations as well later but in the end of the current story line she stays in your castle. You need to reach that end of the story line for a dialog with Chiyo to trigger then mentioned event with Varea.