"Fact" in relation to a subjective relationship again. The doctor means that Charles Gould is too idealistic for the moral degradation of Costaguana. Unbeknownst to him, he is right in the opposite sense: Charles Gould is now too amoral for the climate of passionate idealism that is Costaguana.

Ironically, Charles Gould will no longer live in Costaguana; he will live in the Occidental Republic, the nation of the material interests that is much more amenable to his amorality.