In The Wounded, Admiral Haden tells Picard that peace with the Cardassians must be maintained, because the Federation is in no position to enter a new sustained conflict (presumably due to the then-recent ship losses in the battle of Wolf 359).
In Picard’s earlier log, we learn that the Federation and Cardassia have been at peace for over a year, which probably means that the truce was made after the Enterprise’s first encounter with the Borg, and before Wolf 359. We also know from the later show Deep Space Nine that the Cardassian Empire still had a fairly brutal occupation of Bajor going on at the time, and the episode itself shows that
the Cardassians probably still had anti-Federation military preparations going on, despite the supposed truce.
Is there anything in the show — or failing that, other materials — that suggests the Federation was prompted to make peace with the Cardassians because of its knowledge that the Borg were likely to attack soon?