Agree. Characters have not entered battle until all of their abilities have completed, including on weapons they are holding. Therefore, you are not 'attacked' until the Character and its Weapon complete (even if banded in).
If Foreign Sword is used in the initial RA (or a band resulting from it pre-block), then it negates Tower and places it (and all contents) on owner's deck.
It actually doesn't matter in the end, though, because even if you could remove the EC and place it in territory (which you can't), that is part of Tower's ability, and would be negated by Foreign Sword. Everything would still happen as I described.