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Agreed. The Empire was literally about to beat the Thalmor, they had the Thalmor army crushed and routing. But they still signed the White Gold Concordant. Had Titus Mede II not caved in and pursued the remaining Thalmore soldiers, the war would have been won. There were only three groups that really made a difference in the war. The Imperial legion, the Nord Legions, and the Red Guard legions. If they had perused, the war would have been over.
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Wait what? The Empire was about to lose. The Nords wanted to continue fighting even if it meant death, hence the outrage.
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No, the second battle of the Niben was very much going in the favor of the Empire. Red Guard forces were able to make their way to the Imperial City and surprise the Thalmor forces. The Thalmor army was almost entirely destroyed, and the Imperial army badly crippled. The Nords were still in fighting shape, but the order to peruse was not given. The Thalmor general was hung off the side of the White Gold tower for a week before disappearing. In all honesty, the Imperial army kicked the Thalmor's ass, they just did not end it, they signed the case fire, which was a mistake.