So far you've managed to keep a neutral position in the conflict between the North and the South. Good. Both sides of the conflict recognize your presence now. Both are sending ambassadors, asking you to join their cause. Receive them and hear them out.
Here is what the two conflict sides offer if you support them: the North promises you some of their riches. The South offers workers, which isn't as good but they don't have as much. Either way, know that if you start fighting for one side, it means war!
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Next Quest: A Fragile Balance