The Emperor of the Eastern Empire announces that he will make war reparations to the kingdom of saga for the losses it has suffered in the war. He also announces that the empire will have to pay yearly ransoms of seven hundred gold coins to each of the kingdom's prisoners. Meanwhile, saga has seized the northern province of zillith and captured it. 200 of the Emperor's men personally traveled to the city to sign a peace treaty with the kingdom. The citizens of the city react calmly to the news of the arrival of the troops. The Emperor explains that the city is not the same as the city of Konstantin and that the more they try to force it by force, the more it will only cause them to sustain losses.