Both were ground down. It's not like they had spies feeding them intel. The Blades were dead and gone and White Gold was just taken back.
The truth of that assertion can, of course, never be known. But the Redguards should not forget the great sacrifice of Imperial blood - Breton, Nord, and Cyrodilic - at the Battle of the Red Ring that weakened the Dominion enough to allow the eventual Second Treaty of Stros M'kai in 4E 180 and the withdrawal of Aldmeri forces from Hammerfell.
The Empire doesn't care my ass.
After the heroic efforts of the Nords, Imperials and Bretons, even admittedly Titus Mede himself, the Empire finally took back the Imperial city. After this happened, the Empire signed the infamous White Gold Concordat, which would 1. Outlaw Talos Worship, and 2. Give away almost Half of Hammerfell to the Thalmor (admittedly already occupied by the elves.) While the Empire themselves could not afford to fight on, neither could the Thalmor. I used to believe that they could not know the Thalmor were as weak as they were, but the Great War book states that the info in the book was taken from the Thalmor themselves:
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Author’s Note: Much of what is written in this book is pieced together from documents captured from the enemy during the war, interrogation of prisoners, and eyewitness accounts from surviving soldiers and Imperial officers.
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And the book clearly states:
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In 4E 174, the Thalmor leadership committed all available forces to the campaign in Cyrodiil, gambling on a decisive victory to end the war once and for all.
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This means the Empire had a good idea of the Thalmor’s state, but bought into their bluff anyway when they signed the White Gold Concordat. The Redguards of Hammerfell did not wish to give up their land so easy and wanted to fight on. The Empire instead of at least giving supplies to the Redguards or some kind of non combatant support instead just completely dropped Hammerfell as a province. They say they were forced, but the Thalmor, as they apparently knew, could not force anything.
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The Thalmor wouldn’t be in any position to assault Cyrodiil for sending supplies even if they wanted to. You may be thinking that the Empire would need those supplies to rebuild, and you’d be right. But the cost of a whole Province being lost is greater than at least meager support of military supplies so Hammerfell could defend itself, and take back it’s land. Now the Empire is out yet another Province, and they only have two, not counting Cyrodiil.
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To reiterate:
"Much of what is written in this book is pieced together from documents captured from the enemy during the war, interrogation of prisoners, and eyewitness accounts from surviving soldiers and Imperial officers."
K, now read this.
"In 4E 174, the Thalmor leadership committed all available forces to the campaign in Cyrodiil, gambling on a decisive victory to end the war once and for all. During the spring, Aldmeri reinforcements gathered in southern Cyrodiil, and on 12th of Second Seed, they launched a massive assault on the Imperial City itself.”
Now, there’s no way survivors or eye witnesses could know the info in the second quote, so that means they HAD to have gotten the info DURING the war, as the book said they did, because that is the only time they’d have access to prisoners, and that’s when they would have discovered their documents. This means the Empire KNEW how weak the Dominion was and they still caved.
http://colonelkillab...l-and-governing
All they had to do was say no, and they'd have ended the war unofficially like north and south korea, with border tensions at best.