In your reply you once again offer to mediate some sort of agreement between the two.
Somehow, they arrive at your castle without managing to kill each other on the way.
8!*
You tell them that their dispute, once understandable per cultural clash, now have devolved into pointless bloodshed. You tell the Hurthling chieftain that it is important to pay taxes, even if it is against their traditions - and you tell the governor that Hurthlings have always been respecting humans since their settlement, and to repay that with oppression is just a stain on his honor.
You continue your talk for a while, and this softens their hearts.
"Noble hew-mon King is right!" The chieftain squeaks. "We have biin too stubborn in our ways, and we took yoor hospitality for granted!"
"I hath been too harsh toward these non-humans, sire. I apologize." You then help them reach an agreement, in which the Hurthlings will take the foodstuffs and livestock every year and sell them on markets near and far, collecting the tax money this way.
818 AD, Mid-winter
There is an outburst of joy amongst the courtiers when your elven wife goes into labor!
Then it turns into lamentation when the child is found to be a stillborn. Your wife is depressed and your mother infuriated at the loss of the child.
"Alas, sire." The advisor takes you out of Aolineniya's bedroom. "These things happen; sometimes the gods of family and life and fertility deem some children too weak to survive in the world, and thus end their struggle before it really begins. And, after all, Queen Aolineniya is an elf, and records of couplings between us humans and elves are seldom." He hums.
"Or, sire, perhaps it's just a matter of luck."
818 AD, Late Winter
The last of the festivals came to a conclusion, and governors' reports from around the kingdom indicate that the peasants have indeed been appeased with the extra venues that happened this year.
818 AD, End of the Year
The advisor brings the Scrolls of Kingdom Status during particularily rainy afternoon.
Happiness: 3
Population: 5
Economy: 2
Army: 5
"As you see, my liege, we're still struggling in the sector of economy, as unfortunately there were no opportunities to fix that this year. Raising taxes would only irate the peasants again, so the best advice I can gives would be to disband more of our troops."
A) A sad necessity, but let's shrink our army once again.
B) Nay! We will find some other way to rejunevate our economy.