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It's really rather hard to determine. On the one side, we do seem to have the more powerful technology, but don't forget the psychic abilities of the Mudokons. Mind-control could turn any potentially battle to their favor.
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Yes, but consider the fact that our ambasadors would allie with the mudokons, because we wouldn't force them into labor like the Industry gluks do.
Remeber the saying 'The enemy of my enemy is my friend'