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Great House Telvanni: This house is governed magocratically. Those with magic power may advance high in the ranks of Great House Telvanni, while those lacking in magical ability remain unimportant in House politics. Their great Wizard Lords are greatly feared Morrowind over, and have a just reputation for being atheistic, vicious, cruel, capricious, insane, evil, and, above all, powerful. They believe that might makes right and that power confers wisdom. Arguments are not settled through recourse to the law, but rather through magical duels to the death. If you won, your point was clearly the superior one. If you steal something and live, clearly you deserve what you stole. Despite this, many peasants actually enjoy life under the yoke of their wizard overlords. Because of their distance, they rarely bother to impose high taxes on the peasants, and are concerned with quiet and solitude above all else, and so enforce some semblance of law upon their underlings with extraordinary vigor. The Telvanni are a three-tiered society. At the bottom exist the slaves, fit only for servitude. They farm, mine, serve as house-servants and, when they are past their prime, as subjects of experimentation. Next up are the peasants, those Dunmer who display no magical power. They are, for the most part, safe from the wizards, who leave them alone for the most part. The Telvanni peasants are renowned as being the finest insect-breeders and perfumers in Morrowind. The Mages have already been discussed, and exist at the top of the Telvanni Hierarchy.
They are currently waxing in Morrowind politics, due to their rampant expansionism. Their only allies are the Dres, and they have extremely frosty relations with everyone else, almost to the point of enmity. They are detested by the Redoran and Indoril for being Godless, and detest them in turn for being fools. They are neutral to the Hlaalu, for the most part.