Despite the ongoing turmoil within Konoha, the scheduled negotiations arrived as expected. Nara Shikashige accompanied the Third Hokage to the agreed location.
Since this was a negotiation, the location had to be somewhere neutral and safe, as neither side could predict if the other would suddenly resort to violence. They chose a site midway between Konoha and Sunagakure camps—the most sensible option.
Both sides brought only a few people. Once at the negotiation spot, the guards stayed behind, and the Third Hokage proceeded forward with Nara Shikashige. Chiyo advanced with Ebizō, the siblings walking side by side.
"Chiyo, long time no see," said the Third Hokage. Konoha had emerged victorious and held the upper hand, so he smiled at this longtime adversary, despite their longstanding rivalry. Though they had similar roles, their status wasn't quite the same. The Third Hokage was the leader of Konoha, while Chiyo was merely a member of the Sunagakure Council of Elders.
Chiyo snorted coldly, giving the Hokage a hard stare. "If we're here to negotiate, spare me the pleasantries. Let's get on with it."
"Please, be patient," replied the Third Hokage, unperturbed by Chiyo's hostility. He understood that being pushed into peace talks left Sunagakure bitter. Given their situation, who could be in a good mood? Konoha held all the leverage; it was unrealistic to expect those who were forced into this situation to be all smiles.
Chiyo watched the Third Hokage curiously as he lifted his hands to form seals. What was he doing? Ebizō immediately stepped in front of his sister, prepared to defend her against any sudden attack.
Shikashige merely glanced at the Third Hokage, calm in the knowledge that his leader had no intention of aggression—he was simply preparing a jutsu to facilitate the talks.
The ground began to tremble. With a rumbling noise, two stone chairs rose from the earth, followed by a square table between them.
"Please, have a seat," said the Hokage. He sat first, gesturing for Chiyo to do the same. Chiyo, after patting Ebizō's shoulder to calm him, also sat. Ebizō, still cautious, stood behind her, eyeing the Hokage carefully. In his view, Shikashige was just there for strategic advice—the real threat was the Hokage himself, a shinobi known for his proficiency in every type of jutsu. Though he had not fought in many years, he remained dangerous.
Chiyo's demeanor remained cold, in stark contrast to the Third Hokage's smile. She got straight to the point. "Hokage-sama, let's skip the pleasantries. I represent Sunagakure in these negotiations. We admit defeat in this conflict and are ready to sign a peace treaty. But Konoha must unconditionally release Rasa. I do not want Rasa subjected to interrogation or any mistreatment."
These were her baseline demands. An untouched Rasa was far more valuable than one who had been compromised. That was why Chiyo was so eager to propose negotiations. They could not afford to lose Rasa—he was pivotal to Sunagakure's future.
"Naturally," responded the Third Hokage without hesitation.
Without Rasa's capture, the war could have dragged on—something the Third Hokage wanted to avoid. Ending the war quickly was in Konoha's best interest.
Hearing his swift agreement, Chiyo's tense demeanor relaxed slightly, and the heavy burden she carried lightened. "Once the peace treaty is signed, Sunagakure will proceed quickly," she continued, "but I also have a few conditions that I must present on behalf of my village."
"Please, go ahead," replied the Hokage. He seemed at ease, though the notion of a defeated party setting conditions was strange.
After carefully considering her words, Chiyo began. "Hokage-sama, you are aware that since the Second Shinobi War, Sunagakure has been burdened with heavy war reparations, which have hindered our development. Our village has been forced to cut down on the number of active shinobi. If this continues, Sunagakure will fall into a stagnation we cannot recover from."
"So, you want Konoha to reduce the war reparations?" The Hokage raised an eyebrow, surprised at her boldness.
The reparations from the previous war had indeed placed Sunagakure in a financial straitjacket—a well-known fact. Unless they could address their obligations, Sunagakure would never see growth. They couldn't even maintain their current ranks without reducing the number of shinobi they employed.
Chiyo shook her head. "No, not a reduction—complete elimination."
"Excuse me?" The Third Hokage blinked, then sprang up from his chair, disbelief etched across his face. "You want Konoha to completely eliminate all reparations?"
Was Chiyo out of her mind, or was he himself hearing things incorrectly? Such a condition was beyond audacious—it was preposterous.
Behind Chiyo, Ebizō looked uncomfortable, while Shikashige was simply stunned. Sunagakure was truly asking for the moon here. As the losing side, they were supposed to offer concessions, not demand them—especially one this immense. Such audacity risked everything.
Chiyo's face remained serious. "Yes, complete elimination. Not only for the reparations from the Second Shinobi War but also for any reparations from this current conflict."
"..."
The Third Hokage was momentarily speechless, struggling to suppress his incredulous laughter. "Chiyo, do you seriously think I would agree to such terms?"
Chiyo wanted Konoha to unconditionally release Rasa, and on top of that, forgive every war debt that Sunagakure owed? Did she think Konoha was a charity, or that they had money to burn?
The Hokage glowered, his previous smile nowhere to be seen as he sank back into his chair in silence. He had no desire to waste his breath arguing. Such negotiations were pointless—they might as well call it off and return to battle. Better to let war decide.
Chiyo had expected this reaction and remained calm. It was a good thing the Hokage was older now. If she had made such demands of a younger, more hot-headed leader, he probably would have flipped the table and stormed off by now.
After seeing the Hokage's reaction, Chiyo pressed on. "If Konoha agrees to eliminate all reparations, Sunagakure will sign a long-term peace treaty and an alliance treaty—a firm alliance between our villages."
"Absolutely not!" the Hokage snapped before she could finish her sentence.