During the defeat of the New State Army in the Second Battle of Muse City, the Highland Army exploited the situation by invading and annexing the Matilda Knightdom. This battle pitted the 25,000 soldiers of the New State Army against the 55,000 strong Highland Army.
With the Highland Army holding the advantage, Shu attempted to decrease the Highland advantage by ordering General Kiba to attack eastern Muse Principality while the majority of the New State Army would march on Rockaxe.
Although General Kiba would be killed in eastern Muse, fighting with the army of Leon Silverberg, this would allow the New State Army to capture Rockaxe Castle and burn the Highland flag, affecting the morale of the Highland Army and allowing the New State Army to declare victory in the battle.
- Genso Suikoden Encyclopaedia (ISBN 4-575-16297-3), page 321