The chief turns out to be an elderly Dark Dwarven woman with one missing eye. She clearly isn't in great health, and Cain is a little worried that the news might be too much for her.
"Are you alright? Is there anything I can do to help?" He asks, before noticing a notification from the system interface, asking if he wants to set the villagers as friendly targets by default.
That would let them benefit from the healing aura of the Legendary Forest Dragon, which can take care of almost any form of malady, though Cain isn't sure the aura alone is enough to regrow an eye or a limb.
"I'll be fine dear. You don't get to be my age in the border without seeing a fair few battles." The old woman answers, giving Cain a toothless grin.
That settles it.
[Villagers of the Iron Empire set to friendly by default. Status will be canceled by any hostile action.]