"Lord Hakushi, we've received intelligence from the Hidden Mist Village."
The staff of the Intelligence Department routinely reported recent intelligence to Hakushi, among which was information concerning the Hidden Mist Village, something the department's staff took very seriously.
"What has happened over there?"
Hakushi pondered for a moment before asking.
The Land of Water, isolated overseas, has long adopted an isolationist policy within the Hidden Mist Village, with very strict management of both entry and exit.
It was only with a letter from Witch Mire to the Daimyo of the Land of Water, using the excuse of international diplomacy, that Shion Flower Pharmaceutical Company was nominally allowed to open a branch within the Hidden Mist Village.
This involved necessary gifts to win over the Daimyo and numerous high-ranking nobles of the Land of Water.
Otherwise, it wouldn't be so easy to infiltrate the Hidden Mist Village with personnel.
The extent of this village's exclusiveness is simply beyond the imagination of outsiders.
During his time in Konoha, Hakushi had also learned some information about this village, but back then, although the Hidden Mist Village was exclusive and closed, it was not to this extent.
Anyone entering the Hidden Mist Village was under the 24-hour surveillance of Hidden Mist Anbu Ninja, and the information gathered was typically fragmented.
Furthermore, neutral personnel from the Land of Demons were permitted entry only once a month. Exceeding this would result in forced detention, as stipulated strictly in the agreement.
"There seems to be a significant power shift within the Hidden Mist Village. Although it's uncertain who is behind it, for the past month, those stationed in the village have frequently heard sounds of battles at night. Fights often occur even outside."
If it were an occasional incident, it could be dismissed as an intrusion by external forces.
But to hear battle sounds every night would be an indictment of the Hidden Mist Village's inability to remain one of the Five Great Ninja Villages if it was due to external intrusion.
Clearly, this is an internal conflict among the Hidden Mist Ninja. Some excessively intense conflict led to factional disputes, resulting in a tragic internal slaughter within the village.
"What is the specific cause?"
"Based on current intelligence, it might be linked to this year's April graduation exam at the Ninja School, which intensified the conflict."
"Are you referring to the 'Demon Incident'?"
Hakushi nodded.
A graduating student from the Ninja School named 'Momochi Zabuza' killed all of his classmates in this year's graduation exam, with only he graduating.
At that time, not only Hakushi, but other villages likely also received this intelligence, perhaps even gloating over it.
In recent years, the Hidden Mist Village adopted an exam where students form pairs to fight each other, the victor graduating from the Ninja School.
This led to the legend of the 'Blood Mist Village.'
According to most ninja impressions of Hidden Mist Ninja, they are often described using terms like 'fierce,' 'brutal,' and 'bloody.'
Although the number of ninjas was somewhat reduced, those Hidden Mist Ninja who survived are elite, quick to draw blood, and considered ninjas among ninjas.
However, this year's unexpected result of only one graduate couldn't leave even the 'elite' route of the Hidden Mist Village's high officials indifferent.
This likely spurred various debates and opinions regarding the incident.
As far as Hakushi knew, not all high-ranking members within the Hidden Mist Village favored the 'Blood Mist Village' title. This year's incident likely exacerbated the conflicts.
The internal struggle within the Hidden Mist Village probably seized this opportunity for factions to thoroughly break ties.
One faction wants to continue the 'Blood Mist Village' policy, while the other wants to abolish this unreasonable exam method immediately.
But due to Hidden Mist Village's always secretive nature among the Five Great Ninja Villages, Hakushi could only ascertain this much.
Further information can only be gleaned from the Hidden Mist Village's subsequent actions.
"Tell those stationed in the Hidden Mist Village not to act rashly and focus on their duties."
"Understood."
After the staff of the Intelligence Department left, Hakushi pondered deeply.
The Hidden Mist Village's exclusionism was worsening, and sooner or later, those stationed there would certainly be driven out, even with assurances from the Daimyo and the high nobles of the Land of Water.
Moreover, the annual guarantees to the Daimyo and nobles of the Land of Water were not insignificant.
If not for planting some pawns within the Hidden Mist for more information, he wouldn't bother associating with the noble class of the Land of Water.
According to Hakushi, the Hidden Mist Village's current state wasn't unrelated to the continuous reduction in funding by the nobles of the Land of Water.
The Land of Water, isolated overseas, after participating in the First Ninja War, has since retracted, with sparse relations with mainland nations.
This resulted in a situation where Hidden Mist Ninja had hardly any scope for action.
Unlike Konoha, the Land of Fire is surrounded by threats on all sides, so the annual development funds given to Konoha by the Daimyo are enviable figures for other Ninja Villages.
However, the development of the Hidden Mist is hindered by the reluctance of the Daimyo and nobles of the Land of Water to bear the heavy military expenses. For them, just maintaining the status quo without expansion and safeguarding the homeland is sufficient.