Unicorn Empire

I've only completed the second mission so far. While it's still fresh in my mind, I'd like to ask a few questions. The secondary objective states: "Don't encounter the dwarves, and you'll be rewarded." Is there a way to modify this objective? In my opinion, it's impossible to complete. I tried to avoid the dwarves, and some of them were even afraid of my Varen and didn't come close. Then, a bearded man named Helmar arrived with his equally bearded companions and gave Andrew a beating right in Lake City. Andrew was just sitting quietly inside the city walls and wasn't even paying attention to their gathering. It was disheartening. I had to reload, regroup, equip Varen with all sorts of trinkets, and personally give Helmar a taste of his own medicine. And after that, diplomacy was out of the question. Another point: On the map (mission 2), there are many decent and useful items. You collect and collect, and by the end of the mission, you have a complete set of equipment that fits perfectly, only to find that in the third mission, you're back to being practically naked. It's frustrating. Is there any way to keep the items you've acquired through hard work and use them in future battles?