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The An-Xileel were largely responsible for the Argonian Invasion, and subsequent occupation, of southern Morrowind. They stopped their advance in Morrowind decades ago after being driven back by House Redoran, and haven’t showed the slightest interest in doing anything since then. They have, however, prevented the Empire from reclaiming their territory.
According to the Imperial perspective, the An-Xileel "were entirely nativistic in their views, interested only in purging the former colonial influences and returning Black Marsh to whatever state they imagined it had been in before it was ruled by foreign powers."