Later on in Chapter I, if Geralt chooses Iorveth's path, the non-human district is burned and the non-humans massacred. Geralt is told that Einar Gausel collaborated with Loredo and betrayed his race. However, Margot's letter to Iorveth says different, stating he only yields to Loredo as much as is neccesary.
If Lobinden's nonhumans had been organized as a community, the dwarf Einar Gausel would have been the closest thing to its leader. Though the Scoia'tael considered him a collaborator on a human leash, Einar tried to represent the nonhuman minority as best as he could, even if that meant mediating between its members and the commandant. Furthermore, he ran something akin to a bookshop. Given its location in what was a complete backwater, his selection of titles was quite impressive.
In addition to being a well-informed bookseller, Einar Gausel was also an accomplished barber. In discovering this, Geralt learned of the only person in Flotsam who would be able to do anything about his hair.