The first efforts of the new monarch were of necessity directed towards an arrangement with the Ephthalites, whose signal victory over Perozes had laid the north-eastern frontier of Persia open to their attack.  Balas, we are told, employed on this service the arms and arts of an officer named Sukhra or Sufraii, who was at the time governor of Seistan.  Sukhra collected an imposing force, and conducted it to the Ephthalite border, where he alarmed Khush-newaz by a display of his own skill with the bow.  He then entered into negotiations and obtained the release of Firuz-docht, of the Grand Mobed, and of the other important prisoners, together with the restoration of a large portion of the captured booty, but was probably compelled to accept on the part of his sovereign some humiliating conditions.  Procopius informs us that, in consequence of the defeat of Perozes, Persia became subject to the Ephthalites and paid them tribute for two years; and this is so probable a result, and one so likely to have been concealed by the native writers, that his authority must be regarded as outweighing the silence of Mirkhond and Tabari.  Balas, we must suppose, consented to become an Ephthalite tributary, rather than renew the war which had proved fatal to his brother.  If he accepted this position, we can well understand that Khush-newaz would grant him the small concessions of which the Persian writers boast; while otherwise the restoration of the booty and the prisoners without a battle is quite inconceivable.

Secure, so long as he fulfilled his engagements, from any molestation in this quarter, Balas was able to turn his attention to the north-western portion of his dominions, and address himself to the difficult task of pacifying Armenia, and bringing to an end the troubles which had now for several years afflicted that unhappy province.  His first step was to nominate as Marzpan, or governor, of Armenia, a Persian who bore the name of Nikhor, a man eminent for justice and moderation.  Nikhor, instead of attacking Vahan, who held almost the whole of the country, since the Persian troops had been withdrawn on the news of the death of Perozes, proposed to the Armenian prince that they should discuss amicably the terms upon which his nation would be content to end the war and resume its old position of dependence upon Persia.  Vahan expressed his willingness to terminate the struggle by an arrangement, and suggested the following as the terms on which he and his adherents would be willing to lay down their arms: 

(1) The existing fire-altars should be destroyed, and no others should be erected in Armenia.

(2) The Armenians should be allowed the full and free exercise of the Christian religion, and no Armenians should be in future tempted or bribed to declare themselves disciples of Zoroaster.

(3) If converts were nevertheless made from Christianity to Zoroastrianism, places should not be given to them.