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I didn't have to give up any of the ground I started with, just called in a lot of arty and used Warriors and Scimitars to destroy individual bits of light armour. I did use the Javelins on the tanks, but only because I'd pushed some Scimitars forward and was worried about them if I'd waited the four minutes for air support. I got the impression though that the tanks had no effective night vision, as I had Warriors plinking away at them with no reply, so perhaps the Javelins were wasted.
The AI felt ok to me, but I'm not a great player! They did push through the lines but I cleaned them up with Warriors, and they almost got through the middle, but I think the bombardments slowed them down.
I think the only way to lose this one would be to push forward with your own forces. If Blue just waits for the Reds to come into sight the massive artillery selection wins the battle.
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Not sure how campaigns work, sorry!