"I haven't heard of halflings, and the dwarves vanished centuries ago, but yes, of course. We have several races of elf - including orcs, though they dislike acknowledging that. To say nothing of the Khajiit and Argonians - cat and lizard folk." He'd call them by their proper names if any were present, but he can get away with it here and more to the point, she wouldn't understand otherwise.