It means that even though the battle was won, it was so expensive in terms of men and material that the battle might as well have been lost.
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It means, "Hello my dear/sweet."
Dear Air Commodore (Name)
(Dear) [rank] [name]
It would be appropriate to write, Dear Council Member J. Smith:
E2020 sucks, World History Semester 1? Oh dear Lord it's the worst.