Cyr., 4., 2., 3

οἱ δὲ σύμμαχοι αὐτῶν ὡς ἀθύμως ἔχοιεν καὶ ἀπολείποιεν,
this ὡς has the meaning of ὅτι that, hasn’t it?

Yes, ὡς introducing indirect statement here