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I think it's the anti-evil thing going on there. He didn't know Gandalf was White now, but he obviously wanted this magical Oliphaunt parade to be flashy and aesthetically pleasing (not that it could actually happen). He just chose white because it seemed like an appropriate color for a mumak other than grey.
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"What mortal feels not awe/Nor trembles at our name,
Hearing our fate-appointed power sublime/Fixed by the eternal law.
For old our office, and our fame,"
-Aeschylus, Song of the Furies
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