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in which folder / file?
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There is a CD image in the games folder (game.gog + game.ins). You can mount or burn it, by making a copy of game.ins and renaming it to game.cue.
On the CD the text files can be found in ...\XLDLIBS\ENGLISH\ if you have installed the English version.
I think there was some tool to extract xld files, but you can see the text by just opening them with an editor.
Which language files the game is looking for is determined by the LANGUAGE value in SETUP.INI:
1 = German
2 = English
3 = French