French prostitutes arrive for the Germans and obnoxious Lt. Flach,pretending to mistake her for one,interrogates Kathleen as to the spy's whereabouts but has to let her go as the Baron wants reasonable relationships between the islanders and their occupiers. Flach does,however torture and shoot Eugene,who dies giving nothing away. The Baron is regretful for the death of a young man. Bernhardt convinces Angelique that his feelings for her are genuine and they kiss. Zelda is less enamoured of Walker's pursuit of her and hides out with Cassie,who has been persuaded into a bizarre partnership with Wimmel and Sheldon to indulge in a little profiteering.