James Dorr the Deputy Leader of Island Government and his wife Felicity are unhappily married. The imminent threat of German invasion gives Felicity the excuse she needs to leave the Island and return to England.

After her husbands funeral Felicity Dorr refuses the custom of Germans in her shop. When the Lieutenant Walker finds out he strews her floor with food and makes her lie face down in the mess insisting she serve Germans.

Philip and Eugene are now stuck on the Island. Wilf has hidden the German Landsers body, which was a vital move due to the German threat of 10 dead villagers for every German killed. Kathleen's brother Sheldon is concerned that his sister is harboring fugitives, and due to his newly made German connections is able to acquire a car and transport them to another farm.

Eugene La Salle is executed for spying. Philip Dorr witnesses his death, as he is posing as Mr Brotherson and working at his parents house. James Dorr is disgusted with the execution as is the whole island. Later that night the Baron and Mr Dorr come to blows when the Baron is rude to Felicity.

Eugene la Salle's parents visit the spot where he died but are moved on by the Baron. The Baron takes a liking to Philip Dorr, little knowing he is an English spy.

June is singing at the 50/50 club where a German Officer accompanies her on the piano. A local boy accuses her of being a collaborator and throws a glass at her. She is hit in the face. June goes to the photo shop and discovers her sister is in love with Bernhardt. Walker finds the man responsible for hurting June and beats him to death with the butt of a pistol.