LAN teaches kung fu in Shun Fung Lane. MONKEY is her first student. TOKUGAWA KAZUO has arranged a position for SHUI in the City Hall. TO makes things difficult for him the day he reports duty. KIU is handing out rice to victims of the rat plague. She invites SHUI to join her. On the day of the rice handout, KIU helps the victim who was earlier beaten by HANG. She is raped. HANG blames her for ruining her own integrity as well as his reputation. She is very upset. TO goes on a secret date with YEE-MUI. She hopes he can help her leave Guangzhou. LUNG takes very good care of LAN. Her students gossip about them. MONKEY reminds LUNG LAN is their teacher’s wife, and so he should never have any improper thought about her. The papers report on KIU’s rape. SHUI proposes to marry KIU to HANG immediately.