To please Princess Fragrance, Kin-lung builds a Hui village inside the

Palace. The Princess remains indifferent. .

The Empress Dowager learns of Kin-lung's infatuation towards the Princess

and orders to have her killed. Kin-lung comes in time to stop the execution

and angrily takes her away:

From the jade that the Princess is carrying, Kin-lung learns with indignation

of her devotion to Ka-lok. He talks Ka-lok into giving up the Princess,

in an exchange of his imminent action of a coup de'tat.

Ka-lok begs to see the Princess for the last time. He takes her for a

tour round Peking and tells her honestly of the situation. The Princess

is bitter, but is willing to do what Ka-lok says.