The Japanese extorts benefit from the new General with the fight as an excuse. KONG suggests to cease the most important street to the Japanese for compensation. This could then strengthen the Japanese power in China. HUNG cannot tolerate anymore, he confronts against the Japanese for the sake of the Chinese people. YEE admits HUAN to be her half. However, HUAN only loves CHING. HUAN refuses YEE. YEE suffers a great blow. In another aspect, CHING also refuses HUAN as HUAN had hurt her for a few times. She does not believe in HUAN. CHING even decides to leave the town. HUAN insists on waiting CHING to change her mind.