Chen Hsiang takes Annie home and on the way comes across Lin Tse-hsu. Lin learns about Chen Hsiang's relationship with Tsai Fu and persuades the two to join his farce in resisting the foreigners. Chen Hsiang agrees. However, Tsai Fu still cannot forget the past about the Ching Court eliminating the Shaolin pupils, thus when Chen Hsiang, accompanied by Lin's man, invites him to join Lin, Tsai Fu rejects, rebukes Chen arid forbids him to get along with Lin. To show his sincerity, Lin Tse-hsu asks Hao-nien to give to Tsai Fu a coral bead granted to him by the King. Tsai Fu is moved and decides to work with Lin. The King dissatisfies with Lin's delay in reporting to him and rids him of his post. Later, the King orders to release the blockade of the harbor to befriend the foreign army. Yi Chen is anxious to avenge his father……