Tsai Fu is overcome by the sorrow that his good friend dies and vows to take revenge on Yi fang. After Lin Tse-hsu comes to the post, he blockades the harbour, forbids foreign ships to enter and forces the foreigners the yield all the opium. Yi Kang makes the excuse that he is struck by a sudden illness and helps the foreign tradesmen to pass. In order to take advantage of Cheng's status, Yi fang proposes to Hao-nien the marriage of Yi Chen and Annie. Hao-nien agrees but Annie is already devoted to Chen Hsi ang thus she makes objection to her father. Hsiao-hsuan takes risk to assassinate Yi Fang and is injured by his men. Chen Hsiang saves her and takes her to his room. Annie discovers the two and is infuriated thinking that they are a pair. Annie makes clear her position t o Yi Chen who reveals that he only loves Hsiao-hsuan. Annie then tells Yi Chen about Chen Hsiang and Hsiao-hsuan staying together in the same room for days……