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enri is arrested but tells Agnes that the only reason he went to Germany was to find his old lover Valerie. Agnes tells Grove she believes Henri has been set up by the jealous Thackeray, who is forced to admit it. Henri, after being accused of theft in New York went on the run. Rose is concerned that she cannot get in touch with Harry and learns from Delphine that he is in Germany, spying on their manufacturers. An envious Grove warns Miss Mardle that she and Florian could become victims of gossip but she does not care - unlike Grove Florian has declared unconditional love for her. Loxley is in trouble when boots manufactured for his contract with the military board are found to be shoddy and he is accused of being a war profiteer. However Loxley tells Edwards that the real culprit is Harry, whose visit to Germany makes him appear even more suspect and Edwards, desperate for a scoop, is willing to print this, to Kitty's disgust. Meanwhile Lady Mae decides to leave her husband and comes to tell Rose the truth but she is not a welcome visitor and is rebuffed by Rose.

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