Overview: The war breaks out and Prince YAU is being besieged. CHAI has no idea whether he should sign a peace treaty or go on with the war. Being so doubtful as to what to do, CHAI turns to LAI for advice. LAI points out that Lord of Chai is only trying to show his power and has no intention of causing bloodshed. CHAI puts the blame on CHI as he believes that it is she who has stirred up the political discord between him and Lord of Chai. CHI comes to vent her anger on SZE but CHAI arrives in time to stop her. He says that CHI’s jealousy is not forgivable for it has triggered a bitter political row and even put Prince YAU in danger. SZE tries to intercede for CHI and CHI is finally spared punishment. SZE has made two little brocade bags, one for LAI and one for herself. CHAI grabs SZE’s brocade...