Fifteen years pass as Kayama and Manjiro dress themselves for tea. As Manjiro continues to dress in traditional robes for the tea ceremony, Kayama gradually adopts the manners, culture and dress of the newcomers, proudly displaying a new pocket watch, cutaway coat and "A Bowler Hat". Although Kayama, as stated in his reports to the Shogun, manages to reach an "understanding" with the Western merchants and diplomats, tensions abound between the Japanese and the "barbarians". Three British sailors on shore leave mistake the daughter of a samurai for a geisha ("Pretty Lady"). Though their approach is initially gentle, they grow more persistent to the point where they offer her money; the girl cries for help and her father kills one of the confused sailors. Kayama and Abe travel to the Emperor's court discussing the situation. While on the road, their party is attacked by cloaked assassins sent by the Lords of the South and Abe is assassinated. Kayama is horrified to discover that one of the assassins is his former friend, Manjiro; they fight and Kayama is killed.