McLeod is killed by one of Fu Manchu's men during a robbery attempt, after McLeod kills one of Fu Manchu's men. When that fails, an emissary offers to trade Barton for the priceless artifacts. Despite Terry's misgivings, Sheila persuades him to take the relics to Fu Manchu without Smith's knowledge. However, when Fu Manchu tests the sword, he determines that it is a fake (Nayland had switched them). Terry is whipped under the supervision of Fah Lo See, who is attracted to him. Meanwhile, Fu Manchu has Barton's corpse delivered to Sheila. When Nayland tries to rescue Terry, he is taken captive as well.