At the military academy, the young Redl soon stands out for his talent, drive and loyalty to the Crown. One of his teachers forces him to inform on Kristof Kubinyi, a student who is the subject of a practical joke; whilst he blames himself for incriminating his comrade, Alfred soon realises that to rise in the ranks he must overcome his peasant background by ingratiating himself with his superiors. Alfred and Kristof become firm friends. Kubinyi invites Redl home for the holidays to the elegant residence of his parents, who lead a life of privilege and nobility in Hungary. There, Alfred meets Kristof's pretty sister, Katalin, who welcomes him warmly. To Kubinyi's aristocratic parents, Redl hides his true humble background, pretending to be of Hungarian ancestry and a member from an old family who lost all its fortune.