In the ship's bar, the Colonel, Gerald, and Louie realize they are all traveling for the same reason, and Gerald calls Colonel Larrabee a liar. Joan overhears and becomes angry with him, much to Jerry's dismay. Louie tries to get Eddie to hand over the cash by trying to bump him off by pushing him off the ship's deck in a wheelchair. The duo thinks they have succeeded in getting rid of Eddie, but they are foiled again. Eddie tries to help Jerry win back Joan, and suggests they rehearse a number for the ship's concert the next evening. They rehearse ("Your Head On My Shoulder"), but Joan is still frosty toward him. At the ship's concert, Jerry, Eddie, Dot, Joan, and members of the chorus perform a big minstrel show number featuring a specialty tap by the Nicholas Brothers ("Mandy N' Me"). The ship lands in Alexandria, Egypt, and Joan is still angry with Jerry. Eddie, still convinced that Dot is his mother and Louie is his uncle, wants to see a magician performing at the ship's port. When the magician taunts Louie and calls him a coward, Louie gets in the magic basket and ends up getting beaten by Egyptian slaves. Eddie chases a little dog running through the marketplace and lands literally in the lap of the sheikh's daughter, Princess Fanya, who falls instantly in love with Eddie. She forces him to come with her back to the palace, where Eddie meets her father, Sheikh Mulhulla, and her fiancé, Ben Ali, who is extremely jealous. Fanya hyperbolizes the encounter with the dog, saying that Eddie saved her from a lion's attack instead of a puppy.