Aunt Maude confronts Kate about her continuing association with Merton and threatens to withdraw her financial support from Kate and her father. Kate reluctantly breaks with Merton and refuses to meet with him anymore. A few months later, at a dinner party given by her aunt, Kate is introduced to the wealthy American orphan and heiress Milly Theale (Allison Elliot), who is on an extended trip through Europe with her travelling companion Susan Stringham (Elizabeth McGovern). The cynical Kate is captivated by Milly's beauty, vivaciousness and humour, and the two form a strong friendship. Kate and Merton reconcile and resume their secret meetings; one day they run into Milly, and Kate introduces Merton as a family friend. Soon after, Milly invites Kate to accompany her and Susan to Venice.