At Munich's Oktoberfest, veteran CIA field agent Miles Kendig (Matthau) and his team foil a microfilm transfer. Upon Kendig's return to Washington, his boss, Myerson (Beatty), reassigns him to a desk job because Kendig did not arrest Yaskov (Lom), the head of the KGB in Europe. Kendig explains to Myerson that he knows how Yaskov thinks, and it would take time and resources to identify and learn about a new replacement. Kendig's good friend and protege, Joe Cutter (Waterston), is nevertheless assigned to take over his mentor's old job.