Nearly a year passes. By September 1940, Nazi Germany occupies much of Europe and anti-German sentiment in Britain is high. During the year, Max has turned 12, “gotten rid of” his German accent, and is no longer bullied at school, although he still hates it. He hasn’t heard anything from his parents since coming from London. This worries him, although the Montagus assure him that the post is disrupted by the war.

One Sunday, Mrs. Montagu calls Max down from his room, saying that Ewen and Ivor are visiting. Max gets on well with both of them and Ewen is his best friend in England. In the basement, Max and Ivor play an intense table tennis match. When alone with Ewen, Max asks what Naval Intelligence is and Ewen reveals he works in espionage.

Ivor sets up his projector to screen a film for the family. The film is very short and surreal, provoking laughter from the brothers at how long it has taken Ivor to film. Ivor takes offense and heads for the door.

A massive explosion rocks the house, knocking Ivor to the floor. He is unhurt but Ewen orders everyone to the basement shelter. Max stays with Ewen at the open door and sees hundreds of German bombers approaching. They watch bombs fall as a nearby building explodes. Ewen slams the door and announces that the Germans have started bombing Britian’s civilian population.

The Montagus and their staff shelter in the basement for three hours. The narrator explains that the bombing is the start of “the Blitz” and describes the “Blitz spirit” of the Montagu family. While bombs drop nearby, Ivor and Ewen play a fierce table tennis match while the family cheers. Watching them, Max admires their resilience and feels love for them. Feeling like he is betraying his parents, he tells Stein and Berg he is determined to get back to Berlin.

When the bombing stops, Ivor wins the game. The family finds their house undamaged, but a neighboring home lies in ruins. They walk through devastated streets. Ewen rages at the bombing of civilians and complains about intelligence failures as there was no warning. Watching Ewen’s distress, Max sees a path home: If he can serve as a source inside Berlin, he can help Ewen while seeking his parents.

Several weeks later, the family are planning a fishing outing and picnic. This is set up as cover for Ewen meet to his superior, Admiral John Godfrey, head of Naval Intelligence, and for them to have a discussion with Mr. Montagu. The boys are also going along but are warned to behave and not to listen to or interrupt the secret conversation. Ewen and Mr. Montagu try to brief Godfrey on indications of the Holocaust, but Godfrey dismisses this as not Britian’s priority. Ewen argues for more spies inside Germany.

Max wades into the river, interrupting the meeting. He asks to be sent to Germany as a spy. The adults react with shock. Admiral Godfrey refuses, and Mr. Montagu angrily orders Max out of the water.

Secretly, Max tampers with the radio in Admiral Godfrey’s parked car. Anthony discovers him, but agrees to keep Max’s secret.

The family say goodbye to Godfrey, and everyone drives away. When Godfrey turns on his radio, he hears the Montagu family’s private conversation, happening in their car. Max has turned their car radio into a transmitter and tuned Godfrey’s car to receive it. Godfrey orders Ewen to bring Max to Camp 020 the next morning.

The next morning, Ewen confiscates Max’s radios before driving him to Camp 020, which he reveals is a prison run by the Intelligence Service. They arrive at a complex in Richmond and pass through security.

Colonel Roberts, an officer with a metal monocle known as “Tin Eye,” greets them. He leads them into an interrogation room and tells Max he will face questioning for the next two days. Max feels fear as the door closes. He looks at Ewen for reassurance, but Ewen looks back as if he’s a stranger.

The session begins. Tin Eye positions himself behind Max to unsettle him and asks about his life in Berlin. The questions range from mundane details to ideological questions.

Tin Eye peppers the exchange with antisemitic slurs and insults about non-English people. Max says he sounds very like a Nazi. Tin Eye is shocked and dares Max to repeat it; when Max stays quiet, Tin Eye accuses him—and all Jews—of cowardice. He accuses Max of being a Nazi agent, which shocks and frightens Max. Max returns that he is Jewish and not working for the Nazis.

Tin Eye presses Max on why his parents sent him away. Max answers that the reason was Kristallnacht on November 9, 1938. He recounts what he saw that night in Berlin, describing how Nazi thugs assaulted his neighbor, Rabbi Kolski, and destroyed their family’s property. When his mother rang the police, the police laughed. When Max’s father tried to remonstrate with the thugs, he was taken away. His father returned from Sachsenhausen concentration camp three days later, shaven-headed, traumatized, and with signs of physical abuse. When a family friend told them about the Kindertransport for Jewish children, his parents decided to send him away.

As the interrogation continues, Tin Eye suggests Max is spying for the Nazis to protect his parents and offers to help him if he admits it. Max says he would do anything to save his parents, but no one has ever made him such an offer. Max turns on Ewen for subjecting him this kind of antisemitic abuse. When Ewen demands the colonel’s assessment, Roberts declares Max secure and cleared for work. Ewen’s warmth returns as he explains the ordeal was a test of loyalty and resilience. He formally invites Max to train as a spy. Max accepts.

The following week, the Montagu family packs to leave for the countryside, as those who can afford to evacuate London do so. Max packs for his training. Ivor arrives for a farewell round of table tennis. Max explains his car-radio trick, and Ivor delights in Max’s audacity.

Ivor warns that British power structures treat people as resources and tells Max to remember he is the resource. He asks Max to write to him secretly and to let him know if he has any concerns. After Ivor leaves, Max reflects that the powerful often lie about their motives and wonders about the morality of spying. He steels himself for his training.