Using his dinghy (which is equipped with a small outboard motor), Walter tows the launch to a tiny, sheltered lagoon, and makes his way to a little grass hut just off the beach. The supplies have been left here; there's a cot, table and chairs, radio, and charts of Japanese planes and ships on the walls. Frank calls up on the radio to give Walter further instruction on his duties, and on the use of code names when talking on the radio. Frank is Big Bad Wolf, Stebbings is Little Bo Peep...and Walter is to be Mother Goose. Frank hastily switches off the radio on Walter's angry, profane response.
'I don't see we've accomplished anything,' says Stebbings. 'After all you can lead a horse to water, but you can't make him drink.' 'Oh, if he gets thirsty enough, Stebbings, he'll drink,' replies Frank, dryly. And sure enough, a moment later Walter calls to ask about the case of whiskey that was delivered with the supplies. Frank tells Walter his men have hidden the bottles in spots he will never find on his own. Whenever Walter calls to report any Japanese planes or ships he's seen, he'll be given directions on where to find one bottle. Walter immediately tells Frank that he's seen a couple of Japanese planes, and starts giving him a detailed description. 'CONFIRMED sightings, Walter,' says Frank, interrupting Walter's attempted ruse.
Walter resigns himself to an indefinite stay on Matalava...at least until he can repair his boat. He works on it whenever possible...and diligently reports any Japanese plane and ship movements...and loses no time applying for the promised bottle afterward.
Stebbings informs Frank that another of the coast watchers, Perry on Bundy Island, is ringed in by the Japanese and requesting to be withdrawn. A quick look at their map shows that Walter is the only one near enough to help. Frank calls Walter and offers him a bargain: if he'll go to Bundy, and pick up Perry, Perry will help him fix his boat and stay on at Matalava in his place. Walter refuses at first, shrewdly guessing Frank hasn't told him everything. Then he calls Frank back and makes a counter offer: after all, a man in a seven-foot dinghy traveling over all those miles of open sea would need a little comfort...after a failed attempt at bartering, Frank agrees to provide directions to all the remaining bottles of whiskey.
Walter lands at the south jetty on Bundy after dark, as instructed...but Perry isn't waiting there for him, as promised. He cautiously makes his way to Perry's shack...and stumbles just outside over what looks like a grave, marked with a rough cross. He goes inside and sees that the hut has been strafed from the air...everything has been shot to pieces.
