Grace informs John about Dave's decision wanting to join the Army. Tom heads out with Bert again to try and devise ways they can make money. The Kauffmans return to the their shop depressed after attending the Police station to register as 'aliens'. Grace invites Mrs.Jessup and Lil to come over to the Sullivans house for a cup of tea and to meet her friend from Burrabri. Lil almost faints and won't go. Mrs.Jessup goes to the Sullivans house without Lil and discovers there is a good reason Bert and Lil left Burrabri.