George V dies. Churchill continues to rail against the government's failure to adequately prepare for war. Wigram grows increasingly despondent at the prospect of war when Hitler occupies the Rhineland. Sarah elopes to America with a Jewish musical hall comedian. When the new king gets embroiled in a dispute over his relationship with an American divorcée, Churchill champions his cause losing yet more popularity with house members.

Churchill is completely marginalized following the election of Nevill Chamberlain as P.M. Chamberlain pursues a policy of appeasement and orders ministers to cut defense spending. He also brings a civil servant, Sir Horace Wilson on as an aide. Lord Halifax broaches the subject of disarmament with Goehrin which causes Anthony Eden to resign as foreign minister. After promising Churchill that there will be no more accommodations, Chamberlain flies to Munich to meet with Hitler on Czechoslovakia.