Sarah tells her mother, Ada, about her relationship with Billy Prior. Ada scolds her daughter for having sex outside marriage; she reminds Sarah that contraception is not always reliable (repeating a rumour that every tenth condom is purposely defective) and declares that true love between a man and a woman does not exist.
Sassoon meets his friend Graves and tells him of his decision to return to war. Graves lectures Sassoon on the importance of people keeping their word. Graves then tells Sassoon about a mutual friend, Peter, who has been arrested for prostitution and is being sent to Rivers to "cure" his homosexuality. Graves stresses that he himself is now writing to a girl called Nancy, implying that he is not homosexual. This conversation leaves Sassoon with a feeling of unease, implying that he himself may be unsure or worried about his sexual orientation.
The girls at the munitions factory joke that many of the men serving are gay. When Sarah asks why one munitions worker called Betty is not there, her co-worker Lizzie replies that Betty is in the hospital after attempting a home abortion with a coat-hanger.
Sassoon talks to Rivers before he is sent back to France, and they discuss Peter and the larger question of the official attitude towards homosexuality. Rivers theorises that during wartime the authorities are particularly hard on homosexuality, wanting to clearly distinguish between the 'right' kind of love between men (loyalty, brotherhood, camaraderie), which is beneficial to soldiers, and the 'wrong' kind (sexual attraction).
The medical board meets to review the cases of various soldiers and to decide on their fitness for combat. According to the board, Prior should have permanent home service due to his asthma. Prior breaks down at the news, fearing that he will be seen as a coward and ashamed that he will not be able to find out what calibre of soldier he is. Sassoon tires of waiting for his turn to see the board and leaves to have dinner with friends. Rivers, angry at this flippant behaviour, demands an explanation, at which Sassoon apologises and admits that he was afraid. Sassoon assures Rivers that although his views of the war have not changed and he still stands by his "Declaration," he does want to return to France.
Prior and Sarah meet again and admit their love for one