Don José tells the narrator that he was born José Lizzarrabengoa to an old Christian family of Basque nobility in Navarre. He studied to join the church per his family’s wishes, but far preferred the game of tennis to working. One day he and another young man got into a fight with their maquilas (a traditional Basque walking stick equipped with an iron spike) after a match stirred their passions, and as a consequence Don José was forced to leave his home. He enlisted in the Almanza Cavalry Regiment and was swiftly promoted to the rank of corporal, with hopes of soon becoming a sergeant.

He first meets Carmen when guarding a factory in Seville, which employs 500 women to roll cigars. Unlike the Spanish soldiers, Don José is diligent while on duty, busy making himself a chain for his priming pin. As the women return to the factory, they are catcalled, none more so than Carmen, who responds saucily to every compliment. In Navarre, Carmen’s immodest style of attire would be considered scandalous. Don José has no interest in any girl who isn’t Basque, so he ignores her. His indifference draws her attention and she approaches, mocking him when he refuses to gift her the chain he’s making.