Ari Ben Canaan, together with his closest allies—David Ben Ami, Zev Gilboa, and Joab Yarkoni—prepare to carry out their plan. In order to fit their ship, the Exodus, to carry the 300 children, they use forged documents to impersonate British officers, then surreptitiously steal from a British supply depot for the necessary materials. To avoid raising suspicion, they build a base out in the open near Famagusta, which appears from the outside like another division of the British army. Hiding in plain sight, they are able to fit their ship, supply it, and train the youngsters in preparation for the journey.

The British officers in charge of Cyprus—Brigadier Sutherland and Major Caldwell—meet with Major Allan Alistair, head of the information services. Alistair tries to warn Sutherland that the undercover Jewish agencies operating in Cyprus are working to pull off a plan, but with the details of the operation still fuzzy, Sutherland remains unconvinced, much to the chagrin of both Caldwell and Alistair. After their unsuccessful conference, Alistair tells Caldwell that he intends to go over Sutherland’s head, sending a letter to inform General Tevor-Browne of the situation on Cyprus.