 A military jet crashes into the bay close to the lodge. Nancy and Hannah go out in a boat and rescue the downed pilot. Meanwhile Billy and Pete are paddling a canoe and see the jet go down in the distance. Before they can get to the lodge they are stopped by army officers. On their way to inform Dougall, the boys recover a wooden box from the water. Believing that the box may have something to do with all the cloak and dagger, Billy, Pete and Dougall devise a plan to get through the blockade and back to the lodge.