We see Henry flying some sort of fighter jet. He was going on a mission with some guy. They land and listen to a Congressman announce this is the future of defense. At the reception afterwards, a man tells Henry every politician is making these planes part of his platform.
Russell, Bess, and a military guy meet. The military guy says they need more money. Dalton wants Elizabeth to convince Taiwan to buy the jets. Elizabeth doesn't agree with this policy, but Dalton says that the F-40s are the cornerstone of American defense and this has to happen. Elizabeth says she can't promise anything.
Daisy needs Matt to watch her injured dog.
Jay and Elizabeth meet with the Military Affairs people who seem upset. She encourages them to share their concerns.
Military Affairs thinks that this could provoke China, which could cause World War III. Taiwan won't want the F-40s for that reason. Jay suggests they give Taiwan an incentive. Elizabeth tells Military Affairs she agrees with him and will present the facts to the POTUS but they have to do what he wants.
Blake talks to Gary, the Military Affairs guy, who says he will explain how awful this idea is over a drink sometime.
Henry comes home. Elizabeth asks him to explain the problem with F-40s. Henry thinks they are slow and old technology.
Elizabeth gets a call from Minister Chen, who is not happy. Alison needs to get something off her desk and distracts Elizabeth. Chen says China considers this a grave provocation and will prepare themselves for war.
At an emergency meeting, Elizabeth learns there is a spy in the State Department. In addition, Dalton wants to go for a hardline response.
Blake is nervous about being called to M. Sec's office. Two FBI agents want to talk to him.
Matt rants to himself as he closes his blinds about how he's not a mind reader. He is exhausted and lies down to close his eyes for a minute. The dog escapes. Daisy catches him and brings him back and yells at Matt.
The FBI thinks Gary is the spy. Blake is surprised and defensive. Elizabeth says he doesn't have to participate if he doesn't want to.
Blake meets Gary for a drink. Gary doesn't drink. He says he's sure Elizabeth sent him here to find something out. Blake thinks Gary is being paranoid.
Meanwhile, two guys are searching an apartment (Gary's?)
The FBI says the next morning that Gary's girlfriend sent the memo to a company called Fosser, who sent it to China. Dalton is confused as to why this happened. Elizabeth realizes Fossers is trying to force them to make the sale. Dalton says this isn't going to work.
Russell says they are not prepared for this fight. Bess says they have to respond. Henry says this is what Eisenhower warned them about it.Another advisor says they are on solid legal ground.
The CEO of Fossors says this is inappropriate. The Department of Defense says he's canceling the contracts.
Jay tells Blake what has been going on. Blake asks what's going to happen to Gary? Jay says Gary's career is over. Blake is upset that Gary is being treated so harshly. Jay says these are life and death issues and Blake must understand that.
At a meeting with Chen, he says that if the sale to Taiwan is cancelled he sees no reason they can't keep working on the fair trade agreement.
Bess is relieved that they could have such a productive conversation. Chen was surprised that the Canadian ambassador really says "aboot".
Jay says they have to contact other countries because China is making changes. Daisy and Matt argue about China (but really about the dog) Blake suggests they talk privately.
Matt and Daisy go into his office. Jay tries to get them to work it out. They keep arguing. Daisy starts crying. She says Matt's right but she doesn't have the resources, so she's going to have to rehome Waffles. Nina interrupts. M. Sec needs to see Jay.
Russell and Elizabeth are arguing. Apparently some Congressman insists Dalton and Elizabeth think appeasing the Chinese was more important. He is putting a rider on the spending bill. Russell says either they shut down the government or let them get away with it.
Elizabeth said they have to give Congress a chance to do the right thing. Russell doubts they can. They meet with a bunch of Congress people. Elizabeth says understands the role Fossor plays. But the fact is Fossor engaged in espionage and then leaked top secret material pertaining to the potential sale of the F-40 to the Chinese to force them to go forward with the deal. She says it's not true that Taiwan wants the F-40s. A Taiwanese representative says Taiwan doesn't want the jets. Russell says they are risking shutting down the government. Please vote no.
Henry talks to Jeff who can't tell what happened in the room. He says as long as Fossor's espionage is unproven, the Congress people will stick with them. Henry says he was a Marine pilot and swore an oath to defend the Constitution, not a corporation.
Blake goes to see Gary in the bar. Gary is hurt that anyone could think he was a spy. He plans to find a small town somewhere to hide out in. Blake suggests Boston. Harvard is looking for a Senior Fellow. Gary isn't sure. He tells Blake he has a big heart. He tells Blake to keep having a good heart.
Russell delivers bad news: the Congress has the votes to override a veto, including Henry's friend Jeff.
Elizabeth says if they push that rider through, CHina will pull out. No company should dictate what the government does. Dalton says that Eisenhower's speech about the military-industrial complex for the end of his career. He thinks Elizabeth will be an excellent President. If she wants to fight this battle, make sure it's the most important to her.
Dalton's other advisor comes in. He found more corruption.
The Fosser CEO smokes a cigar and plays golf. He is interrupted by three FBI agents.
Some Congress people are not supporting Brandt's rider. They argue over whose fault it was that they supported it in the first place.
Matt comes to see Daisy. He spoke to his landlord and he agreed to make an exception. He told him that Waffles was an emotional support dog. Daisy isn't sure about this. but Matt says Waffles is emotionally supporting her.
Henry meets with Jeff. He says he doesn't totally understand all the pressures on Jeff as a Congressman. He says Henry always saw things clearly. Henry realizes Jeff was the anonymous source that tipped off the DOJ. Jeff says he's still a Marine.
Elizabeth joins the staff and President for a toast. Elizabeth is not happy that Fossor is eating the cost and buying the planes themselves. Dalton says this is as close to a win as they're going to get. Elizabeth is mad and leaves. Everyone else talks about this being a win for the American people.