Investigating the island, Jean discovers a trail of power lines leading to a power plant situated in a deep crater at the center of the island. He also witnesses an escaping villager brutally killed by the pursuing soldiers. The next day, Marie and King wander outside the cave to collect flowers (Jean and Nadia debating about their next move -- should they rescue the people on the island or not?) and are captured by the soldiers. Jean and Nadia follow them to the crater and find themselves in a complex of factories, where the villagers are forced to work as slaves. They also recognize the "sea monster" as another submarine, known as the Garfish, operated by the soldiers' ruthless ringleader, Gargoyle. While Gargoyle investigates a powerful artifact needed to complete his secret weapon, Nadia's Blue Water is accidentally set off, forcing the children to escape from the factories. To save Jean from being killed, Nadia gives him the Blue Water and turns herself in. Jean promises to rescue her.