Ernst arrives to offer him a job smuggling a briefcase into Germany. Needing the money, Cliff accepts. Everyone in Berlin earns money in strange, illegal ways-the Emcee announces in The Money Song . Fraulein Kost, a prostitute, discovers that her landlady, Fraulein Schneider, is having an affair with Herr Schultz. Sally arranges an engagement party at the fruit shop.
Cliff arrives at the party with the smuggled suitcase.
He hesitantly gives it to Ernst, who wears a swastika arm-band. Herr Schultz, rather drunk, sings a Yiddish-type song, Meeskite . Ernst decides to leave, but Fraulein Kost lures him back by singing a Nazi song Tomorrow Belongs to Me . When all the guests join in exultantly, the party suddenly turns sour. The Emcee and Kit Kat Girls do a Rockette routine which turns into a goose-step.