Gemmy forms a special bond with Lachlan, giving the boy a sense of power that catches him by surprise but gives him great pleasure. Lachlan knows what it is to be an outsider - he has arrived from Scotland to live with his aunt and uncle, Ellen and Jock McIvor, after the death of his father. The McIvors take Gemmy in, providing him with shelter in return for a few chores. Mr Frazer, the local minister and the only member of the community who seems to be in sympathy with his new Australian environment, tries to decipher Gemmy's history and his knowledge of the bush. With the help of the young schoolteacher, Frazer tries to make a record of Gemmy's life.
Suspicions rumble away amongst the rest of the community.
Fears are focused on a possible conspiracy between Gemmy and the aborigines, who are perceived as a constant threat. Trust in Jock begins to be undermined because he is sheltering Gemmy. Things come to a head when a disgruntled worker sees Gemmy with two aborigines. Seizing his moment of glory, the worker embroiders the episode. Unpleasant little incidents follow.