The film is about New York in the late 1960s; a politically motivated group of students plans bombings of company offices who do business with dictators in Central American countries.
Meanwhile, at a New York City dance studio, Estelle Ferguson receives a phone call, informing her that “the merchandise has arrived,” which she collects from a chemical company later that evening.
The following day, Jerry and Estelle pose as tourists while they study the layout of the headquarters of Morris and Ray Metals, a cookware company that also builds personal detention cells called “tiger cages,” used to imprison, bury and drown enemy combatants in Vietnam.
Tommy argues that this step is unnecessary, but Jerry insists that the public needs to understand why the bombing occurred, otherwise it would be perceived as a wanton act of destruction.
In Washington, D. C., journalist Richard Scott enters the office of William Decker, an FBI official in charge of special operations.
The official denies the allegations, but explains that his special operations address the problem of the Weathermen, former members of the pacifist Students for a Democratic Society who have formed a network of autonomous cells with no central authority, some of which have resorted to terrorism.
After Tommy assures the group that copies of the contracts have been mailed to every major news outlet, he reviews the details of their mission, as an FBI tape recorder documents the conversation.
That night, when Jerry returns to Estelle's apartment, she seduces him by performing a belly dance, and later tells him the story of how, following a miscarriage, she kept the fetus in a milk bottle for several days.
Meanwhile, in Washington, Decker secretly meets with Scott and offers the reporter an exclusive story on the failed bombing of the Morris and Ray building.
In return, Scott promises to place a four-week moratorium on any news that might connect the FBI with illicit activities involving the White House or the CIA.