The Aleuts hunt for the otter in the kelp beds and skin them on the beach, making the waves "red with blood" (3.4). The narrator is upset with the hunters because she sees the otters as her "friends" (3.5).
Karana complains to her father about all of the otters the hunters have killed, but Chief Chowig calms her by saying there are still plenty of otters left on the island, and the Aleuts will be leaving soon.
The Chief sends two men to build a canoe on the shore so they can watch the Aleuts and make sure the men don't leave without paying up.
The Aleuts begin to pack their things to go. The Captain trims his beard back to the length it was at his arrival.
Everyone in the village wonders if the men will keep their promise. The Chief doesn't ask any questions. He only begins working on a new spear.