Smiley reflects on the end of the Cold War, and makes a rueful joke that, in one way, the world has changed, but in another, it has always been the same and the secret services are gradually waking up from their own deluded perceptions of it, and themselves.
After a couple of years of training at the Sarratt Nursery, in the glens of Argyll and battle camps of Wiltshire, Ned is looking forward to his first overseas posting and is disappointed to be kept in London, as part of a team of watchers keeping an eye on a Middle Eastern royal family. In a famous Knightsbridge store, Ned becomes alarmed when he sees a suspicious Arab closely following the prince's wife at a distance. Ned prepares to incapacitate him with a martial arts blow, but his supervisor Monty grabs Ned and holds him back. Ned learns that the wife is a compulsive shoplifter and the man is not a fanatic assassin, but instead assigned by the prince to pay compensation and hush money to the stores she steals from. Monty comments, "That's the trouble in our job, Ned. Life's looking one way, we're looking the other."