This episode focuses on 1975. In January the IRA declare an 'indefinite ceasefire’ and secret talks take place between the government and Sinn Fein. Unionists and loyalists are fearful that the government is planning a withdrawal from Northern Ireland and loyalist paramilitary violence intensifies. On the political front there are elections to a constitutional convention. There is a brief hope that William Craig's compromise of 'voluntary power-sharing' will form the basis of a solution for Northern Ireland. However, the idea is swiftly rejected by most unionists and leads to the destruction of William Craig as a political force. Meanwhile, the IRA ceasefire disintegrates as hardliners within the organisation believe that their leadership have been duped by the government.