Lu's brother-in-law who runs a Japanese restaurant and raises two children. Secretly a Japanese spy infiltrating Shanghai, he fakes his death after saving Lu. He imprisons Xiao Liu as a sex slave and is later captured as a POW in the Philippines. Confronted by Lu, he is forced to sign extradition papers and is killed by Xiao Liu.
Watabe holds Xiao Liu captive after revealing his true allegiance.
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