Hannay and Pamela (Madeleine Carroll) leave Scotland and return to London. While Hannay heads over to the Palladium, Pamela tries to alert Scotland Yard about the secret formula about to be smuggled out of England, but the police assure her that the air ministry is missing no papers with regards to it. Still, they follow her when she rejoins Hannay at the Palladium. During the show, Hannay notices a man with the top joint missing from his pinky finger but can't figure out how Jordan is going to get the secret formula out of England. When the show is over, he hears a familiar tune and realizes that Mr. Memory is about to come on stage. Suddenly, it all clicks. Mr Memory has memorized the formula, and Jordan plans to take him out of the country after the show. When Mr Memory begins to take questions, Hannay shouts out, 'What are the 39 steps?' Mr Memory begins to answer. 'The 39 steps is an organization of spies collecting information on behalf of...' suddenly a shot rings out and Mr Memory falls to the ground. Jordan is seen attempting to escape, but he is apprehended by the police. Hannay follows Mr. Memory backstage and asks, 'What was the secret formula that you were taking out of the country?' Mr. Memory replies 'The first feature of the new engine is its greatly increased ratio of compression represented by 'r' minus one over 'r' raised to the power of gamma, where 'r' represents the ration of compression and gamma..., seen in end derivation, the axis of the two lines of cylinders, angle of 65 degrees. Dimensions of cylinders as follows. This device renders the engine completely sound. Am I right, sir?' He then collapses. In the final scene, Pamela and Hannay, the handcuffs still dangling from his wrist, hold hands as Mr. Memory is carried away.