Over thousands of Elevens sign up to join the Special Administrative Zone of Japan, thanks to Suzaku's representation of a shining example of an Honorary Britannian and Euphemia's proclamation. The decision is not without controversy, though: Cornelia voices her reservations about the Special Zone to Schneizel, Kirihara of the Kyoto Group is offered a favorable position in the Special Zone in exchange for the rights to his Sakuradite mines, and many within the Black Knights sign up to join as well. Within the Black Knights, there is a split between those who support it, stating that opposing the Special Zone would cost them vital support; and those who oppose it for various reasons, including the necessity to disarm if they join. There is opposition among Britannians as well, with Lelouch witnessing a Britannian noble brutalizing an Eleven while being very vocal about his opposition to the Special Zone.
On the day that the Zone is to be officially established, Zero makes a grand appearance aboard the Gawain, to Euphemia's delight. He requests to speak with Euphemia in private. All the while, the Black Knights lie in wait around the stadium.
Inside Euphemia's mobile base, Lelouch pulls a gun on Euphemia, telling her that she would shoot Zero on live television, causing civil unrest and the loss of Euphemia's popularity. When Zero makes a miraculous recovery, support for him will swell. Just then, as C.C. confronts Suzaku, something goes awry with Lelouch's eye, a disturbance C.C. also feels. When Suzaku places his hand on her shoulder, he suffers a psychic assault that leaves him unconscious.
Lelouch is moments from using his Geass on Euphemia, when she tells him that she had renounced her right to the throne, so she could live with Lelouch and Nunnally once more. Thus, does Lelouch finally agree to aid Euphemia in the foundation of the Special Zone.
Afterwards, Lelouch describes his power of Geass to Euphemia, telling her that if he wanted to, he could compel her to kill all of the Japanese.
At that very moment, Lelouch loses control of his Geass: the eye contact he makes with Euphemia causes him to unwittingly compel Euphemia to kill the Japanese. As Lelouch realizes the horror that has just occurred, Euphemia takes his gun, runs out into the Special Zone, and orders the Japanese to die. She then orders the soldiers to kill the Japanese, leaving everyone present confused. Her intentions become painfully clear when she shoots one of the Japanese.
Suzaku awakens to the sound of gunfire, and discovers, to his horror, the Britannians and Euphemia committing wholesale slaughter against the Japanese. He boards the Lancelot and begins his desperate search for Euphemia.
At the same time, Lelouch boards the Gawain. As chaos reigns around the ceremony grounds, he issues his orders to the Black Knights: the Special Zone was a trap by Euphemia, therefore the Black Knights are to wipe out the Britannian military, find Euphemia, and kill her.
