Beside the Foggy Elbe / Estrellas ~The Stars~: Karl was a ship hand, who has decided to return to his hometown of Hamburg. There on the night of the yearly beer festival, he meets Margit, who tells him she has left her family home in search of freedom. They spend the night in a hotel, and fall in love. Not wanting to part, Karl proposes to Margit and the two rent an apartment together. In truth, Margit is the daughter of a prominent Hamburg family, and is engaged to a man named Florian. When her family comes in search of her, Margit vows to only return with Karl by her side.