Pycelle presents to the small council a copy of Stannis's letter proclaiming Joffrey a bastard. Cersei wants to burn all the letters and rip out the tongues of any heard repeating the words, but Tyrion councils letting it pass as harmless. Lord Petyr goes one step further and says they should promulgate their own tale about Stannis's daughter Shireen, saying that Lady Selyse conceived her with Patchface. Cersei is delighted by this plan. The rumor will be spread by Lord Petyr through the brothels he owns and through Varys. Mention of Varys makes Cersei wonder why he is not at the meeting. Tyrion takes his leave, saying he must check on a chain he is making for Joffrey. Bronn waits for him outside the council chamber to escort him back to the Tower of the Hand, where several master smiths await. Podrick attends Tyrion in his chambers and dresses him for the meeting. He greets the armorers, including Ironbelly and Salloreon, in his audience chamber and orders them to construct a giant chain. They are reluctant at first, seeing the work as common and also fearing Cersei's wrath because she has ordered them to make arms and armor and threatened to crush the hands of any smith that failed to meet quota, but Tyrion promises no hands will be crushed and that any man who refuses to make links for the chain will be arrested. With the audience done, he makes preparations to go into the city.
As Tyrion rides through the streets in his litter, he is the subject of many hateful stares. Though he has ordered several carpenters to construct fishing boats, opened the Kingswood to hunting, and sent goldcloaks foraging, there is still not enough food, and he receives the blame for it. They arrive at his destination, the brothel owned by Chataya. Chataya greets him and shows him some of her girls. Tyrion chooses Alayaya, who leads him to a room. Within the room is a wardrobe with a secret passage. Tyrion climbs down a ladder and is greeted by Varys, disguised by scars and stubble. Tyrion expresses his surprise that a brothel would have a secret passage, and Varys replies it was made for another Hand of the King whose honor would not allow him to enter a brothel openly. The passage ends at a stable, where Varys provides an old horse and a cloak as a disguise so Tyrion can ride to Shae's manor undetected. They discuss Stannis and his proclamation. Tyrion wonders how Stannis knew the truth about Cersei's children, and Varys is mysterious about the topic. Tyrion tells Varys that he sometimes feels the eunuch is his best friend in the city and other times his worst enemy. Varys says he feels the same way about Tyrion.