Stardate 47457.1: Admiral Erik Pressman leads the Enterprise on a mission to recover the USS Pegasus which he and Riker, at that time one of his junior officers, had to abandon years ago. He doesn't tell Picard the whole story, and he demands that Riker be silent about the events on the Pegasus. Actually, Pressman was testing a phase cloaking device, illegal according to the Treaty of Algeron, the crew mutinied, and the few crew members loyal to their captain had to leave the ship. When they discover traces of the ship inside an asteroid, Pressman orders the Enterprise to enter a narrow rift leading into the interior where they find the Pegasus, partially submerged in the solid rock. Obviously the phase cloak suddenly failed. Aboard the Pegasus Pressman and Riker are going to salvage the cloaking device, but a Romulan Warbird has sealed the entry to the asteroid, leaving the Enterprise trapped. Riker reveals Pressman's secret, and the phase cloaking is installed on the Enterprise, so that the ship can pass through the solid rock. In open space Picard orders the cloak to be deactivated, because he wants to make Pressman's violation of the treaty public.

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