The gobins drop their guard as Jon approaches peacefully. Jon relates his offer of peace and goodwill, and asks for safe passage. He is informed that the "Goblin King" (self styled King obviously, since these are the Fairy Queen's lands) will hear the request. They tell Jon that he has to follow them into their caves to see the King. They seem to Jon to been receptive to the request and will lead him to the "Goblin King" in earnest. They do not appear to be aware that Sir Walter is at the top of the hill, armed, watching and waiting.