A german U-boat and a british war ship sink each other on the ocean. Several passengers of the ship are able to get on a lifeboat, later also rescuing one surviving german, Willi, from the water who later appears to be the captain of the U-Boat. Though the passengers get along well at first the strict food rationing and theirs being forced to get along with each other on such small territory leads to mistrust and hate. Willi usurps steering power during a storm and leads to boat towards a german supply ship, secretly drinking stolen water. When found by the german-american Gus Smith he throws him overboard. The next morning Willi is interrogated and found guilty and the others throw him overboard with the words "What do you do with people like that?". Still, the german supply ship finds them and attempts to make contact but is being sunk by an allied war ship that now comes to aid the lifeboat. The lifeboat also rescues another german out of the water who is wondering why the others are not going to kill him. The film then ends repeating the words: "What do you do with people like that?".