Charlie Chan (Sidney Toler) is working undercover in Panama (selling hats of course). When a group of travellers arrive in town, one of them visits Charlie (his contact) but dies soon after, poisoned by his own cigarettes. Charlie and Jimmy (Victor Sen Yung) investigate the other travellers, one of whom is thought to be a mysterious foreign agent and who plans to attack the Panama Canal while a US Navy fleet is sailing through it...
This is a great film that keeps you guessing until the end (though seasoned watchers / readers of whodunnits from this period will probably guess who the agent is!) The high stakes (the world was at war, though America was not yet involved but probably knew they would soon), intricate plot and good performances (including by Jack La Rue, who always plays a good villain) make this a highly enjoyable film.