Inform the princesses of the news and pick up candy. Go to the shop, talk to Genie ("About trade and girls" menu item, it appears if you talked to peasant women), give him candy, get poems.
Read poems to peasant women. At night we receive news of the arrest of the director...
Here: http://skazgames.com/forum/viewtopic.php?f=34&t=253#p11803