When Parker is blindfolded and begins talking about the machine gun, Fuji has his arms folded. With Parker talking the camera angle changes and Fuji now has his hands on his hips.
It's obvious Captain Binghamton isn't really smoking the pipe. If he was the smoke from the bowl would be drawn down into the pipe when he inhaled yet it just continues to waft up undisturbed and even increasing somewhat at one point. Most likely it is something like incense in the bowl.
Early in the episode, while Capt. Binghamton is talking on the telephone with the admiral, he refers to a map as he describes the supposed location of some of the small (fictional) islands on the show. The territory depicted on the map, however, is in fact the almost continent-sized islands of New Zealand.
Happy is in this episode, yet in earlier episodes of season three he is missing as he is supposed to be on the Love Boat.