Episode 65: Pages 272-288 of volume 4 of the Kodansha publication. [source]
In this chapter, the Captain of the Great Tokyo Empire open fire on women, children, and the sickly that Miyako's followers were tending to. Despicable.
Chapter ends with Kaneda's ghost reappearing in front of Kei again, and apparently Tetsuo felt Kaneda's presence from way in the distance.