Really enjoyed part one of you chapter three discussion. The line about "And then a bunch of carnies showed up and kidnapped me" had me laughing out loud.
At one point you talked a bit about whether or not Peace can be regarded as Weer's memoir or if the post-modern techniques make that untenable. (I hope I've got that right.) I'd like to suggest that it does work as a memoir, but not one that Weer is intending to publish. If that's so, then what is his intention?
In chapter four the perspective does seem to shift for a few pages, but it's just Weer summarizing the contents of a diary he's found. This part of the chapter is particularly full of holes and his abrupt change of voice may suggest his discomfort with the material.
You may be right that both Olivia's story and Smart's were written before "Peace" was conceived, but I think that what the Chinese officer learns is significant to the overall narrative. Contrast the moral of that story with the moral of Smart's (if you can find one) and you'll see some interesting things that Wolfe will pick up again in chapter five.
Chapter four takes a very hard left turn and I can't wait to hear what you guys make of it. Thanks for helping me see "Peace" in new ways.