Yep. It takes place after the first half, which is Italy, June 1918. Whereas the second part, Morocco 1917 was unaired. This caused some continuity errors since Indy met Edith Wharton there. She didn't arrive in Morocco till 1917 and she didn't write her novel In Morocco till then.
It had Indy going off to Morocco to find out who was selling arms to the Berber Rebels in the area. The intelligence division suspects a traitor in their ranks.His disguise was that of a French Foreign Legion officer who assists writer Edith Wharton. Serre, who turned out to be the villain was played superbly by British actor David Haig.