Lyric discussion by OpinionHead 

Cover art for Grace, Too lyrics by Tragically Hip, The

I was just thinking about Jay said above and what a buildatree mentioned. I think it connects that the guy in question is either a soldier or a cop and he's in love with the hooker. That's a major faux pas in the eyes of the overseers and this could will end up court-martialed and/or demoted and/or otherwise. The second verse says it bluntly, "I come from downtown born ready for you. Armed with skill and it's frustration and grace, too." He's torn between her and his call to serve and to protect. He came from downtown to take her away in one of two ways: to the Casbah or to jail. That's the inferred meaning I believe.