The possibility for controlling both the probe-field optical gain and absorption, as well as photon conversion by a surface-plasmon-polariton near field is explored for a quantum dot located above a metal surface. In contrast to the linear response in the weak-coupling regime, the calculated spectra show an induced optical gain and a triply-split spontaneous emission peak resulting from the interference between the surface-plasmon field and the probe or self-emitted light field in such a strongly-coupled nonlinear system. Our result on the control of the mediated photon-photon interaction, very similar to the 'gate' control in an optical transistor, may be experimentally observable and applied to ultra-fast intrachip/interchip optical interconnects, improvement in the performance of fiber-optic communication networks, and developments of optical digital computers and quantum communications.