to acknowledge in this document the possibility of a division of China into areas which either were or were not under Japanese influence. In answering this I stressed that, with our stipulation of text, we merely wished to clarify that the agreement did not app}.y to such areas which finally would remain of China without being under Japanese influence* In itself this was natural because the Japanese Government could of course only take over respon¬sibilities for such areas in which it had influence. There¬fore I was willing to ask for the Beichsminister’s decision whether he approved of the Japanese suggestion, to put only 'China in the parts of the Pro Memoria concerned. "2) The Japanese counterdraft wishes to put the words 'German foreign trade' where, in various parts, it says 'German trade in China.' I declared to the Ambassador that we could not agree to this. The reconstruction and securing of the commercial activity of German firms in China was for us an unavoidable prerequisite for the economic cooperation in China desired by both governments. This commercial activity, however, not only consisted of the import and export of German goods by these firms to or from Germany, but also of trade within China and of mediation for export of Chinese goods to third countries for instance America and England. At last the Ambassador conceded this and consented that at the end of (I) and in (II) before the letter (a), just 'Germany's trade in China' should be put in place of 'foreign trade.’ w3) The Japanese suggestions for changes under the letters a) and b) present the main difficulty. The Ambassador