"R. M. 17 State Secretary Dir. Pol. "The Japanese Ambassador referred to the mediation activities of Germany in the Sino-Japanese conflict, when he called on me today. By order of the Minister HIROTA he expressed his thanks for our activities. Making use of this opportunity I have pointed out to Mr. TOGO the danger, which might grow up in^ Japan on account of the too prolonged war. Mr. TOGO has explained on his side, that Japan wishes to work for peace cooperate with China and wishes conclusion of the hostilities as soon as possible. But, on the other hand, the Japanese Government is determined to carry on the war to its bitter end and the conditions of peace would naturally become the more harder, if the war continue the more longer. Besides, the Japanese Government no longer considers today CHIANG KAI-SHEK as representative of the Chinese Central Government. Japan is still willing to negotiate with him. However, if he would not accept the Japanese peace conditions, the Japanese would make peace with each provincial governors. To believe the military victory of China is a fantasia* "The Ambassador stressed then in addition, that the Japanese are taking the greatest interest in working hand | in hand with the German in China's economic development. There would be no exclusion of German trade in China, which was sometimes feared by German merchants.