these enterprises again, it was not possible to get the necessary permission from the Japanese Consulate General, and the Japanese military authorities began to get serious about the seizure of these works* Therefore the German Consulate General found itself forced to take up negotiations with the Japanese Consulate General* At this occasion the Japanese Consul SONE took the following attitudes a)No distinction would be made in Germany's favor in the treatment of the various foreign nations; b)The efficacy of the transfer of property from Chinese to German nationals depends upon recognition by the Japanese. Japan was in a position to enforce its will by refusing work permits or other measures which, if necessary, could be taken by the newly set up Chinese Government* The lack of a judicial foundation for this procedure was expressly confirmed* As reason for Japan's attitude Consul SONE stated that the sought for Chinese-Japanese ‘cooperation’ would be hindered if the Chinese would find safety behind foreign firms. “Councillor of the Embassy FISCHER defended the judicial standpoint, that German firms, even if they possessed no claims against a Chinese firm, were entitled to acquire property from same, and that for this no Japanese permission was necessary; however, declared himself willing /to enter into/ further discussions with the aim of finding a solution locally.