June of this year. The German firms, which have about a share in this export, are heavily damaged by this. The German Chamber of Commerce in Tientsin requests remonstrances to the Japanese Government, as this measure was taken at the inducement of the Japanese in the interest of Japanese war economy. A prohibiting of the export of cotton is said to be imminent. - 3 - "All in all the reports of the German officials in North and Middle China show that the German economic interests in China are worse off in the Japanese occupied areas than was ever the case in national China, even at the time of the sharpest anti-imperialistic Kuomintang propaganda. This fate is shared by the Germans with all other foreign interests. However no signs of preferential treatment of the German Interests by Japan are to be found. "Part of the injuries under which the German economic interests suffer are certainly to be traced to the war situation and the urgent critical situation, which forces Japan to take measures which otherwise it would not take. In the main, however, it concerns measures which originate from a consequential economic policy of Japan and aims at the abolition of all foreign influences in China. The example of Korea and Formosa shows where this development will lead to if we do not defend our interests with all /our/ vigor. "The Japanese have promised us, at the very least de facto, a preferential position. The facts give us the