-3-                             
 
 
there are two policies open to Germany :-
 
(l) the Bismarckian, in which Germany's interests in Europe
are paramount.
 
(2) that or the Kaiser, William II, expansion across the seas
involving a navy possibly superior to the British or
American, and eventual conflict.
 
We did not think that Germany today contemplated the
second policy. 
 
 
On these bases Lord Lothian did not see any insuperable
obstacles to closer co-operation. If confidence were established 
as to ultimate purposes; the response would be rapid                                                                                                                                                                                        ú in
Falkland, an exploration of all those questions was important,
as mutual confidence would make the settlement of other
questions more possible.
 
 
General Goering said he would discuss questions on the
basis of realities (real basic).
 
 
Speaking with emphasis he declared that Germany's attitude
is to the British Empire.
 
 
It is Germany's primary interest not to see a weakening
of the British Empire. Germany has no territorial claims In the
Empire. The General would go as far as to say that If the
British Empire were gravely menaced, It would be Germany's
interest to come to Its support.
 
 
Germany, moreover, respects not only the territorial
integrity of the Empire but all those English vital interests,
such as the status quo In the West, Belgium, the Franco-German
frontier, the Mediterranean, East Asia.    But England should
concentrate 100 per cent on its own interests and not pursue a
doubtful policy In pursuance of the vague requirements of the
League of Nations.
 
 
Germany has no sort of wish to interfere (autasten) with
English interests.                                                                                    "
 
 
As for Colonies, continued the General, naturally German
wishes to have colonles.