Text Version

1. His Majesty's Government appreciate the friendly references 
      in certain sentences of reply of German Government to latter's 
      desire for an Anglo-German understanding and to their statement 
      of the influence which this consideration has exercised upon 
      their policy.
2. His Majesty's Government repeat that they reciprocate the 
      German Government's desire for improved relations, but it will 
      be recognized that they could not sacrifice the interests of 
      friends in order to obtain that improvement. They fully understand 
      that the German Government cannot sacrifice Germany's vital interests, 
      but the Polish Government is in the same position, and His Majesty's 
      Government believes that the vital interests of the two countries 
      are not incompatible.
3. His Majesty's Government notes that the German Government 
      accepts the British proposal and is prepared to enter into direct 
      discussions with the Polish Government.
4. His Majesty's Government understands that the German Government 
      accepts in principle the condition that any settlement should 
      be made subject to an international guarantee. The question of 
      who shall participate in this guarantee will have to be discussed 
      further, and His Majesty's Government hope that to avoid loss 
      of time the German Government will take immediate steps to obtain 
      the assent of the Union off Soviet Socialist Republics whose 
      participation in the guarantee 
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