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His Majesty's Government appreciate the friendly reference in the Declaration contained in the reply of the German Government to the 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 recognised that they could not sacrifice the interests of other friends in order to obtain that improvement. They fully understand that the German Government cannot sacrifice Germany's vital interests, but the Polish Government are in the same position and His Majesty's Government believe that the vital interests of the two countries are not incompatible.
3. His Majesty's Government note that the German Government accept the British proposal and are prepared to enter into direct discussions with the Polish Government.
4. His Majesty's Government understand that the German Government accept in principle the condition that any settlement should be made the subject of 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 U.S.S.R., whose participation in the Guarantee His Majesty's Government have always assumed.
5. His Majesty's Government also note that the German Government accept the position of the British Government as to Poland's vital interests and independence.
6. His Majesty's Government must make an express reservation in regard to the statement of the particular demands put forward by the German Government in an earlier passage in their reply. They understand that the German Government are drawing up proposals for a solution. No doubt these proposals will be fully examined during the discussions. It can then be determined how far they are compatible with the essential conditions which His Majesty's Government have stated and which in principle the German Government have expressed their willingness to accept.
7. His Majesty's Government are at once informing the Polish Government of the German Government's reply. The method of contact and arrangements for discussions must obviously be agreed with all urgency between the German and Polish Governments, but in His Majesty's Government's view it would be impracticable to establish contact so early as to-day.
8. His Majesty's Government fully recognise the need for speed in the initiation of discussion, and they share the apprehensions of the Chancellor arising from the proximity of two mobilised armies standing face to face. They would accordingly most strongly urge that both parties should undertake that, during the negotiations, no aggressive military movements will take place. His Majesty's Government feel confident that they could obtain such an undertaking from the Polish Government if the German Government would give similar assurances.
9. Further, His Majesty's Government would suggest that a temporary modus vivendi might be arranged for Danzig, which might prevent the occurrence of incidents tending to render German-Polish relations more difficult.