This is a memorandum on a conversation reflecting the differences of opinion between the head of the China Desk in the East German Foreign Ministry and the First Secretary of the Chinese Embassy Qi Huaiyuan with regard to the intended establishment of a Chinese trade representation in West Berlin. East Berlin is clearly concerned such a step might favor West Germany's alleged goal of winning sovereignty over West Berlin, in violation of the Four Power Agreement. Qi states that he does not understand the East German position, and that the activities of Chinese diplomats in West Berlin are in accordance with international law. He rejects the notion that these relations might conceivably harm the interests of East Germany.