This is an extremely rare second developmental stage Walther Model AP (Armee-Pistole) prototype pistol serial number "35" that includes its original matching factory magazine. It is consecutively numbered to the "AP" model pistol serial number "034", also in this auction. This series of Walther pistol was actually produced in two serial number ranges, with the second group using the "zero-prefix" serial numbers, like this example. This example also has the "concealed hammer" design, however it does not have any provisions for a shoulder stock. These are considered early engineering design or development models, with no two are alike, so each can have some unique and innovative features. This example has the standard swinging locking block, twin recoil springs on the frame, standard 4 7/8 inch barrel, with the two separate; takedown and slide release levers, with the takedown lever still having the larger checkered head. The slide retains the single reinforcing rib on each side and the concealed internal hammer, characteristic of the earlier "Mod AP" pistols. These early prototypes were produced circa 1932-34 with an estimate of approximately 75-100 produced and less than 20 known today. This example has an all steel frame with the longer rear area (below the slide serrations); however, as noted, it is not machined for a shoulder stock. The left side of the slide on the reinforcing rib is marked, "Waffenfabrik Walther, Zella-Mehlis (Thur)", and below that it is marked, "Walther" inside a banner followed by "Armee-Pistole Cal. 9 m/m". The right side of the slide below the reinforcing rib is marked "Walther's Patent". The serial number "035" is located on the right side of the frame above the trigger guard bow, the right side of the barrel lug, the right side of the locking block, and the top, right side slide rail. Additionally, the underside rear cut out area of the slide it is stamped "35". This example has the original Walther factory wraparound two-piece grips that have the full checkered panels on each side and a lanyard loop on the lower left side. The grips are numbered "35" on the back of each panel. As noted, this super rare pistol comes with its original matching magazine that is serial numbered "035-69" on the lower left hand side. There are two excellent reference books that provide historical/factual information on this model. The first is "Walther Vol. III, 1908-1980" by Rankin on pp. 72-73 and the second is "The P38 Pistol" Vol I, by Buxton, pp. 31-33, and pp. 48-67. This Walther Mod. AP is an extremely scarce and important pistol in the overall design and development of the Walther P.38.