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ואף דחב״ד דבריאה יצירה דבחינת נשמה, שגבהה מאד מעלתן על בחינת מלכות דבריאה יצירה דנשמה

Now though ChaBaD of Beriah-Yetzirah of the state of Neshamah by far transcend Malchut of Beriah-Yetzirah of the state of Neshamah, for ChaBaD is the highest of the Sefirot of the world, while Malchut is the lowest,

ואף על פי כן, הן מקור לחב״ד דבריאה יצירה של בחינת נפש רוח, שהן המלאכים

still, [the ChaBaD of Beriah and Yetzirah] are the source for ChaBaD of Beriah-Yetzirah of the state of Nefesh-Ruach, namely the angels.

How do we then say that Malchut of Beriah and Yetzirah of the state of Neshamah cannot descend to become a source for created beings, when ChaBaD of Beriah and Yetzirah of the state of Neshamah that is far loftier than Malchut does serve as a source for created beings?

לא קשיא מידי

This is not a question at all.

דבאמת המלאכים והנשמות אינן אלא מטפה הנמשכת מחב״ד דנשמה ליסוד ז״א, וניתן לנוקבא

For in truth, the angels and souls that are created of ChaBaD of Beriah and Yetzirah are only of a drop drawn from ChaBaD of the Neshamah to the attribute of Yesod of Za, and then transmitted to nukva, i.e., to Malchut,

ומשם יצאו בבחינת לידה

and from there they (the souls and angels) went forth in a state of “birth” — a new entity resulted.

Thus, this is not a mere emanation from ChaBaD, as is the case with laws, for such an emanation cannot in fact serve as a source of created beings. Rather, it resembles the drop that brings about a birth. For this reason it is possible that created beings should result even from ChaBaD of Beriah and Yetzirah.

כי אף אם תמצי לומר שנבראו מהארת הכלים דנוקבא דאצילות, הרי הם היורדים ונעשים נשמה

For even if it is proposed that they are created from the radiance of the vessels of nukva of Atzilut, nevertheless, they themselves descend into Beriah, Yetzirah and Asiyah and become Neshamah unto them.

אבל עצמות חב״ד דנשמה מתפשט בו׳ קצוות דזו״ן

But the essence of ChaBaD of Neshamah extends into the “six directions” of Zu”n,

ושם הם שיתא סדרי משנה וגמרא

and there they are the Six Orders of Mishnah and the Gemara — the laws of the Torah.

The essence of ChaBaD thus descends specifically within the laws of the Torah, which are Divinity. Torah, in turn, descends within the level of Neshamah, which is also Divinity.