The meaning of "the three realms are mind-only" is that all dharmas in the worlds of the three realms are born from the mind-substance of the tathāgatagarbha. Why can the tathāgatagarbha give birth to all dharmas? Because the mind-substance of the tathāgatagarbha is replete with the seeds of all dharmas; having seeds, it can give birth to all dharmas—seeds have the aspect of generative capacity. The seeds of all dharmas are the seeds of the seven great elements within the mind-substance of the tathāgatagarbha, and together with karmic-force seeds in cooperation, the dharmas of the three realms can be manifested by the tathāgatagarbha. The tathāgatagarbha operates within the conditioned dharmas of the three realms in the manner of mental factors (caittas). When He operates, He simultaneously outputs karmic seeds and the seeds of the seven great elements; the tathāgatagarbha uses the seeds of the seven great elements to give birth to mental dharmas and material form. When mental dharmas and material form are complete, the conditioned dharmas of the three realms are complete.
The tathāgatagarbha in the stage of sentient beings possesses only the five universally present mental factors. Among them, the attention (manaskāra) of the tathāgatagarbha is attention directed toward the seeds, toward the body of the five aggregates, toward the seven consciousnesses, and toward the receptacle-world. The contact (sparśa) mental factor of the tathāgatagarbha contacts karmic seeds, contacts the body of the five aggregates, contacts the minds of the seven consciousnesses, contacts the receptacle-world of the universe, and contacts the outer six sense-objects. After contact comes the operation of the feeling (vedanā) mental factor, receiving and accepting those objects of contact—that is, taking them in—without generating feelings of suffering or pleasure therein; there is no feeling of suffering or pleasure, entirely neutral feeling (upekṣā-vedanā), that is, no felt experience at all. After the reception, the perception (saṃjñā) mental factor operates; perception is knowing and discerning, and then it grasps marks and holds marks. The tathāgatagarbha's manner of grasping and holding marks is utterly different from that of the seven consciousnesses. Finally, the volition (cetanā) mental factor comes into function, deliberating and deciding, determining to act, and thus outputs the seeds of the seven great elements and begins to transform and fabricate—thereupon the conditioned dharmas of the three realms appear.
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