XML schema draft comments: pt.1 3.15.2 child or descendant type definitions?

Regarding the draft at
http://www.w3.org/TR/2004/PER-xmlschema-1-20040318/:

Section 3.15.2 says:

   {type definitions}	
     The simple and complex type definitions corresponding to all
     the <simpleType> and <complexType> element information items
     in the [children]...

That wording seems to be ambiguous:  Does "in" mean only direct child
elements of the schema element, or does it mean all descendent
elements?

The same ambiguity appears to exist in several sibling paragraphs.


Daniel