were settled and out of the way. It was not desirable, if it could be avoided, to start on any additional problems, whatever the merits of those problems might be.
6. The Ambassador appcared fully to understand this argument, but he nevertheless gave mir. Noul-Baker a little indication of what his Government seems to have in mind. He said that of course the talks, if they began, would not be at all like the Egyptian negotiations. They would be of the friendliest kind; and he for his part believed that they could lead to an agreement satisfactory to both sides. The Hong Kong question had a great "sentimental" appeal in China, but on the practical side of the matter, i.e. busi- ness, defence, etc., he was sure that arrangements could be made which would give us everything we wanted. The Minister did not pursue this line of thought, but he gathered that what the A.bassador had in mind was some kind of arrangement under which nominal sovereignty over Hong Kong would pass to China, while in practice we would for any purposes retain control. In any case, the Ambassador appeared to understand that he and his Government would do well not to raise the question again at the present.
I am, etc.,
(For the Secretary of State)
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