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Lordship states, as to the Majesty's Government being reluctant to allow the system of licensing to become a monopoly of Kowloon. There is hardly any other way than that of farming the gambling houses, for inducing the Chinese to abstain wholly from gaming, aid the Government in suppressing gambling everywhere except in certain licensed houses, and thus cutting off the present chief source of corruption amongst the Police. The higher the bid for the License, the greater the security received by Government for the punctual observance of the conditions attached to that license, and I think the amount received is a matter of detail, not of principle.
27. It will be found that if the farming of gambling licenses be allowed, Lordship should revise the instructions given in your despatch 841 of 29th last November - they are not applicable to the only known practicable system by which the existing irregularities can be effectually terminated. I would suggest that with the above explanations, it might be better to leave the Governor in Council the discretion to exercise his powers under the Ordinance as circumstances might, in the opinion of his Council, render expedient. I doubt if it would be easy to fix any limit at present beyond which the Executive