desp: No 84 of 22 November sanctioned the placing of gambling houses under a system of supervision by License or otherwise - provided that such a matter should not be treated as one of Revenue but of Police.

In that view, I am of opinion that the license fee should be limited to such an amount as would be fully enough to cover all expenses of issuing licences and checking, and may extend to repay the expenses incurred by the Police in making arrangements caused by the Licensed Houses.

I approve of the suggestion made in connection with them, in which the Council concur, that a gambling farm monopoly (notwithstanding the advantage which you anticipate would arise from such a measure) should not be adopted.

I cannot but hope that the energy which you have shown in your endeavors to control the criminal population of Hong Kong will also enable you to apply the licensing system so as to bring the gambling houses under proper restrictions, and remove the Police from the temptation to corruption and bribery.

Pharise B&L/

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