$12

357

made by the Licensees

and

by their detective staff, to assist the Government and carry out its regulations.

13. The Licensees have, at considerable expense, built appropriate houses and formed their staff, which has become unusually efficient. I hope, therefore, I may be safe in presuming it is not intended that, suddenly and without any fault on their part, I should recall the licenses merely to test another experiment in the mode of distributing them. To do so, in the absence of any charge against the Licensees, would necessarily shake all future confidence in the Government and render similar transactions with the Chinese, by any method, whether such as the Duke of Buckingham has suggested or otherwise, liable, and most naturally so, to suspicion of bad faith. The better class of Natives would also probably be deterred thereby from entering into any engagement with the Government requiring the outlay of Capital and industry.

14. In the event, however, of any circumstances terminating existing arrangements with the present Licensees, who may not be able to pay the high monthly fee now exacted for much longer, I will endeavor that this Government shall be prepared with a complete plan founded, if possible, on the basis suggested by the Duke of Buckingham, and also that future Licenses shall be settled in accordance therewith.

INDIA & THE FARE

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