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an arrangement with some wealthy Chinese, giving them the privilege of opening six gaming establishments for 330,000 Taels on $446,000 during years payable to the Government Department. The above figure is exclusive of many other dues exacted, no doubt, by the different local Mandarins, and amounting probably to half as much more.

I enclose a thoroughly reliable list received from two distinct sources of the sive establishments enjoying the sanction of the Chinese Authorities and I really do not think under such circumstances that Chinese prejudices or Chinese example need in the least affect Your Lordships' Calculations, when making the arrangements most suited to the interests of the Colony.

I think the suppression of the gross evils inseparable from Police Corruption and the increase of crime through gambling haunts, are subjects which therefore safely be legislated for without much deference to any Chinese anti-gambling prejudices.

When recently visiting Canton with a view to inspecting the prison, I was much struck by the open manner with which street gambling and play with dice in public houses accessible to the Public were permitted by the Police. I have since learned the existence of secret but well-frequented houses at Honam and in Canton which are...

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