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represented to me to be quite separate from those licensed by the Chinese Government,

In fact from all

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in China is learn, gambling everywhere forbidden everywhere practised, and is everywhere the source of a great amount of mischief aggravated by the injudicious manner in which it is dealt with by the Authorities.

12. I will enclose for Your Lordship's information the Police return for the month ended on the 14th instant, of the number of illegal and dangerous characters arrested.

viz: 46, and Timite

attention to the fact that all those 16 persons were captured through information supplied by the agency of Mr. Caldwell acting for the Licensees.

63. I next transmit the return of charges of Larceny against Servants, during the first Quarter of the current year, a period which moreover included the time of greatest temptation to that class during the peculiar festivities and obligations of the Chinese new year in February.

I may here inform Your Lordship, that the evil which originally I and others apprehended was held out to Servants by opening legal places of gaming.

The result however contradicts all expectation, and proves under what control the Licensees are kept by the present system.

Formerly the cases of Larceny by Servants averaged upwards of 80 per Quarter, whereas since

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