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purchase the whole of the licences in Hongkong there would seem

to be no practical objection to allowing it at the expiration of

any annual licence to apply to the Board for the Transfer to it of any such licence subject to the payment of such compensation

as the Board may award.

If this suggestion is considered feasible

the proposed notice to the existing licensees would be unneces -sary and if compensation is to be awarded we consider the

notice undesirable.

In the event of a transfer of the licences

to the Association section 6 of Ordinance 8 of 1908 gives the Legislative Council a general power to alter the licence fees.

(3d.) W. Roes Davies,

Attorney-General.

9th. July, 1910.

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