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F. Lugard's Despatch No. 3 of 4th. January, 1910, and the steps that have been taken to give effect to it are (a) the closure of low class Public Houses (b) the fixing of a standard of quality for Whisky, Brandy and Rum (see page 647 of the Regulations of Hongkong). It is now proposed to consider the question of forming

a small Trust to start and manage one or more Refreshment Houses

on the lines of the People's Refreshment Houses in England to take

the place of the Public Houses which have been closed or are under

notice of closure.

If it is desired to obtain more revenue from

the use of alcoholic liquors I submit that it would be simpler and

easier to do so by increasing the import and excise duties on such

liquors rather than by the complicated system of acquiring the

profit on the sale of the same.

I have the honour to be,

Sir,

Your most obedient,

humble servant,

Аниз

Governor,&C..

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