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COPY.
Enclosure 2.
Paraphrase of Cypher Telegram,
From.
To...
.Governor, Hogkong.
.Smeretary of State.
Date. ............................ 25th. December, 1916.
796
Your cypher telegram of yesterday Grand Hotel and Peak Hotel Licensees are persons named in para. 2(d) and 3 of my Confidential Despatch of 4th. February.
The first aged 34 left Germany 1897 has no intention of rt retuming and his sympathies are British. Licensed since 1909, married in 1906 an Australian whose father lives with licensee. The second aged 34 lived here continuosly for 11 years and been licensed for 7 years. He was naturalised in 1931. Both are of good character. In 1914 former's licence refused by majority of Board but appeal to Governor-in-Council upheld. Latter's licence unppposed. This year both licences refused by unofficial majority but appeals to Governor-in-Council upheld only Hewett dissenting unofficial members of Board thereupon resigned but one unofficial member of Executive Council and two unofficial members of Legis- -lative Council and one other leading merchant quickly came forward and took their places. The Executive Council throughout asked acted judicially under licensing Ordinance. No question of policy involved.
May.
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