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430 spend on bribing the Police if measures of repression were continued. Sir Richard, however, continued his policy of repression which at first seemed so effective that, on January 7, 1867, he reported to the Earl of Carnarvon, that the Police Force was greatly improved, that crime was more rare than it had ever been, that a prospect was beginning to open of almost suppressing gambling, that gambling was already diminished to less than one-fifth of the amount at which he had found it, that for many weeks past none of the Police had received any regular allowances from the gambling societies, but that street gambling still continued, and that, unless the Police continued their vigilance, the evil would again break out as before. But hardly had a week passed, after this roseate report was dispatched, when circumstances came to his knowledge which caused him to report (January 14, 1867) that the progress made by the Police in suppressing gambling was not so great as he had thought. Three months later (April 29, 1867), he had further to report that circumstances had led to a partial renewal of the old demoralisation among the Police. On May 9, 1867, Sir Richard found that he had come to the end of his resources and that he had failed. On that day he informed the Duke of Buckingham and Chandos, that he now saw no reasonable grounds for expecting that the Government could ever succeed in suppressing gambling in Hongkong and that the present mode of dealing with it (by prohibition) is destructive of the morals of the Police and ineffective for the purpose sought.

Sir Richard now determined to try the system of licensing a small number of gaming houses with a view to control gambling and suppress it by degrees. He had thought of it before. As early as August, 1866, he had privately sounded the Members of Council with regard to the draft of an Ordinance (8 of 1866) entitled 'for the maintenance of order and cleanliness' but containing provisions for the regulation (i.e. licensing) of gaming houses, which, he hoped, would obviate the necessity of resorting to the Stamp Ordinance then under discussion. This was the bait offered to the unofficial Members of Council. By their