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Yes you need to talk to Bernard first, in the Copper coronet.
**spoiler**
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After that you go to the Gov't dist, enter the Gov't building, talk to The Guy who you bought the Liscence from. ( a mage on the left when you walk in). Ask him about RED-and GREEN-robed guys.... OR ask him about how you would HIRE a cowled wizard... only then when you leave will the wizard be there ( terrence) when you exit the building. Pay him to stay away from the fight with that guy who hates Jaheira.
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