0003230

G.F. 323

CONFIDENTIAL

4

15.

Fresh Foods These include live animals, poultry, fish, eggs and vegetables. With the Chinese preference for really fresh food which has not been either chilled or frozen, daily marketing is the general practice of Chinese families. These foods have to come in daily from China and be distributed as quickly as possible to retail outlets. Pigs and cattle are collected and slaughtered in two major abattoirs run by the Urban Servicos Department and the fresh meat is distributed in U.S.D. vans to the many retail outlets. Licences are required for the sale of fresh meat, poultry and fish and while the number of shops retailing such goods is increasing the majority of the population buy their meat, poultry and fish from stall holders in fifty-five Government supervised markets. Vegetables are also sold in such markets but probably as much is sold by about 26,000 hawkers both licensed and unlicensed.

16.

Frozen Foods The most important frozen foods are meat and poultry. China exports large quantities of frozen meats and poultry which are cheap and used primarily in the cheaper restaurants. Other frozen foods are generally of much higher quality and are distributed through retail stores to the middle and upper class purchasers. Increasing numbers of stores now stock frozen foods in deep freeze cabinets. There is a total of 5 million cubic feet of cold storage available of which 80% is located on Hong Kong island. About 700,000 cubic feet of this storage is owned by communist firms.

17.

Dry Foods Dry and tinned foods are imported by some 300 major importers and then channelled through wholesalers to a very large number of retail stores. The great variety of godowns and stores used for stocks of dry foods makes it extremely difficult to exert any influence on the distribution, price or quality of these foods.

18.

Internal Transport Within Hong Kong food is conveyed by a large fleet of motor vehicles. Most of the 15,000 goods vehicles are owned by small firms with two or three lorries and many are owned by the individuals who drive them. There is considerable competition for business particularly since the decline of the building industry. As a result lorries are always available and strikes or boycotts are difficult to organise effectively. The local communists have tried hard to organise drivers into unions and in recent months have attempted to extend their control over transport by:-

a) employing ex public transport drivers who are members

of their unions in controlled transport firms;

b) insisting on Chinese goods being carried in 'patriotic'

lorries;

c) propaganda against Police traffic officers who are

naturally unpopular with drivers, anxious for any business regardless of the law.

CONFIDENTIAL

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