0003230
G.F. 323
CONFIDENTIAL
6.
failure of countries such as Burma, South Vietnam and Cambodia to maintain their exports. However, rice importers have, with some success and despite local communist propaganda against it, brought in considerable quantities from U.S.A. in recent months and U.S. rice is now accepted by consumers. Australia and South and Central America are other markets which are being tentatively explored. The price factor, however, is a bar to these areas becoming major sources of supply. Another disturbing factor is the increasing and urgent demands for rice arising from the war in Vietnam.
25.
The new exchange rate of the Hong Kong dollar resulted in a higher import price for rice. The export price of Thai rice is traditionally quoted in sterling. Subsequent to the decision of the Thai Government not to devaluc, Thai exporters decided to adjust export quotations proportionally. The price of China rice has also
gone up.
26.
The internal distribution of rice is not directly controlled nor is the local price, although the Director of Commerce and Industry is in a position to influence the trade. Rice is still traditionally handled by lighter, stored in godowns on. Hong Kong Island, carried by coolies and distributed by lorry. As the bulk of the population is in Kowloon and the New Territories, this distribution system is vulnerable to:
27.
a) disaffection amongst coolie labour, lightermen or
transport drivers;
b)
a stoppage of the vehicular ferry.
A run on rice shops did occur at the time of the Middle East war when general uneasiness was increased by rumours and distribution simply could not keep up with the panic demand. As a result prices rose alarmingly until Government was able to reassure the public of the presence of large stocks and the lack of any need to hoard rice and to pay inflated prices.
28.
Since June this year, prices have remained stable. The need for a redistribution of rice stocks and some control of the local retail trade is under examination but neither can be achieved quickly. The Commerce and Industry Department has recently asked stockholders to keep a minimum of 8,800 tons of rice in Kowloon and consideration is being given to increasing this stock.
29.
Public confidence in the ability of Government to meet threats from China will be to a great extent dependent upon its ability to maintain the supplies and price of rice at acceptable levels. Although eating habits are changing the population is still conservative in its diet and would not happily tolerate a prolonged lack of supplies of rice or fresh meat.
Live Animals
30.
Live Pigs During 1965/66 there was an average daily consumption of some 6,000 pigs. The recent pattern of supply has been:-
/ Table
CONFIDENTIAL
Page 15Page 16