CONFIDENTIAL

6.

(b) the Hong Kong Government itself becoming the importer.

(c) the Hong Kong Government guaranteeing prices.

(c) the Hong Kong Government undertaking to assume unsold

stocks in the event of China resuming supplies.

(e) the Hong Kong Government operating a stock pile in

HongKong or in

Australasia. This could be done by appointing a

commercial concern, chosen by tender to operate the

stockpile on Government's behalf. This would also ensure

a supply if China should cut off her supplies during the

Australasian close season.

On both a long term or a short term basis the United States

should be able to supply all Hong Kong's chicken requirements.

Freight

7.

In an emergency operation refrigerated shipping could be

diverted to Hong Kong (para.2 above). Nor should there be any

difficulty over long term supplies; if the cargo is available

shipping can be found.

8. Except in a crash operation where expense is immaterial, air

freight would be impractical and prohibitively costly. Sea freight

from Australasia to Hong Kong amounts to 3žd. per pound. Air freight,

even at special rates, is 2/- per pound.

CONFIDENTIAL

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