CHAPTER 7
THE FOOD SITUATION
85. Towards the end of May a number of rumours were circulating that communist shops, banks and other local establishments had advised their staff to lay in stocks of food. This led to a minor run on rice retail shops; but it was not serious and assurances by Government that there were large stocks in hand was sufficient to halt the pressure which, as usual, had caused a rise in retail prices.
86. The news of the closure of the Suez Canal on 5th June caused a more serious reaction; the fact that this break in the supply route from Europe would have no effect on rice supplies did nothing to reas- sure the public. Large numbers of people rushed to rice shops to buy as much as they could afford and retail stocks were quickly reduced at a faster rate than they could be replenished from the West Point godowns. By 7th June prices had risen by 90 to 100 per cent and people were driving out to the New Territories to buy. The Government controls rice, to the extent that it can be imported only through authorized importers who are required to keep a sufficient reserve con- tinuously in stock. At this time there were in fact some 85,000 tons of rice in the Colony, sufficient for about three months normal consump- tion. To allay the public fears, the Commerce & Industry Department arranged for the press to visit some of the main rice godowns to see the position for themselves and to photograph the stocks. On 8th June the Director held a meeting with all rice importers and wholesalers and arranged with them that large firms would be able to buy rice. direct from importers to sell to their employees. These measures suc- ceeded in reassuring the public; the demand eased and retail prices quickly returned to normal.
87. It was however clear by mid-June that the communists in Hong Kong were quite prepared to interfere with the public's food supplies, however much hardship was caused, if it suited their purpose; a special interdepartmental committee was formed to co-ordinate measures to meet this threat. Its services were required almost at once to deal with a 'food strike' announced by the communists whereby from 28th June to 1st July all supplies from China would be stopped and at the same time all food shops and market stalls would close. With their large importing and wholesale organizations which normally controlled the flow of supplies from China it was not difficult for the communists.
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