Rice Purchases

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With the discontinuance at the end of 1949 of international allocation of rice supplies by the International Emergency Food Committee of the Food and Agriculture Organization of the United Nations, it again became necessary for rice-importing territories to As negotiate for their supplies directly with producing territories. the British Ministry of Food at the same time expressed its intention of stepping out of its previous role of bulk buyer for British territories, responsibility devolved upon individual territories. view of the political situation and the continuing uncertainty as to the adequacy of world rice supplies, a representative was sent from Hong Kong to Bangkok in February to begin negotiations with the Government of Thailand. These negotiations, which were conducted through the British Ambassador and in conjunction with representatives from Malaya, lasted some five weeks. Although there was at first some hard bargaining, the negotiations were friendly throughout and it was evident that the Government of Thailand realized both Hong Kong's special difficulties and the importance of a guaranteed rice supply in meeting them. A contract was finally concluded for 120,000 tons at the same price as was paid in 1949. Arrangements were also made to continue to use the services of the Siam Rice Agency in Bangkok, a consortium of British firms set up in 1945 to act for the Ministry of Food.

Shortly after this the rice situation, both in Thailand and in South China, from which certain supplies had come in previous years but which was at this stage itself buying Thai rice, suggested that Hong Kong's contract with Thailand might be inadequate. A Hong Kong Government representative was accordingly sent to Saigon to purchase Indo-Chinese rice and in view of the situation the French authorities agreed to make special arrangements to transport 10,000 tons of rice from the blockaded producing areas to Saigon for export to Hong Kong.

Development and Welfare

Not yet half the £1,000,000 allocated to Hong Kong by H. M. Government under the terms of the Colonial Development and Welfare Act 1945 has been spent. It had originally been decided to spend £500,000 on rural projects but in view of the steady and satisfactory progress made by the farming and fishing community it is now considered that the Colony's most pressing need is the provision of adequate housing in the urban areas, and it therefore seems likely that the greater part of Hong Kong's unspent allocation under the Act will be devoted to housing. Preparation of suitable plans has been going forward slowly, the planners' most serious problem being what to do with structures already existing on the sites scheduled for new housing projects.

During the year H. M. Government approved the grant of £20,825 for the equipping of two floors of the new Cable and Wireless building, Electra House, as a broadcasting studio and offices for Radio Hong Kong. The plans which were in the process of being implemented at the end of the year include studios for the English and Chinese language radio services, office and waiting-room accom-

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