and it was notified that the Government would be prepared to buy rice at $10.14 a picul. It has been the custom for the New Territories to export their rice and buy cheaper rice in Hongkong for their own use. In the abnormal conditions prevailing this year this practice had to be abandoned.
16. An endeavour was made to obtain rice from Kuangtung, and after much corres- pondence the Government at Canton permitted the export of 10,000 piculs of Wuhu rice by the Kuangtung Food Relief Association to the Tung Wah Hospital at Hongkong at a price of $6.70 a picul. The Tung Wah Directors showed great energy in erecting a number of matsheds in Victoria, Shaukiwan and Aberdeen where many thousands of very poor people were supplied free of cost with a mixture of boiled rice and salt, known as congee, twice a day. This system of relief continued for several weeks and was most useful in preventing a great deal of distress.
17. An attempt was also made to get rice from the Hunan Province of China viâ Shanghai. H. M. Minister at Peking and the Consul at Changsha did all they could, and the Government at Peking was favourable to the project, but owing to the stipula- tions of the Governor of Hunan the price demanded was prohibitive so that the offers made had to be refused.
18. The Indian Government sanctioned the export of 3,750 tons of rice from Rangoon and this rice has recently arrived in the Colony. Through the generosity of the firm of Messrs. Nemazee & Co., about two-thirds of this rice is being carried free of freight to Hongkong.
19. Appendix II shows the total amount of rice purchased by the Government up to the 30th September, the only further purchase being necessitated in November in order to comply with the terms of a contract for the sale of rice on consignment to America. This will be dealt with at a later stage of the report.
20. The rice purchased was divided into three classes under the designations Hong- kong No. 1, No. 2, and No. 3, and the recommendation of the Committee to fix the price of the three grades at 20, 16, and 12 cents a catty respectively was adopted. These prices were altered a few days later to suit the usage of Chinese buyers to 5 catties = $1,7 catties = $1, and 9 catties = $1, and before the end of August the price was further reduced to 5 catties $1, 74 catties- $1, and 10 catties = $1. No. 1 rice was Saigon round or long, No. 2 a mixture of Saigon round or long with an equal amount of broken rice, and No. 3 a mixture of one-fifth Saigon round or long with four-fifths broken rice.
21. Sales of Government rice took place up to the 3rd September as follows:--
No. 1
No. 2
No. 3
2,853 piculs.
8,838
11
56,124
"J
About the 3rd September sales suddenly ceased and it was found that rice had begun to come into the Colony from Kuangtung. An excellent quality of rice was thus available for consumption in the Colony at the comparatively low price of $8 a picul.
22. In view, however, of the appearance of this rice on the market, the question immediately arose as to what was to be done with the rice imported by the Govern- ment and bought locally. Some of the latter already showed signs of deterioration and it was decided to sell the rice bought in the New Territories at $8 a picul and to make enquiries as to the best markets in which to sell all the remainder with the exception of a few thousand tons. Japan had ceased to buy any rice in Hongkong and the Straits Settlements did not require any. The sterling value of the dollar had continued rising so that the price to be obtained in countries with a gold standard was becoming less when reckoned in dollars. Eventually arrangements were made to sell 10,000 tons on consignment to America and about the same amount locally. A careful examination of the rice stored in the godowns in Victoria showed that much of it was discoloured and full of weevils, but notwithstanding this prices were obtained which were quite good consider- ing the state of the market. In fact the sales were made just in time to avert very serious losses indeed owing to the rice becoming practically unsaleable.