the Opium Monopoly, and the Chinese gentlemen on the Committee rendered very good service, while from the middle of September until the end of November Commander C. W. Beckwith, R.N., who is acting as Superintendent of Imports and Exports, and Mr. A. K. Taylor of the Police Force, temporarily attached to the Department, worked strenuously to avert the danger which threatened the safety of the stocks of rice.
29. The situation dealt with in this report is happily without precedent in the history of the Colony, and this is not surprising. Only events of a most unusual character could produce such a crisis. First, a world shortage of cereals combined with a partial failure of the rice crop in Siam, one of the principal producing areas; secondly, an abnormal trade situation in Indo-China leading to such a rise in exchange rates as to make the price of rice in the currency of the Colony almost prohibitive; thirdly, the increase in the sterling value of silver during the critical period from about 48 pence to 75 pence an ounce; and lastly, the unexpected arrival in the Colony of abundant supplies of good and cheap rice from a source supposed to be closed, which rendered the large supplies of rice bought under adverse conditions useless for the immediate purpose for which they were intended.
30. Though the transactions of less than five months have resulted in a large drain on the financial resources of the Colony, these transactions may be considered as covering a period of probably a year more.
a year more. The difficulties attending the provision of proper supplies of rice for the Colony at a moderate price are by no means surmounted, so far as can be seen, but the valuable experience gained by what occurred last year, will enable proper precautions to be taken, with, it is to be hoped, little extra loss, to meet any possible crisis during the current year. The Colony has become accustomed to a regular supply of rice at a price far lower than it can be obtained for, unless steps are taken early and in the right quarter to ensure that it will be available when required.
22nd January, 1920.
CLAUD SEVERN,
Colonial Secretary.
•
Appendix I.
His Excellency the Officer Administering the Government met the Unofficial Mem- bers of Executive Council and Legislative Council in the Council Chamber on Tuesday 15th July, 1919, at 9.30 a.m. The Colonial Secretary and Mr. R. O. Hutchison were also present.
His Excellency outlined the situation in which the Colony stood at present as regards its rice supply for the remainder of the year, and read the telegraphic corres- pondence which had taken place with the Secretary of State for the Colonies, the Straits Settlements, Saigon and Siam on the possibility of securing a sufficient supply. The Secretary of State had now left the matter to the discretion of the Colonial Government.
The situation, he said, was serious, but not as bad as it might be. The aim of the Government was to avoid any interference with the regular rice trade of the Colony. The Straits Settlements had recently taken steps to secure a Government controlled supply of rice and had fixed the price at $25 a picul. This Government had now had an offer through His Britannic Majesty's Consul, Saigon, for the sale of 27,500 tons of No. 1 White Rice, which had been purchased by him for the Straits Settlements Govern- ment, but was not now required. The price would be $13.30 (Saigon Currency) ex mill.
His Excellency desired to know whether the Unofficial Members approved the purchase of this quantity. The total cost at which it could be brought to Hongkong was approximately $17 per picul. The assistance of the British Consul had been asked in order to secure an export permit from Saigon to enable the rice to be brought to Hong- kong, export being at present prohibited. This Government had also as an alternative telegraphed to His Majesty's Minister at Peking for permission to export 3,000 tons of rice monthly from China, the transaction being arranged if necessary through a private individual, so as to avoid the difficulty which China might have in refusing similar requests from other Governments.