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REPORT 10.2 TO LONDON-3/11/45

Department of Supplies, Transport & Industry

59

Civil Affairs,

Hong Kong.

Following upon my first report of the 10/10/45, I have

now to add:-

1.) RICE SECTION. Mr. M.K. Lo was appointed officer in charge from October 29th.At date there are only about two weeks' supply of rice in stock, and Jacsea supplies are coming in slowly enough to cause anxiety. In the first two months only about 6000 tons ex "CITY OF WORCESTER" have been received. It is reported that the Chinese have established Customs stations at Tai Kong, Sze Kiu, Siu Lam, and Tai Ping and that the embargo on the export of pro- visions, including rice from these places will be enforced.

2.) PERISHABLE FOOD SECTION. The supply of perishable foods is being undertaken by the army with the aid of the Dairy Farm Ice and Cold Storage Co.,Ltd. This section has, therefore, been closed down as the company will henceforth operate on a commercial basis. The resultant saving in salary will be HK$6,600 per month but foodstuffs supplied will cost more. The net result should be a saving.

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3.) DRY GOODS SECTION. The stocks that have arrived ex Sacsea or War-Office are negligible, amounting in all to 30 tons tinned Milk

4 " powdered

" Salt "dehydrated

Vegetables. It is in-

90

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Some small local purchases of peanut-oil have been made. tended to wait until some continuity of supply is in sight, then launch sufficient supplies on the market to bring prices down and keep them down.

4.) STORES SECTION. This section has been handicapped in its work because there are numerous wants and few stores in Government hands to fill these wants. In some cases immediate needs can only be met by buying from Chinese' dealers who seek inflated prices. is hoped that stocks of stationery, etc. will reach Hongkong from England before the end of the year. Meantime only those stores which are essential to carry us over this period are being bought.

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5.) FUEL (OIL) SECTION. Arrangements have now been made with the R.A.S.. for supplies for C.A.A. requirements to be drawn from them. The emptying of Shaukiwan A.R.P. tunnel has now been com- pleted. All drums are now collected in Forth Point Installation. A survey is being made to ascertain how many empty containers are available for storage purposes, and arrangements are being made for all empty containers in the Colony to be collected at either korth Point or Taikoktsui. Discussions with the R.A.". are going on re- garding the supply of Aviation Spirit for commercial purposes. Final arrangements regarding rehabilitation of storage facilities are in progress, and discussions with the Lavy as to the allocation of available storage facilities are going on.

6.) FUEL (COAL, FIREWOOD & CHARCOAL) SECTION. The coal situation has eased slightly because it is expected that some 30,000 tons of coal will reach Hongkong in November. This is only a small part of the Colony's present needs and every endeavour must be made to ship as much coal as possible in the near future. Industry cannot be started unless coal in greater quantities arrives.

As regards Firewood, we are still without any substantial source of supply. No firewood has come from Borneo because it has been im- possible to date to send shallow-draft vessels there to bring the firewood that has been cut to the coast. The need for firewood is urgent. Dome 20,000 piculs of firewood have been collected in the past few weeks by purchases of small quantities from local dealers.

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