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Food.

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27. The population of the Colony at the end of 1945 was estimated at one million, and the subsequent rate of increase at about 100,000 monthly. In no respect were the Administration's powers of improvisation so taxed as in the provision of food for this rapidly increasing population. The arrival of the initial supplies of rice was delayed up to the danger point; and by the end of November only half the Colony's agreed requirement for the three months period had been received. Thereafter the situa- tion improved, but early in the New Year the Hong Kong quota of rice from the SEAC area was severely reduced, though partial compensation was made by the substitution of Australian flour for a certain proportion of the original rice allocation. Overseas supplies of other foodstuffs, thought less vital to the immediate needs of the population, were confined to a single shipment of 56 tons up to the end of November. During December and January further consignments, largely of tinned meats and refrigerated goods, up to a total of 1,000 tons, were received, but quantities available were at no time sufficient to meet the local demand or to effect radical adjustments in the market price level.

28. The Administration's food policy had, therefore, three important aspects: namely, the strict conservation and control of existing food stocks, the encouragement by every means in its power of the flow of locally produced foodstuffs from the neigh- bouring areas of China, and the equable allocation and distribu- tion of all supplies, whether available stocks, local produce or the restricted consignments from overseas.

29. The implementation of this policy proceeded gradually through several stages. The first and most fundamental step was the fixing of the price of Government controlled rice at 20 cents a catty, by means of a subsidy which was estimated in November to be costing the Administration some $150,000 per day. Concur- rently the export from the Colony of foodstuffs imported from overseas was banned. Thereafter an arbitrary price-control was imposed upon such foodstuffs as flour, peanut-oil, sugar and salt. The Administration lacked the staff to enforce the restrictions in respect of these latter commodities, of which the main stocks were not under official control, but the orders nevertheless had the intended effect, and within a few days there was a marked steady- ing in the price level.

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30. With regard to bread, an experiment was made which met with considerable success. Large quantities of flour were borrowed from the services against shipments which the Admin- istration was expecting from Australia, and an official loaf was produced, in sufficient quantities to meet a large proportion of the demand, and was sold at 50 cents as against the previous market price of $6.00.

31. Rice rationing continued in an effective form from the early days of the Administration, although the official daily ration had to be reduced by 20% in December, from 1 catty per day to 8 catty, and again by 50% to 4 catty in the middle of January. Later in January a further adjustment was made by the replace- ment of a proportion of the rice ration with flour, which resulted in a five-day ration of 2 catties of rice and 11⁄2 catties of flour. Early in March still further restrictive steps had to be taken in order to protect the interests of the existing population against the effects of unrestrained immigration from China, and it was announced that no new registration for ration cards would be accepted unless it could be shown that the applicants were essential workers or were bona-fide ex-residents of the Colony. During March also a monthly ration of sugar was included in the rice- rationing system.

32. The non-Chinese population depended, throughout the period, largely upon service rations, supplemented by spasmodic and limited supplies of European-type foodstuffs from overseas. The sale and price of these importations was controlled, and every effort was made to ensure distribution on an equable basis.

tion.

33. When the first accommodation survey was made early in Accommoda- September, it was estimated that the overall damage to housing property throughout the Colony averaged about 15%. In the case of some districts, however, and notably those which had housed European residents prior to the war, the average damage was placed as high as 60% due to a combination of the effects of neglect, looting, bombing and fire.

34. As far as European accommodation was concerned the Administration was faced with a dual problem. First, the allo- cation of relatively undamaged houses

a European

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