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Tuesday, December 11, 1973
I come now to oil and its products. I need not outline the
background of our present problem of oil supply and storage, since events
in the Middle East have filled our newspapers in recent weeks, and you
are all aware of the potential gravity of an interrupted flow of oil to
Hong Kong. Again we must rely on outside sources and are largely dependent on
the skill of our buyers and suppliers to obtain a fair share of the ofl.
products that we need, But what your Government can do I assure you it
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is doing, and it is in close touch with Her Majesty's Government and other
Governments, I should like to mention the helpful and sympathetic attitude
of Her Majesty's Government and of the Chinese Government.
The world shortage in oil could affect us in various ways, Firstly,
and most directly and immediately, supplies for consumption in Hong Kong
could and probably will be reduced. In the first place every one of us
must do what he can to help reduce demand. Substantial savings can be
made simply by reducing waste. At this point in time, it is impossible.
to judge whether we in Hong Kong are going to face seriously reduced
supplies of oil and oil products. But we think it prudent to achieve a
reduction in consumption of 10-15% now, in anticipation of reduction in
supplies later. If reduction in supplies is of this magnitude we may expect
personal inconvenience rather than economic damage to result. But damage
could come from the less direct impact of the world shortage.
For instance, in the medium term, world oil shortage must affect
our supply of oil-based raw materials certainly as to price and probably
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as to volume. The first need not necessarily affect our competitive position
but the second couldaffect our earnings.
/Furthermore