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Wednesday, February 13, 1974

The Financial Secretary pointed out that statistics on oil stocks

in Hong Kong could fluctuate widely between particular dates due to slight

changes in the schedule of tanker deliveries.

Although stocks rose between mid-December and the end of January,

because the anticipated cutback in supplies did not occur until the end of

January, the 10 per cent cutback from traditional sources had now begun.

It was only prudent that the percentage reduction in consumption

should be kept above the expected percentage reduction in supplies because

we could not be sure in present world oil uncertainties that the cutback

would only be 10 per cent.

"The outlook could change at very short notice for reasons beyond

our control," he said.

In reply to a question from Dr. the Hon. S.Y. Chung, Mr. Haddon-Cave

gave a list of comparative figures for the stock level of various oil products.

In September 1973, the stocks of kerosene were good for about 44 days

of normal consumption, while at the end of last month, they were sufficient

for 49 days.

The stocks of petrol were sufficient for 36 days at the end of last

month, compared with 30 days at the end of last September, while the stocks

of automotive and industrial diesel oil were sufficient for 30 days at the

end of last month, three days less than at the end of January last year.

Mr. Haddon-Cave, emphasised that variation in these stock levels

should not give anxiety because it could be due to changes in delivery

schedules, and besides it was expected that additional supplies were to

start coming from China towards the end of this month.

"There is every reason to believe that stocks will be maintained at

satisfactory levels," he said.

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