Tuesday, March 19, 1974

RICE SUPPLY SITUATION DISCUSSED

Arrangements to ensure a stable rice supply situation avoiding

price speculation in the light of any further increases in import prices

for rice were discussed today by the Rice Advisory Committee.

Mr. Jimmy McGregor, Deputy Director of Commerce and Industry,

said after the meeting that it must be assumed that the present upward

trond in the international price of rice would continue for some time.

Hong Kong would be affected in the same way as all other importing countries.

It was important, therefore, to ensure that the announcement

from time to time by exporting countries of price increases did not give

rise to speculative activity in the rice trade in Hong Kong, leading to

public fear of shortage.

The committee has agreed that the Commerce and Industry Department

must use its legal powers to enforce sales of rice, if necessary, by importers

to wholesalers and retail outlets to meet consumer demand.

"If sufficient rice is sold into the system by importers this makes

it completely unnecessary for any panic-buying by the public," added Mr.

McGregor.

Written guarantees have now been provided by wholesalers that they

will not exceed the $2 per picul mark-up agreed by the committee,

Mr. McGregor said that firm action would be taken against any

wholesaler demanding undercover paymente.

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