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FRIDAY, OCTOBER 12, 1979
THE TWO BILLS MAKE SOME OTHER CHANGES TO THE LIST OF SPECIFIED LIQUID ASSETS FOR BOTH BANKS AND DEPOSIT-TAKING COMPANIES THESE INCLUDE A NEW POWER FOR THE FINANCIAL SECRETARY TO SPECIFY AS LIQUID ASSETS CERTAIN MONEY MARKET INSTRUMENTS. THIS WILL ENABLE THE FINANCIAL SECRETARY TO SPECIFY, FOR EXAMPLE, HONG KONG DOLLAR CERTIFICATES OF DEPOSIT AS LIQUID ASSETS WHEN HE JUDGES THAT THE SECONDARY MARKET IN THESE INSTRUMENTS IS MORE DEVELOPED.
THE BILLS WILL BE INTRODUCED IN THE LEGISLATIVE COUNCIL ON OCTOBER 17, AND ARE EXPECTED TO BE BROUGHT INTO FORCE ON JANUARY 1, 1980.
NEW LEGISLATION TO REGULATE RICE TRADE
FOR PROTECTION OF CONSUMERS
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THE RESERVED COMMODITIES ORDINANCE AND ITS SUBSIDIARY REGULATIONS, WHICH ENSURE PROPER AND ORDERLY DISTRIBUTION OF RICE FROM IMPORTERS THROUGH WHOLESALERS AND RETAILERS TO CONSUMERS, WILL COME INTO EFFECT ON NOVEMBER 1.
*THE NEW LEGISLATION CONFERS ADDITIONAL POWERS ON THE DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS TO, IF NECESSARY, SET THE PRICE AND CONTROL THE SALE OF RICE BY REGISTERED IMPORTERS AND WHOLESALERS, + A GOVERNMENT SPOKESMAN SAID TODAY (FRIDAY).
+THIS IS TO ENSURE NO UNDUE STOCKHOLDING SPECULATION OR PROF ITEERING TO THE DETRIMENT OF CONSUMERS, HE ADDED.
THE SPOKESMAN STRESSED THAT THERE IS NO RICE SHORTAGE IN HONG KONG AT PRESENT.
SAID.
+IN FACT, THE OUTLOOK FOR WORLD RICE SUPPLIES IS GOOD,✦ HE
THE NEED TO CONFER ADDITIONAL POWERS TO THE DIRECTOR AROSE FROM EXPERIENCE IN 1973 AND 1974 WHEN THERE WAS A WORLD-WIDE SHORTAGE OF RICE AND SHARP INCREASE OF RICE PRICES. THERE WERE INDICATIONS THEN THAT SOME RICE TRADERS WERE ATTEMPTING TO MANIPULATE THE SUPPLIES AND PRICES.
AT THAT TIME, THE DIRECTOR OF COMMERCE AND INDUSTRY HAD NO LEGAL POWERS TO INTERVENE BUT WAS ABLE TO REACH A VOLUNTARY AGREEMENT WITH THE RICE TRADE WHEREBY MAXIMUM MARK-UPS WERE FIXED IN RESPECT OF PRICES AT WHICH IMPORTERS AND WHOLESALERS WOULD SELL.
COMMENTING ON THE NEW LEGISLATION, THE SPOKESMAN SAID THAT THE DIRECTOR OF TRADE, INDUSTRY AND CUSTOMS WOULD NOT INTERVENE IN THE RICE MARKET UNLESS HE HAD CLEAR EVIDENCE OF SPECULATION, HOARDING OR PROFITEERING.
UNDER THE