CO129-591-20 Reports on current situation 18-10-1945 - 7-11-1945 — Page 68

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not high compared with the 1938 average of 40,000 piculs a month but only about 1/6th of the pre-war Junk Trawlers have survived the occupation. The scheme is being oper: tud on a co-operative basis under the direction of rofessor Herklots of the Hong Kong University, and the intention is that the profits should be used for the benefit of the industry. All fish received is sold by auction to the retailers thus eliminating tho "lans" who used to absorb a large percentage of the profit. Most of the retailers are not at present in a position to pay in cash for their fish at the time of purchase and they can usually only pay twenty-four hours in arrear. Henge some working capital was necessary to enable the fishermen to be paid inmediately so that the fishing fleet could put to see again without delay. The Cooperative Society is financed by means of a commissior of 6% charged on all wholesale auctions of fish and it is expected that the Dociety will be in a position to repay the advance made from Government funds for working capital within a few months.

Vegetables fro A scheme for the Lurketing of vegetables from the New Territories: New Territories on cooperative lines is also under

consideration, and it is hoped will, in time, produce a plentiful supply of vegetables at a reasonable cost. Before the war the producers only got a small percentage of the profits of sale, the bulk being absorbed by the middle man.

Electnes

Public Utility

The Companies felt that they could not in fairness Companies: to their shareholders agree to operate at a loss which

would almost certainly be necessary in the early stages, if the declared policy of the administration of keeping down the cost of living was to be pursued. Coal supplies were

very precarious and prices were very high. There were also certain other uncertain factors.

To start the power stations functioning again

it was-and still is - necessary to loan then R.A.F. personnel. The litary Administration has no desire to take over the Operation of these companies completely but as it is essential that they should be kept in operation, it has started negotiations with both concerns on the following lines:-

(a)

(b)

( ၁ )

The Administration should for a period of six months (with option of renewal) meet their operating costs, and receive all earnings.

That the companies should continue to operate under their board of directors, but under the general direction of the Military Administration, and

That the end of the period, a fair rental should be fixed by arbitration in respect of the use of the companies' property and plants: the companies, agreeing on their part that any such rental should not be distributed to the shareholders, but should be used towards the cost of a long term rehabilitation scheme.