Rice:
4.
(c) That at 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.
The Administration is endeavouring to obtain some indication of the figure which the Companies have in mind as a fair rental for it would obviously be unsatisfactory to incur a liability of such a vague and indeterminate nature, This is especially the case as such reports as are available on the condition of the plant at the time of our re-occupation can easily be challenged by the companies, for only a report prepared by a consulting engineer could have any real value.
In the course of the negotiations the Administration has made it clear that they are not prepared to meet the salaries of members of the staff of the two companies who are at present absent from the Colony on leave. The negotiations are still continuing.
Price Legel:
28
The subsidisation of rice to maintain the price at 20 cents a catty is still being continued. Rice accounts paid by the Treasury for the period 26th September/15th October amounted to 25,416 piculs, costing $1,501,520.- or an average cost of 59.1 cents per oatty. According to information supplied by the Rice Controller, the average daily consumption amounted to 4,000 piculs, and on these figures it is estimated that the subsidy is costing $156,400 a day. This excludes any issue of free rice. There are still outstanding contracts for 15,445 piculs at varying rates from 55 cents to 45 cents a catty. Prices are showing some reduction, for when the subsidy was started, it was found necessary to pay 65 cents per catty.
Prices are still high, and where European Luxury goods are concerned, they are often fantastic. But within the last few days prices of foodstuffs have shown a slightly lower trend to the extent of perhaps 6%. No real improvement can, however, be looked for until supplies of all sorts and, particularly such commodities as wood for household fuel, charcoal, rice, peanut oil and other similar oils arrive in adequate quantities. This is the pressing need.
The prosperity of the Colony in the past depended on the fact that it was the recognised distribution centre for South China. It can only resume this role and regain its prosperity when it again possesses adequate stocks, always provided, however, that a satisfactory price level is maintained. Pending the arrival of further supplies which is, of course, the real solution to all our problems, every endeavour must be made to ensure that there is no further rise in prices, and that where possible costs are gradually reduced. To serve as a redistribution centre, Hong Kong must be cheap.
27.10.45.
(Sga.)
Chief Financial Adviser
(Civil Affairs)
No comments yet.
Private notes are available after approval.