DEPARTMENT OF SUPPLIES, TRADE & INDUSTRY ANNUAL REPORT
1948/9.
I. SUPPLIES.
General.
1. Although all imported commodities other than rice bad been removed from international allocation procedure before the end of the year, world shortage continued in many cases and the Department continued to import and distribute throughout the year the Colony's requirements, in whole or part, of rice, rice bran, flour, wheat, sugar, butter, fresh meat, coal and coke, and cotton
yarn.
Food.
The structure of the rationing scheme remained largely unaltered, rice and flour being distributed through one main distributor (Wing Wo Hing) and a group of 153 specially appointed retail shops, and sugar through another main distributor (Messrs. Butterfield & Swire) and a separate chain of retailers. At the end of the year 215,513 family rice ration cards were in existence, covering 1,001,497 persons, out of a total population estimated at 1,800,000. Rations for non-rice ration card holders were issued through the Dairy Farm, Ice & Cold Storage Co., Ltd. and Lane, Crawford, Ltd. Ration scales during the year are shown in Annex I.
A. Rice.
3. Procurement. Rice continued to be allocated by the International Emergency Food Committee, of which a Sub- Committee sat monthly in Singapore to arrange shipping programmes against actual availabilities at the ports. Hong Kong's quota for the year 1948 was 115,000 tons; actual availabilities for shipment fell only little short of this but 10,000 tons allocated from Egypt was rejected owing to unsuitability for Hong Kong and transferred to Malaya. An allocation of 60,000 tons was made to Hong Kong for the first half of 1949,
4. Actual receipts during 1948-9 were as follows (shipped weights in metric tons):-
Siam
Burma
French Indo China
Total
50,735
28.001
11,871
90,607
оо
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Rice from Siam continued to be procured on Hong Kong's behalf by the U.K, Ministry of Food's agents in Bangkok, while Burma rice was shipped by the Agricultural Marketing Board of Burma in conjunction with the Ministry of Food. Indo-China rice was purchased direct from the official consortium of exporters in Saigon, A. B. David & Co. acting as agents of the Hong Kong Government.
6.
There was considerable improvement both in the quality of rice received and in landed weights. The average loss in transit from Rangoon fell from 2.18% in 1947-8 to 1.4% in 1948-9 and from Bangkok from 4.76% to 2.4%. See Aunex III.
7. Prices. The export price of rice from both Siam and Burma was unchanged. The price of Indo-China rice was slightly higher owing to the unsettled state of the country. The ration price remained 54 cents per catty for average grades. It became impossible, however, owing to the increase in free market supplies and the drop in their price, to charge this average price for all grades of rice, and, on occasion, lower grades were issued at prices ranging down to 45 cents and special grades at 60 cents.
8. Distribution. Hong Kong's increased allocation and its implementation by supplying countries made it possible to increase the ration from 5.6 taels per day per person to 7.2 taels on 1st August, 1948. The irregularity of the outflow of supplies combined with the comparative regularity of consumption require- ments made it necessary at times to carry excessively large stocks and caused considerable storage problems. The uncertainty of the future made it undesirable to increase the rationed population or the basic ration; while towards the end of the year the position was complicated by a reduction in normal ration offtake caused by an increase in free market rice and the consequent reduction in free market prices (which actually fell below the import cost at one period towards the end of the year), Several steps were taken to relieve the situation:-
(a) In June, 1948, approximately 10,000 tons were lent to the Philippine Republic which was experiencing a shortage. This was followed in November by the loan of 9,000 tons to Shanghai; this loan was made, however, to relieve the food situation in that city, not to relieve the storage situation in Hong Kong, stocks by then having fallen nearer to the minimum safety level.
(b) Special bonus issues of rice were made to the rationed population, particularily at festivals. These totalled 19 catties per person over the full year.
(c) Rice was issued to the free market through rice importers' and merchants' associations. This step was useful in keeping free market prices within controlled limits.
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9. An extra heavy workers' ration of catty per day continued to be issued, although there was little demand in spite of a reduction in price from 60 cents to 54 cents per catty.
10. Total issues of rice were as follows:-
Rations Fisheries
+
L
Charitable Organisations
Ships
Heavy workers' extra rations
Establishments
Free market
Total (excluding foreign loans)
48,449 tons
658
93
335 >>
458 JJ
876
7,912 12,040
JJ
70,728 tons
11. Stock at the end of the year was 56,452 tons (excluding loans totalling 14,615 due for repayment), representing four and a half months' stock at full consumption.
12. Annex II gives details of receipts, issues and stocks of rice.
B. Flour.
13. 14,646 tons of Australian flour was imported during the year and 15,353 tons distributed, leaving a stock of 2,616 tons or over two months' consumption at the end of the year.
14. The ration of four had been reduced during the previous year as the rice ration was increased and stood at 1.6 taels per person per day at the beginning of the year; the price was 56 cents per eatty or 42 cents per lb. Offtake from the ration fell severely with the increase in free market rice supplies and flour was in consequence derationed as from 15th September, 1948, distribution of Government imported supplies being put in the hands of 14 importers who had participated in the 1941 emergency stock scheme. The retail price was fixed at 40 cents per lb.
15. At the same time arrangements were made for the release of approximately 300 tons of commercially imported hard wheat flour per month for sale to bakeries, noodle-makers, etc.
16. Annex II gives details of receipts, issues and stocks of flour.
C. Wheat.
17. Two shipments totalling 297 tons of Australian whole wheat were received for milling locally into Atta for the Indian community.
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D. Sugar.
18. All sugar requirements for internal consumption continued to be imported on Government account under the U.K. Ministry of Fook bulk purchase arrangements. There was a welcome increase in the proportion of sugar supplied in the shape of refined white sugar, 7,898 tons of this type being received as against 6,025 tons of raw brown sugar.
19. The ration was maintained at 2 lbs. per month, except for a special issue of 4 lbs. of brown sugar in April, 1948; brown sugar was issued on seven occasions, white sugar on five occasions. The price of white sugar remained at 45 cents per lb. but brown sugar was reduced from 40 cents to 35 cents per lb.
20. Total issues of sugar were as follows (in tons) :—
Brown
White
Total
Rations
4,361
3,935
8,296
Ginger manufacture
1,383
1,383
Other manufactures
780
510
1,240
13
13
5,104
5,828
10,932
Restaurants
Total
21. Stocks at the end of the year were 4,550 tons of white and 4.946 tons of brown sugar. In view of this very satisfactory position, it was decided to deration sugar on 1st April, 1949.
22. Annex II gives details of receipts, issues and stocks of
sugar.
E. Butter.
23. There was a slight increase in the import allocation of Australian and New Zealand butter in 1948, but supplies were still only a fraction of demand. Approximately one-third of the allocation was imported and distributed through commercial channels in the form of tinned butter. The remainder was imported as fresh butter on Government account; this was distributed partly through the rationing scheme, partly by free sale on a restricted basis through a limited number of retailers. The price of butter at the source rose gradually during the year; the retail price in Hong Kong increased from $2.10 to $2.40 per lb.
F. Meat.
24. The question of returning the procurement of meat supplies from overseas to commercial channels was considered in conjunction with the General Chamber of Commerce. As, however, shortage of refrigerated space made it necessary to make special arrangements for bulk consignments, it was agreed that Government procurement should continue for the time being. Another relevant factor was cost; it was estimated that supplies purchased on a commercial basis would cost about 15% more than Government supplies.
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25. One large consignment of 2,400 tons was received toward the end of 1948 in a specially chartered vessel, and several other smaller consignments were received in liners. Total sales amounted to about H.K.$4 million. Stocks at the end of the year represented about nine months' supply at current consump- tion.
Fuel.
A. Coal and Coke.
26. The problem ceased to be one of absolute shortage, although coal from most sources remained subject to export allocation and control, and became rather one of obtaining coal of adequate quality at the lowest possible price. While importa- tion and distribution remained in Government hands, actual purchase and shipping arrangements continued to be made on behalf of the Department by the main pre-war importers, except in the case of Japanese supplies which were purchased on Government to Government basis, As from August, 1948, procurement of gas coal from India was left to the gas company, the Department merely setting up the necessary export quota.
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27. A total of 258,209 tons was imported during the year and a total of 286,045 tons was sold, stocks held by the Department falling from 55,794 tons at 1st April, 1948, to 27,958 tons at 31st March. Sources and types were as follows:-
Type
Source
Japan South Africa
India
French Indo-China
109,412 tons
46,103 95,418 3,554
11
Bituminous lump 153,292 tons Bituminous dust 84,823 Anthracite dust 13,716
11
+1
1
Gas
3,358
Netherlands East
Indies
3,722
Coke
3,020
39
Total
258,209 tons
Total
258,209 tons
28. Bituminous lump. Supplies of bituminous lump were adequate throughout the year and the general improvement in the position enabled a reduction to be effected in the level of stock carried. Supplies came in roughly equal proportions from Japan, India and South Africa; one small consignment was received from Palembang. The quality of Japanese coal tended to fall, while that of Indian varied considerably. Unfortunately, no allocations of South African, which is the most reliable in respect of quality, were received after July, it being considered by the London Coal Committee that supplies of Indian and Japanese coal should be adequate to meet requirements. Indian coal was allocated by the Indian Government in the shape of a block quota for South East Asia, the allocation between territories being in the hands of the H.M. Commissioner General at Singapore,
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