XN000022-1974-03-05 — Page 5

Tuesday, March 5, 1974

STATEMENT ON RICE SUPPLY SITUATION

The Commerce and Industry Department today issued the following

statement to clarify the rice supply situation, and the functions of the

rice control scheme:-

STOCK

Rice stocks of all grades are completely adequate to meet any

consumption demand in Hong Kong. There are over 74,000 tons in stock

and a great deal more in the hands of wholesalers and retailers. Normal

consumption is about 1,000 tons a day, therefore there is at least 74

days' supply in stock.

Rice is arriving in Hong Kong at a satisfactory rate and there is

no fear at the present time of any serious reduction in our stockpile and

therefore our ability to continue to meet demand.

The second quarter quotas will be issued shortly. These will

ensure an adequate supply and stockpile.

PRICES

The Government, through DC & I, has a legal control over registered

importers which, although designed to ensure a satisfactory import and sale-

for-consumption pattern, also enables the department to have an influence on

the prices for the various grades of rice offered by importers to wholesalers

DO & I does not have any legal control over prices at the wholesale

and retail level, although it is possible for the department to instruct

importers not to sell rice to any wholesaler found to be seriously speculating

on prices.

/DC & I can ...............**