XN000022-1974-03-27 — Page 22

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Wednesday, March 27, 1974

NO DIFFICULTY OVER OBTAINING RICE SUPPLIES

Market Forecasts Good For 1974

The Director of Commerce and Industry, Mr. David Jordan, assured

the Legislative Council today that he did not foresee any difficulty in

obtaining adequate supplies of rice to meet Hong Kong's needs.

Imports are coming in at a satisfactory rate, he said, and market

forecasts for 1974 "were good and they remain good."

Mr. Jordan stressed that the prime function of the rice control

scheme, which had worked remarkably well during the 19 years it has been

in operation, was to ensure an adequate supply of rice.

"Despite fluctuating harvests in Asia and famine Trom time to time in many areas during this period, Hong Kong has never had to resort to rice rationing nor has there been, to my knowledge, any time at which our stockholding was materially below the basic reserve figure," he said,

Mr. Jordan pointed out that the rice control scheme was not

devised to control prices, but only to provide a cushion against violent

fluctuations.

world

"The rice control scheme cannot insulate the consumer from the

retail prices of rice must reflect the price movement in the

international market for rice," Mr. Jordan said.

"At the same time, the public is understandably concerned about the

possibility of deliberate manipulation of stocks, supplies and prices by

importers, wholesalers or retailers within the rice trade, using the Rice

Control Scheme in order to squeeze unreasonably high profits from the consumer.

"They have