XN000022-1974-03-27 — Page 23

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Wednesday, March 27, 1974

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"They have a right to be concerned and I have a responsibility

to make sure that this does not happen or that if it does

malpractice arises -- that it is quickly stopped."

if some

Mr. Jordan said that in the past it had not been necessary to

try to establish maximum prices.

The present problem with prices however, was much more serious

than earlier ones. Rice prices across the world have increased during the

past year continuously and massively.

Despite good harvests and the prospect of very good crops again

this year, prices were likely to continue to rise. Exporting countries

face massively increased bills for imported oils and oil-based products

and must try to earn more from their exports to balance their accounts.

World-wide inflation has its effect on every commodity.

Mr. Jordan continued: I cannot see any erly end, therefore, to

the upward movement of rice prices and we must plan on the basis that the

trend will continue for some time. The opportunity for speculation is,

of course, greater in a rising market.

"I should be failing in my duty to the public if I did not recognise

this fact and accept that a Government-administered rice control scheme

must protect the public from malpractices of any kind.

"To increase the supply to the market is not enough in these unusual

I must also be able to influence prices to the consumer.

circunstances:

That means an internal system by which I can control the maximum mark-up

taken by the importer, wholesaler and retailer.

It also