XN000022-1974-04-10 — Page 18

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KALES TAY, APRIL 10, 1974

WHEAT AND FLOUR STOCKS SUFFICIENT

FOR TWO MONTHS' CONSUMPTION!

FF

STOCKS OF UREAT AND FLOUR HI HONG KONG LEPRESENT AT ANY ONE TIME ABOUT TUO MONTHS' CONSUMPTION OF FLOUR, WHICH AMOUNTS TO SOME 18,000 METRIC TONS, THE ACTING DIRECTOR OF CONMERCE AND INDUSTRY, THE HON. JAMES MCGREGOR, SAID TODAY.

HE TOLD THE LEGISLATIVE COUNCIL THAT THIS APPEARED TO BE THE PRESENT STUCK POSITION, UITH A FURTHER 9,000 TO 10,000 METRIC TONS IN TRANSIT TO HONG KONG.

+1 HAVE BEEN ADVISED BY THE MANAGEMENTS OF OUR THREE FLOUR MILLS AND LEADING BAKERIES THAT TILIE IS NJ PIJBLE.. OF SUPPLY AT PRESENT, HE SAID. ALL APPEAR CONFIDENT THAT THERE WILL BE NO PROBLEM EITHER IN THE LONTHS AHEAD. I BELIEVE THAT BOTH THE PRESENT STUCKS AND SUPPLY PUSITION ARE SATISFACTORY.+

MR. MCGREGOR, REPLYING TO A QUESTION! FROM THE HON. HILTON CHEONG-LEEN, SAID THAT BULK STORAGE OF WHEAT AND FLOUR IS EXPENSIVE IN HONG KONG ALD BOTH CO...ODITIES ARE PERISHABLE PRODUCTS.

FOR THESE REASONS, IMPORTERS AND BULK USERS APPARENTLY PREFER TO REGULATE THEIR SUPPLIES SO THAT THEY ARRIVE FREQUENTLY AND IN RELATIVELY SMALL ALQULITS.

HE SAID THAT IMPORTED FLOUR PRICES AVERAGED HK$563 A METRIC TON DURING JANUARY 1973. BY JANUARY THIS YEAR THE AVERAGE PRICE HAD, RISEN TO HK$1,222 PER METRIC TON, AN INCREASE OF 117 PER CENT.

A LARGE PROPORTION OF OUR DOMESTICALLY CONSUMED FLOUR WAS PRODUCED BY MILLING IMPORTED WHEAT, THE AVERAGE C.1.F. PRICE FOR WHICH ROSE FRO.1 HK$524 A LETRIC TON 10) JANUARY 1973, TO HK$962 PER METRIC TON III JAKULRY 1974, AN INCREASE OF 84 PER CENT.

MR. MCCRECOR ADDED: +A SMALL BUT VELCOME REDUCTION IN PRICE FOR IMPURTED WHEAT AND FLOUR DURING THE FIRST QUARTER OF THIS YEAR HAS, I AM SORRY TO SAY, BEEN MORE THAN OFFSET BY HIGHER FREIGHT RATES.

+THESE INCREASES HAVE BEEN REFLECTED | THE PRICE OF BREAD REACHING THE CONSUMER.+

BREAD WHICH COST THE HOUSEWIFE 80 CENTS PER POUND IN JANUARY 1973, HAD INCREASED TO $1 A POUND BY OCTOBER 1973 AND IS NOW $1.40 A POUND, BUT THIS SCALE OF INCREASE IS SIMILAR TO THOSE FOR WHEAT AND FLOUR, HE SAID.

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