XN000022-1974-07-11 — Page 3

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THURSDAY, JULY 11, 1974

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HE SAID THAT THE GOVERNMENT SAW NO ADVANTAGE IN BECOMING A RICE IMPORTER ITSELF, ESPECIALLY AS IT HAD WITHDRAWN FROM DIRECT PARTICIPATION IN THE TRADE SOME YEARS AGO AFTER SUFFERING SUBSTANTIAL FINANCIAL LOSSES.

+THERE IS CONSIDERABLE EVIDENCE TO SUGGEST THAT THE COMMERCIAL IMPORTERS HAVE MADE A FAR BETTER JOB THAN THE GOVERNMENT DID OF IMPORTING RICE AT COMPETITIVE PRICES,+ HE SAID.

+IT WOULD BE A RETROGRADE STEP TO INVOLVE THE GOVERNMENT AGA IN IN THE RICE IMPORT TRADE. I HOPE THAT THE COUNCIL WILL BE ABLE TO AGREE THAT, IF THE DEPARTMENT CAN CONTINUE SUCCESSFULLY TO CONTROL PRICES AT LEVELS WHICH DO NOT PERMIT SPECULATION OR PROFITEERING, THEN IT WILL BE DISCHARGING ITS OBLIGATIONS TO THE CONSUMER.+

MR. JORDAN SAID THAT VARIOUS PROPOSALS HAD BEEN MADE BY THE COUNCIL WHICH WOULD, IF THEY WERE ACCEPTED, INVOLVE THE GOVERNMENT IN SUBSIDISING THE TRADE IN RICE WITH THE TAXPAYERS' MONEY. THESE WERE CONSIDERED UNDESIRABLE ON ECONOMIC GROUNDS AND THE POTENTIAL ADVANTAGE TO THE CONSUMER WOULD BE MARGINAL.

FOR INSTANCE, IF THE GOVERNMENT PROVIDED WAREHOUSES FOR THE RESERVE STOCK, THE COST OF RENTING STORAGE SPACE WOULD AMOUNT TO ABOUT $10.6 MILLION A YEAR.

HOWEVER, THE REDUCTION IN PRICE TO THE RETAILER WOULD BE LESS THAN TWO CENTS PER CATTY, AND IT WOULD BE IMPOSSIBLE TO ENSURE THAT EVEN THAT SMALL BENEFIT WAS PASSED ON TO THE CONSUMER.

MR. JORDAN SAID THAT THE GOVERNMENT FULLY ACCEPTED THE COUNCIL'S RECOMMENDATIONS THAT ALL IMPORTERS AND WHOLESALERS SHOULD BE LEGALLY REGISTERED. ACTION WAS NOW IN HAND, HE SAID, PROVIDE THE NECESSARY LEGISLATION TO REGISTER WHOLESALERS.

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HE SAID THAT THE COUNCIL HAD RECOMMENDED THAT IMPORTERS SHOULD NOT BE PERMITTED TO TRANSFER THEIR QUOTAS TO AGENTS. IN FACT IT WAS ALREADY ILLEGAL FOR A REGISTERED IMPORTER TO TRANSFER OR SELL HIS QUOTA RIGHTS WITHOUT WRITTEN PERMISSION FROM THE DEPARTMENT.

NO SUCH PERMISSION HAS BEEN GIVEN, HE SAID, AND THE RECORDS OF THE DEPARTMENT SHOW THAT ALL IMPORT DOCUMENTS ARE HANDLED BY THE REGISTERED IMPORTERS.

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SOME IMPORTERS, HOWEVER, DO USE AGENTS AND THESE AGENTS IN SOME CASES APPEAR TO DO THE BULK, IF NOT ALL, OF THE WORK. IT WAS THE VIEW OF THE DEPARTMENT THAT THERE IS NOTHING WRONG WITH THIS KIND OF WORKING ARRANGEMENT SO LONG AS IT DOES NOT WORK TO THE DISADVANTAGE OF THE CONSUMER. IF AN IMPORTER IS PREPARED TO SHARE THE NET PROFIT WITH AN AGENT, WHILST HAVING TO KEEP HIS PRICES COMPETITIVE, THE INTERESTS OF THE CONSUMER ARE NOT AT RISK.

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·/+HOWEVER T.............