XN000022-1979-07-31 — Page 2

TUESDAY, JULY 31, 1979

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HIGH FUEL PRICES AND TIGHT SUPPLIES WILL STAY

*.***.

THE DIRECTOR OF DIL SUPPLIES, MR. DAVID JORDAN, SALD TODAY (TUESDAY) HIGH PRICES AND TIGHT SUPPLIES SHOULD NOT BE REGARDED AS A PASSING PHASE BY ASSUMING THAT THEY ARE HERE TO STAY.

SPEAKING TO MEMBERS OF THE FEDERATION OF HONG KONG INDUSTRIES AT ITS MONTHLY LUNCHEON TODAY, HE SAID THAT AT THE MOMENT THE GOVERNMENT HAD NO FURTHER LEGISLATION IN MIND.

THIS, HE SAID, WAS DUE TO HAVING ACHIEVED THE SAVINGS THAT WERE AIMED AT, AND THE ANTICIPATED NORMAL REDUCTION IN INDUSTRIAL AND DOMESTIC ELECTRICITY CONSUMPTION IN THE LATE AUTUMN.

HOWEVER, HE CONTINUED, AT THIS TIME OF THE YEAR COUNTRIES

·THAT HAVE. REALLY COLD WINTERS BEGIN TO STOCK UP FUEL, SO THAT THERE WOULD BE SERIOUS COMPETITION FOR THE LIMITED SUPPLIES OF FUEL OIL AVAILABLE.

REFERRING TO SUGGESTIONS THAT CHINA SHOULD BE ASKED FOR MORE OIL AND THAT WE SHOULD REKT OS MARKET FINGER, SOLVING THE PROBLEM. MR. JORDAN SAIDɛ +CHINA HAS OTHER CUSTOMERS FOR ITS OIL PRODUCTS — PARTICULARLY FUEL OIL OF WHICH IT DOES NOT HAVE A GREAT SURPLUS AND THESE OTHER CUSTOMERS ARE JUST AS HUNGRY FOR SUPPLIES AS IS HONG KONG.

+AS FOR MARKET FORCES, OIL PRICES ON THE SPOT MARKET ARE STILL 0 PER CENT AHEAD OF THE RECENTLY INCREASED 'POSTED' PRICES, AND IF THERE IS A SEVERE WINTER IN THE NORTHERN HEMISPHERE THIS YEAR, SPOT PRICES MAY WELL GO HIGHER STILL.

+THIS MEANS THAT WE SHOULD ALL COUNT THE COST OF ENERGY AND IN HONG KONG THAT MEANS, PRIMARILY, ELECTRICITY — AS SOMETHING WHICH WE SHOULD TAKE STEPS TO REDUCE OR, IF WE HAVE REDUCED IT ALREADY, TO KEEP DOWN,+ HE SAID.

MR. JORDAN POSED SOME PERTINENT QUESTIONS TO HONG KONG'S INDUSTRIAL AND COMMERCIAL COMPANIES, ARCHITECTS AND THE GOVERNMENT BY ASKING THE FOLLOWING 1

* HOW MANY INDUSTRIALISTS HAVE TAKEN STEPS NOT JUST TO

REDUCE THEIR ELECTRICITY CONSUMPTION, BUT TO ACHIEVE THE MAXIMUM ECONOMIES CONSISTENT WITH EFFICIENT OPERATION?

* HOW MANY CONSUMERS OF FUEL OIL HAVE HAD THEIR STEAM

RAISING AND USING FACILITIES CHECKED, TO SEE THAT THEIR FUEL BURNING EFFICIENCY IS KEPT AT A HIGH LEVEL?

* HOW MANY HAVE MADE SURE THEIR BOILERMEN ARE PROPERLY

TRAINED TO ACHIEVE THAT EFFICIENCY?

* HOW MANY ARCHITECTS CONSIDER THERMAL EFFICIENCY WHEN

DESIGNING A NEW BUILDING?

* WHAT CHANGES TO THE BUILDINGS ORDINANCE BY THE GOVERNMENT

ARE NECESSARY TO ALLOW OR PERHAPS EVEN OBLIGE ARCHITECTS TO DESIGN BUILDINGS WHICH ARE LOWER USERS OF ENERGY THAN THOSE BUILT TODAY?

REFERRING