XN000022-1980-12-30 — Page 2

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TUESDAY, DECEMBER 30, 1980

OIL RESERVE SHIP ARRIVES IN HONG KONG

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HONG KONG'S FUEL OIL RESERVES WILL BE INCREASED BY THE ARRIVAL IN HONG KONG WATERS TOMORROW (WEDNESDAY) OF THE TANKER +STRAITS DAHLIA+ WITH A CARGO OF OVER 70 000 TONNES OF FUEL OIL.

A GOVERNMENT SPOKESMAN SAID THE OIL HAD BEEN PURCHASED BY OWENSBORD ENTERPRISES LTD., THE COMPANY SET UP BY THE GOVERNMENT, WITH THE COOPERATION OF THE TWO POWER COMPANIES AND ESSO AND SHELL, TO MANAGE A TEMPORARY FLOATING RESERVE OF FUEL OIL FOR ELECTRICITY GENERATION.

THIS OIL WILL BE STORED ON BOARD THE STRAITS DAHL 1A+ UNTIL LATE IN 1981, WHEN THE NEW LAND TANKS NOW BEING CONSTRUCTED AT THE NEW POWER STATIONS ON LAMMA ISLAND AND AT CASTLE PEAK WILL BE COMPLETED AND AVAILABLE FOR LONG-TERM STORAGE.

THE SPOKESMAN SAID THE OIL HAD BEEN PURCHASED ON THE SINGAPORE SPOT MARKET ON DECEMBER 11 AT A PRICE OF US$241 PER TONNE, WHICH WAS IN LINE WITH MARKET RATES PREVAILING AT THAT TIME.

THE STRAITS DAHLIA+ WILL BE MOORED WEST OF THE NINEPIN GROUP OF ISLANDS AND ALL NECESSARY PRECAUTIONS AGAINST POLLUTION ARE BEING TAKEN BY OWENSBORD ENTERPRISES LTD. AND THE MARINE DEPARTMENT.

THE SPOKESMAN SAID IT WAS LIKELY THAT SOME MORE PURCHASES OF OIL WOULD BE MADE TO PROVIDE A FURTHER INCREASE IN HONG KONG'S RESERVES OF FUEL OIL FOR ELECTRICITY GENERATION. HE NOTED THAT 70 000 TONNES REPRESENTED ABOUT 10 DAYS' CONSUMPTION AT THE CURRENT LEVEL OF DEMAND.

HE SAID THAT, AS HAD ALWAYS BEEN PLANNED, THE COST OF THE TANKER STORAGE SCHEME WOULD BE MET THROUGH THE FUEL VARIATION CLAUSE, THOUGH THE PURCHASE PRICE OF THE OIL WOULD NOT AFFECT CONSUMERS UNTIL IT WAS BURNT IN THE POWER STATIONS, WHICH MIGHT NOT TAKE PLACE FOR SOME TIME. THE IMPACT OF THE SCHEME ON CONSUMERS' BILLS WOULD BE AN INCREASE EQUIVALENT TO AROUND ONE HALF OF ONE PER CENT.

OCTOBER TRADE: PRICE AND VOLUME MOVEMENTS

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ECONOMIC STATISTICS RELEASED TODAY BY THE CENSUS AND STATISTICS DEPARTMENT SHOWED THAT THE PRICES OF DOMESTIC EXPORTS AND IMPORTS ROSE BY 9 PER CENT AND 7 PER CENT RESPECTIVELY IN OCTOBER THIS YEAR COMPARED WITH THE SAME MONTH LAST YEAR.

AS A RESULT OF THIS RISE, THE TERMS OF TRADE INDEX (EXPRESSED AS A RATIO OF THE DOMESTIC EXPORT PRICE INDEX TO THE IMPORT PRICE INDEX) IMPROVED SLIGHTLY BY 1 PER CENT.

HOWEVER A LARGER INCREASE IN VOLUME WAS REGISTERED FOR IMPORTS (+8 PER CENT) THAN FOR DOMESTIC EXPORTS (+6 PER CENT). ON THE OTHER HAND, THE PRICES OF RE-EXPORTS INCREASED BY 7 PER CENT, WITH VOLUME UP BY 50 PER CENT, SO THAT FOR TOTAL EXPORTS, PRICES ROSE BY 8 PER CENT AND VOLUME ROŠE BY 17 PER CENT.

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