XN000022-1983-11-01 — Page 3

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TUESDAY, NOVEMBER 1, 1983

CLOSE CHECK KEPT ON TEXTILE QUOTA SYSTEM

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THE TRADE DEPARTMENT WILL GRADUALLY STEP UP THE ENFORCEMENT OF RULES GOVERNING THE QUOTA SYSTEM AND PUBLICISE THE PENALTIES

IMPOSED ON QUOTA CIRCUMVENTION CASES TO DETER POSSIBLE FRAUDULENT ACTS IN TEXTILE TRADE.

THE MOVE IS IN PARALLEL WITH THE VARIOUS CHANGES BE ING INTRODUCED INTO THE REVISED QUOTA SYSTEM OVER THE NEXT FEW MONTHS, THE DIRECTOR OF TRADE, MR HAMISH MACLEOD TOLD A LUNCHEON MEETING OF THE ROTARY CLUB OF HONG KONG TODAY.

HE POINTED OUT THAT A RANGE OF OFFENCES COULD BE REVEALED BY TEXTILE CONSIGNMENT CHECKS AND VETTING OF THE DOCUMENTS, INCLUDING TRANSHIPMENT, UNDERGROUND TRANSFER AND MISDESCRIPTION,

+ THE NUMBER OF SERIOUS OFFENCES IS NOT GREAT, BUT WE ARE DETERMINED TO KEEP THIS SO. THE PENALTIES AVAILABLE ARE ADEQUATE, INCLUDING COURT FINES UP TO A MAXIMUM OF $500 000 AND IMPRISONMENT FOR TWO YEARS, FOFEITURE OF QUOTA, DEBARMENT FROM PARTICIPATION IN THE TEXTILES CONTROL SCHEME AND SUSPENSION OF ALL LICENSING FACILITIES FOR A CERTAIN PERIOD OF TIME.

+WHAT I WISH TO MAKE CLEAR IS THAT WE SHALL BE MAKING EVEN GREATER EFFORTS TO ENSURE THAT THE RULES ARE OBSERVED,+ MR MACLEOD EMPHASISED.

COMMENTING ON THE TEMPORARY RUSH A FEW WEEKS AGO BY SOME MEMBERS OF THE PUBLIC TO BUY VARIOUS FOOD STUFFS - ESPECIALLY RICE - WHEN THE HONG KONG DOLLAR WAS PARTICULARLY WEAK, MR MACLEOD STRESSED THAT RICE STOCKHOLDERS WERE REQUIRED TO KEEP RESERVE STOCKS, AND THAT STOCKS WERE ALWAYS AVAILABLE TO MEET ABOUT TWO MONTHS CONSUMPTION.

+FOR EXAMPLE, AT THE END OF SEPTEMBER, STOCKS WERE ABOUT 68 000 TONNES, COMPARED WITH AN AVERAGE DAILY CONSUMPTION OF ABOUT 1 000 TONNES. CLEARLY THIS IS MORE THAN ADEQUATE TO MEET FLUCTUATIONS IN DEMAND.+

HE FURTHER POINTED OUT THAT WITH RISING LIVING STANDARDS AND CHANGING TASTES, OVERALL RICE CONSUMPTION HAD REMAINED STATIC FOR YEARS AND THE PER CAPITA RICE CONSUMPTION HAD BEEN STEADILY DECREASING.

+NEVERTHELESS, WE RECOGNISE THAT RICE IS STILL A VITAL PART OF THE DIET AND HENCE WE SHALL CONTINUE TO ENSURE ADEQUATE RESERVES ARE MAINTAINED, FROZEN MEAT AND POULTRY ARE NOT SUBJECT TO SUCH TIGHT CONTROLS BUT AGAIN ADEQUATE STOCKS ARE MAINTAINED, + HE ADDED.

MR MACLEOD ALSO SAID THAT AS THE DIRECTOR OF TRADE, HE HAD THE POWER IF NECESSARY TO CONTROL THE PRICE OF THESE GOODS DIRECTLY OR INDIRECTLY.

+HOWEVER, IT IS NOT THE POLICY TO SUBSIDISE, BUT ONLY TO INTERVENE TO ENSURE THERE ARE NO UNREASONABLE AND UNJUSTIFIED FLUCTUATIONS IN PRICE.+

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