TNAG-0011-FCO40-47-Kowloon-disturbances-1967 — Page 5

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(F) Eggs

Over 90 per cent of the 433,500 gross of fresh eggs consumed monthly come from China. Local production could be increased but not quickly.

(G) Poultry

Some 3,250,000 head of poultry (mainly chickens) are imported from China each month. There are no adequate alternative sources although large supplies of dressed and frozen chickens are imported from the U.S.A.

(H) Sugar

About 75 per cent of sugar imported comes from China. Present stock of 12,300 tons would last about one month. Alternative sources are available in Brazil, Singapore and Taiwan.

(I) Milk

Less than 10 per cent of tinned and powdered milk comes from China. At the end of May exceptionally large stocks were held in the colony, but an unknown quantity might at any time be re-exported unless controls are applied.

2. Our dependence on food from China is therefore substantial. Any sudden cessation of supplies from China would create chaos here even with the institution of a rationing scheme. Any long term arrangements to buy emergency supplies by air could be undertaken only if very substantial assistance were available in view of the distances and quantities involved and the inability of the great majority of the population to pay high prices for their food. If Chinese food supplies were to dwindle gradually alternative sources could probably be found in neighbouring countries and a detailed survey of potential sources of supply and the probable difficulties which would have to be overcome to tap them is now being undertaken urgently. However even in this case, where the cheapest means of transport could be used, the cost of food would be higher than at present. The increase if passed on to the consumer, would have its effects throughout the economy and ultimate results could be to price the colony's products out of the world market.

3. Possible forms in which assistance from M.M.G. could assist in meeting these problems might be:

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(a)

assistance with airlifting supplies from any source from which they could be readily obtained;

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(c)

naval protection for vessels in the fishing fleet;

assistance with freighting supplies particularly of meat, from Australia and other sources which might involve some measure of diversion of supplies from other destinations; in this connection consideration might be given to diversion to Hong Kong of Australian/Canadian wheat shipments to China;

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