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12. Water supplies from China will romain of some importance to the
Colony until next year when tho now Plover Cove Rosarvoir comos into
oporation, trobling tho wator storage capacity. Evon now, given normal
rainfall in the prosent rainy season and strict rationing, Hong Kong
should be able to last out on its own resources through tho noxt dry
soason ovon if the Chinoso fail to resume water supplies in October under
the existing agrocnent. If, however, to rains fail this year (and they
have been well below average so far) and China rofuses to make further
supplies available, a very serious vator situation would ariso. On the last
occasion (1963-1964) Hong Kong nooded to replenish supplies by means of a
water-lifting oporation, a floot of tankors was used to bring brackish
water from the lower roachos of the Canton River, by permission of tho
Chihose Government. This was a vory exponsivo operation. It would bo
even more expensive and have to be mounted on a much groater scalo if
Hong Kong had to turn to sources of wator from other countries (e.g. Japan
or the Philippines). Both hero and in Hong Kong wo are looking into tho
possibilities of such an oporation, which would be greatly complicatod
by the prosent shortage of tankors.
13. Hong Kong has in the past lived through threats of this kind, when
ossential supplies have failed and life has not been impossiblo although
strict rationing has boon necessary, In other circumstances (o.g.
during the Japanese occupation, thon there was an acute food shortago)
shortages have boon solf-regulating in that pooplo have boon induced
to return to their honos in China. It seems unlikely that in prosont
circunstancos tho Chinese Government would permit such an oxodus and, in
any caso, for a very largo proportion of the population today Hong Kong
is the end of the road.
14. Trado Enbarro. Domestic oxports to China aro nogligible and ro-
exports account for only 0.7% of total oxports. China is Hong Kong's
principal supplior, providing 27% of all imports; nearly 50% of those
imports are foodstuffs, other important categories being toxtilo yarn,
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