TNAG-0042-FCO40-78-Future-Sovereignty-of-Hong-Kong-Defence-Review-Working-Party-1967 — Page 221

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FOOD SUPPLIES

There was a four-day stoppage of supplies from China

at the end of June. Food prices inevitably rose, but not

excessively, and subsequently quickly returned to normal.

It is clear that the local Communist can prevail on Chinese

suppliers to stop supplies for at least a limited period;

their efforts to disrupt internal distribution channels

were, however, much less effective. Reports were received

that a longer stoppage was being organised to begin on

17th July but this has not materialised. According to one

source a reason was that one of the largest Chinese importers

refused to take part without direct orders from Peking.

2.

The main conclusion which the Hong Kong Government

has drawn from the stoppage is the need to reduce Communis t

dominance over the supply and distribution of food by

encouraging the development of alternative sources of

supply. These are being examined urgently by the Hong Kong

Government. As soon

as the best alternative sources have

been determined, consideration will be given to the desirabil-

ity of imposing import quotas on supplies of certain food-

stuffs from China on lines which already exist in the case

of rice.

3. The Hong Kong Government also has under review the

desirability of introducing emergency measures to meet any

future attempt by the Chinese to cut off supplies.

These

include the stimulation of local production, the stockpiling

of essential foodstuffs and a rationing scheme.

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