000323Q
G.F. 323
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the sale of foodstuffs. In addition to being in a position to control the quantity of supplies the Chinese authorities can, through their state trading agencies, control the price of food in the local market to ensure that they are not ousted from their commanding position in this market.
10.
Imports from Overseas In general imports from overseas manage to balance some of the commodities which China cannot supply in adequate quantities (e.g. beef cattle and edible oils) and supply the demand for higher quality foodstuffs from the foreign communities and from the more affluent sections of the Chinese community (milk, wheat, frozen meat etc.). No country is able to compete with the price of most Chinese supplies which are consumed in large quantities. For this reason importers are, and always will be hesitant to order supplies from overseas to meet temporary shortages of Chinese supplies in case such supplies resume before the order arrives. Local Chinese agencies are well aware of this situation and play on it.
11.
Local Supplies The most important foods produced locally are vegetables, marine fish, pork and poultry. Those will be dealt with individually below. There is a department of Government responsible for encouraging the productivity of local farmers and fishermen, but there is a limit to what it can achieve in the absence of any tariff or import control on food from China, which, owing to its vast resources of land and labour, will always be able to svamp the Hong Kong market and to undercut the price of local produce. Local agriculture does, to a large extent, depend on imported fertilizers and animal feed.
Means of Importation
12.
From China The transportation of food supplies from China is maintained :-
a) by a large fleet of junks and river boats which normally
arrive daily but are subject to weather conditions;
b) by railway from Canton and further north;
c) by ocean going vessels from the northern Chinese Ports;
d) to a lesser extent by road to and then by trolley (or herded in the case of animals) over the border bridge at Man Kam To.
It has been demonstrated that there is a degree of flexibility between these different routes but they are all subject to political control. (See the table at Appendix 1).
From Overseas
Overseas supplies arrive by ship.
Negligible
quantities of luxury foods are imported by air. At present freight costs there is no hope of air freight making any serious contribution to the supply of food.
Distribution of Food in Hong Kong
14.
Food supplies for Hong Kong can be placed in three categories fresh foods, frozen foods and dry foods. Each has particular distribution problems.
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