TNAG-0841-FCO40-1050-Visit-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-Chi-1979 — Page 122

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5.

Another possibility is to secure additional supplies from China. During the last five years, Hong Kong imports of oil products from China has increased almost six fold, from 252,000 long tons in 1974 to 1,467,000 long tons in 1978. During that same period Hong Kong's total imports of oil products from all sources increased only by 31%. China is currently supplying 24% of Hong Kong's requirements in oil products.

6.

China's market share in various oil

products is as follows :

Product

Market Share

1974

1978

Jet A

0%

28.1%

Kerosene

17.2%

40.7%

Gas Oil

21.2%

66.2%

Diesel Fuel

0%

58.9%

Fuel Oil

1.7%

10.60

7.

The critical product is fuel oil which is used by the power companies. The power companies consume roughly 17,000,000 barrels during 1978 out of The a total consumption of about 28,000,000 barrels. major oil companies have indicated that beginning in April the supply of fuel oil to Hong Kong is likely to be reduced by about 15-20% assuming that the situation in Iran remains unsettled. This would mean a shortfall of 12,000 barrels/day.

8.

Sk

In the short term, the shortall can be met by drawing upon the security reserve maintained by the oil companies. Another possibility would be to enter

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