FO371-46258 — Page 49

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available for requisitioning, while the railway authorities started a single freight train each day from the Chinese border to the city on September 19th for the purpose of tapping the sources of supply into the hinterland, But, as in the past, it was clear that Hong Kong must in the future depend for the bulk of its food on supplies brought in by water. What local shipping had been left by the Japanese was in poor condition, but the Shipping Board encouraged junk owners to start operations by granting free licences and by making available fuel supplies. But the absence of a respectable cu'rency definitely prevented any quick recovery of local food supplies. The following tables give some indication of the manner in which supplies are now coming into the Colony from the Delta and Macau. There are at present 8,000 tons of junk shipping operating,

Rice Vegetables Salt

Sept.1 - 10th.

400 tons

Sept. 11th

780 tons 192

20th.

ETT

Peanut 011 Sugar

Ground Nuts Wheat Beans

66

It has been fortunate that privately, held stocks were sufficient to cater for the demands of the market, and the Food Controller has not been compelled to draw on any of the stocks under his control before 13th September 1945, except for the purposes of feeding essential services. Stocks of European type foods are particularly low, but most of the European population is being repatriated and Military personnel will presumably be fed from service rations.

PRESENT POLICY,

The following steps have been or are in the process of being taken with regard to the food situation in the Colony,

8,000 tops

(1) To tap Delta supplies as far as possible. of junk shipping is already in operation, and effects of this service should be more marked now that Hong Kong has a currency of its own, The full effect of this measure will not, however, be possible to estimate for another month. Meanwhile every effort will be made to put further junks into service in this area, and to extend the service as far as shipping facilities permit to Kwong Chow Wan and Swabue, Carton, Swatow, and Muchow.

(2)

To control the price of rice.

With introduction of the

new Hong Kong dollar (13/9/45) the price of rice was fixed at 20 cents percatty. This is with the object of stabilising prices and theéconomic structure of the Colony generally. Whether this object will be achieved it is as yet too early to say, since the full effects of the new currency have not yet been felt either in Hong Kong or in the surrounding countries.

(3) To keep Goverment interference in trade generally to a minimu. The Chinese are frightened of the new Military regime, and view its establishment with some apprehension, To date, their only experience of military administrations has been those of Japanese origin and they are none too sure that the delays, illegal exactions, ard innumerable permits which were required during the occupation, are not an inevitable appendage to military government. I am of the opinion that the Chinese will start operations in the commercial world sooner if they know that they will not be subject to official super- vision in any large measura. Control, therefore, will only be exercised

/in

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