0003230
t
G.F. 323
*
CONFIDENTIAL
34.
Nightwear for men and boys
1 ton 2,000 pyjamas
Nightwear for women, girls and infants
1 ton 4,000 pyjamas
Bed linen of non-terry cloth
1 ton 7,035 sq. yds.
Household linen of terry cloth
1 ton = 3,417 sq. yds.
Mr. Haddon-Cave indicated that he would have to examine the suggested conversion factors in relation to Hong Kong equivalents. He noted that for bed linen of non-terry cloth, the United Kingdom used a factor of 1 ton to 9,000 sq. yds. He asked Mr. Verhagen for further information on the basis for their conversion factors. Mr. Verhagen replied that the conversion factors had been given to him by the Dutch textile industry but if there were significant differences between the conversion factors suggested and those used by Hong Kong, he was prepared to discuss the issue with a view to coming to an agreed solution. Mr. Haddon-Cave thought little difficulty would arise if the differences were small and suggested that the best solution might be to use the factors accepted by the G.A.T.T.
35.
On the general question of the need for restraint, Mr. Haddon-Cave said that Hong Kong had studied the Benelux aide-nemoire with care to try to give some quantitative meaning to the Benelux representations. He could accept on the basis of available Hong Kong figures that there had been an upward trend in some of the items between 1964 and 1966. He asked for further information to support the contention that Benelux imports from Hong Kong were causing disruption damaging to the Benelux textile industry. He pointed out that Hong Kong appeared not to be the cheapest supplier of some of the items.
36.
Mr. Verhagen said that the Benelux textile industry was facing many difficulties and that low price imports was only one of them. At the end of 1966 there was a total of 150 factories in the cotton, rayon and linen sector. They employed a total of about 38,000 workers. Nine factories involving 2,900 workers had now totally or partially closed. In addition sixty-four factories involving 12,200 workers had applied for short time work. For this reason, the Benelux countries found it necessary to take drastic action. Imports from low price countries, including Eastern Europe, Japan and Mainland China, were already under strict quantitative and price control. A system of autonomous liberalisation had been used and market disruption could be prevented by either unilaterally imposed quotas or refusal to issue import licences if prices were too low. He could not say precisely how the volume or prices of imports from Hong Kong affected the domestic market as the difficulties were being caused by a combination of factors.
37.
Mr. Haddon-Cave was alarmed that so much emphasis was being placed on the price factor. He accepted the point that other low cost suppliers were subjected to quantitative control, or price. surveillance and Hong Kong was not at the moment so restricted. Although imports from Hong Kong dominated low cost imports into the Benelux market, they did not appear to dominate the Benelux market in terms of total consumption.
138.
CONFIDENTIAL