CONFIDENTIAL
-2-
1968. THE CANADIANS WILL ARGUE THAT THE 35% INCREASE IN IMPORTS IN 1968 OVER 1967 IS AFFECTING CANADIAN PRODUCTION IN 1969
AND THAT IN 1968 IMPORTS ALREADY ACCOUNTED FOR ABOUT 50% OF
PRODUCTION SEMICOLON AND THAT FURTHERMORE THE DAMAGE IS BEING FELT PARTICULARLY BY SMALL FACTORIES IN QUEBEC PROVINCE WHERE
POLITICAL CONSIDERATIONS ARE PARTICULARLY STRONG.
(C) THE CANADIANS HAVE ASKED ALL COUNTRIES EXPORTING POLYESTER/ POLYNOSIC SHIRTS TO INCLUDE THOSE WITHIN THE POLYESTER/ COTTON LIMITS. KOREA AND MALAYSIA HAVE BEEN DEALT WITH BY THE SURCHARGE AND WE PRESUME THAT THE TEAM COMING TO HONG KONG
WILL NEGOTIATE WITH THE OTHER COUNTRIES CONCERNED DURING THEIR
FAR EAST TOUR.
(D) WE ONLY HAVE CANADIAN PRODUCTION OF KNITTED SHIRTS OF COTTON AND M M F FOR 1966 AND 1967 AS FOLLOWS
1966
1967
117,000 DOZEN
134,000 DOZEN
ON THE OTHER HAND CANADIAN IMPORTS OF KNITTED SHIRTS OF ALL FIBRES HAVE SHOWN THE FOLLOWING TREND
| 1966
427,000 DOZEN
1967
1968
645,000 DOZEN
891,030 DOZEN
EVEN IN 1967 THEREFORE IMPORTS WERE ALMOST FIVE TIMES PRODUCTION AND IMPORTS DOUBLED BETWEEN 1966 AND 1968. I DOUBT WHETHER
WE CAN SHOW ANYTHING MUCH FROM THESE FIGURES OTHER THAN THAT THE MARKET FOR KNITTED SHIRTS IS EXPANDING RAPIDLY AND THAT IMPORTS
ARE TAKING ALMOST ALL THE INCREASE."
2.
WE WILL PROBE THE CANADIANS FURTHER ON THESE POINTS.
CONFIDENTIAL
/DURING
*F