CYPHER/CAT A
CONFIDENTIAL
ROUTINE FOREIGN AND COMMONWEALTH OFFICE
TELEGRAM NUMBER 662
TOP
TO HONG KONG
49
COPY
1 OCTOBER 1969 (HKK 6/391/1)
CONFIDENTIAL.
NEUTRAL.
ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NUMBER 662 OF 1 OCTOBER
REPEATED FOR INFORMATION TO OSLO.
YOUR TELEGRAMS 763 AND 771.
NORWEGIAN TEXTILE NEGOTIATIONS.
WE AGREE THAT THE TERMS ARE THE BEST THAT COULD BE OBTAINED IN THE CIRCUMSTANCES. THE FIGURES GIVEN HAVE BEEN EXAMINED BY THE BOARD OF TRADE, ON THE BASIS OF WHICH WE WOULD LIKE TO RECORD THE FOLLOWING COMMENTS:
(1) THE NORWEGIAN CASE ON WOMEN'S AND GIRLS' SWEATERS IS WEAK. TOTAL PRODUCTION IN THE FIRST HALF OF THIS YEAR HAS LEVELLED OFF IN SPITE OF A DROP IN EXPORTS AND SUBSTANTIAL INCREASE IN IMPORTS FROM E.F.T.A. COUNTRIES. ON THE OTHER HAND IMPORTS FROM HONG KONG HAVE INCREASED ONLY VERY MARGINALLY AND WE UNDERSTAND THAT NO EVIDENCE WAS PRODUCED BY THE NORWEGIANS TO SHOW THAT THERE WAS ANY CONNECTION BETWEEN THE SMALL DECLINE IN NORWEGIAN PRODUCTION AND THE VERY SMALL INCREASE IN IMPORTS FROM HONG KONG. WE ACCEPT THAT IMPORTS FROM HONG KONG MAY HAVE BEEN HELD DOWN BY THE QUOTAS IN THE FIRST HALF OF THIS YEAR, BUT IN THIS CONNECTION WE NOTE THAT THE NORWEGIANS' FIGURES NOW REVEAL THAT THE INCREASE IN IMPORTS FROM HONG KONG IN 1968 WAS VERY SMALL AND IT IS DIFFICULT TO SEE HOW IT COULD HAVE HAD ANY SIGNIFICANT EFFECT ON NORWEGIAN PRODUCTION WHICH
NEVERTHELESS FELL HEAVILY.
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