Norwegians' figures now reveal that the increase in
imports from Hong Kong in 1968 was very small and it is very small and it is
difficult to see how it could have had any significant
effect on Norwegian production which nevertheless fell
heavily.
(ii) The case on men's and boys' sweaters is statisti-
cally stronger in that a restraint covering wool and
synthetics could have been justified on the grounds
that total production in the first half of this year
had fallen by a quarter, but it was our view that such
a concession could only have been justified if the
Norwegians had agreed to drop the restraint on women's
and girls' sweaters. The fact the restraint has been
confined to wool sweaters of course makes the presenta-
tional problem that much easier, though all the indica-
tions are that Norwegian production of wool sweaters
satisfies quite a different market than those from Hong
Kong.
2. In view of the foregoing we attach considerable
importance to the reservation in paragraph 4 of your
restraint letter.
3. We think it would be appropriate if we were to tell
the Norwegians that, having had an opportunity to
consider the outcome of the negotiations in association
with you, we were content with the settlement that had
been reached, but wished to draw attention to the
reservation in paragraph 4 of the letter of restraint,
to which we also attach importance.
(11516) Dd.392077 300m 10/68 G.W.B.Ltd. Gp.863
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