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CYPHER CAT A

ROUTINE HONG KONG

TELEGRAM NUMBER 763

CONFIDENTIAL

/NEUTRAL/

CONFIDENTIAL

TO FOREIGN AND COMMONWEALTH OFFICE

26 SEPT 1969 Ad00

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ADDRESSED F C O TELNO 763 OF 26 SEPTEMBER R F I OSLO.

RIC

YOUR TELEGRAM 642: NORWEGIAN TEXTILE NEGOTIATIONS.

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YOUR PARA. 2. (A) WHILE I AGREE THAT IMPORTS OF WOMEN'S AND GIRLS' ACRYLIC KNITWEAR FROM EFTA ARE STILL INCREASING, SUCH IMPORTS CF WOOL ARE DECLINING. WE CANNOT SAY FROM NORWEGIAN

TABLES THAT PRODUCTION HAS LEVELLED OFF SINCE TABLE 8 PRODUCTION

FIGURES ARE FOR ALL FIBRESS OTHER THAN WOOL. NORWEGIAN CLAIM, HOWEVER (SEE PARA.5 OF OSLO TELEGRAM 249), THAT WOMEN'S AND

GIRLS' ACRYLIC PRODUCTION HAS DECLINED.

(B) AGAIN NORWEGIAN TABLES DO NOT SHOW STRONGER CASE ON MEN'S

AND BOYS' KNITWEAR BECAUSE TABLE 14 PRODUCTION FIGURES ARE FOR

ALL FIBRES OTHER THAN WOOL BUT, ACCORDING TO OSLO TELEGRAM 249 PARA. 5, MEN'S AND BOYS' ACRYLIC PRODUCTION HAS INCREASED.

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2.

POSITION ON ALL KNITWEAR ITEMS IS COMPLICATED BY

THE FACT THAT EXISTING WOMEN'S AND GIRLS' QUOTA IS UNDER-UTILISED, INDICATING THAT EXPORTERS /IMPORTERS MAY, IN SECTORS WHERE WOMEN'S AND GIRLS' AND MEN'S AND BOYS' ARE PRACTICALLY INDISTINGUISHABLE,

BE DELIBERATELY BUILDING UP PERFORMANCE IN UNRESTRAINED CATEGORY.

IN THESE CIRCUMSTANCES I THINK DELEGATION HAS DONE WELL TO DRIVE NORWEGIAN GFF MEN'S AND BOYS' ACRYLIC WHERE BUILD-UP HAS BEEN MOST REMARKABLE 68/69.

3. I INSTRUCTED MY DELEGATION TO EXAMINE STATISTICS WITH NORWEGIANS

AND TO CONCEDE AD REFERENDUM ONLY WHERE A PRESENTABLE CASE OF INJURY (OR IN CASE OF EXISTING RESTRAINTS, THREAT OF RENEWED/INJURY

CONFIDENTIAL

LAST

REF

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