CONFIDENTIAL.

.51

25 SEP 1969

14K16/294/1

1969 Hong Kong-Norwegian Ferotiations

39

The following notes attempt to pick out the salient points in the Horwegian fl urUD. 100 "oichophored Le frem slo iaol nit at about 6p.m. and told © L. t they had not made much progress on the figures. The Hong Kong representatives had

1.

costested the Norwegian e se on the non-cution time and had also drawn a tention to the fact that the Lapost 11m.es for the first half of the ye ra 1960 and 1909 given 17 the second table on each 866.863 of ages and 14, respectively, did not tie up in the corresponding figures in the first table on blog $100. Sorwegians have therefore to cla:1fy the situation overnight: the intention is to hold a short weg.ion to✨g ube ntinue on

eunesu p

*

Liefief. Blouses

Lie flures are un page C. The fi uzes for 1,60 1902 confirm the view that we took last year, that there was no evidence that imports from Long long had caused or threatened serious injury to the godoavic industry. roduction rose in each of the throe years 1966-68 and laporte from ong Kong, after rising rapidly Letween 1960 and 1967, fell almost as rapidly. Indeed, they fell

#

than impo ta from other sources. There has toch Bunu decline in groupeti: in the first half of this year, compared with lost, but the celine le f 8ller than the decline in importe Conerly and, in particular, importa from Hong Fong. The last vc filen by no less than 40 per cent, continuing the steep dec.in which took place between 1967 and 1968.

3. The osivion is not fand mentally altered if we include cotton blounes. The 11 pros un page 6 show that there has been a C por cunt increase in Borvegin uports of ection blouses fr Bong Kong in the first muf this year, empared wit! the 000.030nu .rg 1od last year, but this increase in small in proportion so the poline which took ¡4.00 Letween 1967 und 1966.

4. If the option and man-cude fibre fi, urea voy to bo angreg.ted, the Norwegiana could show a very small decline in production between 1907 and 1906: and a rather bi, ger dec ine in the firat iií na thâe year, but imports from Hong Kong would show a veży much big er dec.ind in both periods in. it could not be argued that imports from liong Kong had anything to do with the probleme of the bornegim. industry. The Jame goua for importa cunerally.

5. The conclusion must be shut the maintenance of the restrictions on non-made fibre btouses would be inconsistent with the principles of Artic.e X1X of the GATE. And it is now quite ol r, if it was not elo i Luwuro, timt une maintenance of the restrictione an cut.on would be luconsistent with the requirezento

* I see that in Article (a) of the CIA, which requires the importing

the item is actually

countries to relax and eliminate restrictions as soon as poosille.

under EA's, &. which makes the m... restraint

even less

defensible.

Jackets, Anorake, etc. 7/3.

The 21 ureo on page 16 show that production increased by 17 per a at in the first half of this year, after e very o all decline in ench of the years 1067/66. Importe lave si30 inorcased, but there lo no evidenco that these importɛ have cansed or threatened serious injury to the domcntia i dustry. More Fone is the majer supplier, but weden has an important trade and whilu figures showin, the trond for our countries fve not leon

rouuoed, it should be noted that imports from coun ziep other than dong 1. ng rose by 25,000 in the first bii of this year. It is

/quite clear

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