0003230
G.F. 323
CONFIDENTIAL
2
itself in the first quarter of 1963 and this trend had continued. The large increase in imports only occurred in the last few months of 1968. It was difficult in the circumstances to attribute decline in production to imports when total imports for the first nine months of 1968 were running at a lower level than in 1967. He also noted that exports, though small, were increasing, and suggested that production had been cut back early in 1968 and imports were increased some months later when buyers were unable to get this item except by importing. He suggested that Hong Kong sweaters were competing with those from Italy, whilst the British, Danish and Swedish sweaters were double the price of the Hong Kong sweater, and were obviously catering to different sectors of the market. Referring to the statistics newly tabled, he observed that total imports had increased by 200, but Hong Kong had only increased its share at the expense of South Korea and Israel.
5.
Baron de Geer claimed that retailers/wholesalers orders were not being placed with Swedish factories, but with import agents and there was a time lag between overseas orders and deliveries. Mr. Strandberg added that Swedish exports were mainly garments of coarse heavy wool. Luxury production was confined to a small sector. Their staple production had mainly been damaged by low cost imports, though he admitted that there had been some switching to other fibres including acrylic.
6.
Mr. Strandberg proceeded to read out other statistics which the Swedish side were unable to reconcile. It was then decided to leave this item over while Messrs. Henriksson and Strandberg attempted to sort out their figures.
ex 841.751 - Anorake and similar jackets
7.
Mr. Bernunger stated that the production of jackets and anoraks was one problem covering all materials and for both male and female wear. There was no difference in these garments for the two sexes and differentiation by colour was no longer meaningful in the present age, although in the arrangements with Hong Kong only garments for men and boys of synthetic fibres were restrained. After giving figures of production for both sexes and of all fibres, he stressed that the production of synthetic fibre anoraks for women and girls had declined from 115 for the third quarter of 1967 to 111 for the same period of 1968. As against these figures there was a sharp increase in imports from Hong Kong of women's and girls' anoraks.
8.
Mr. Jordan observed that the trends in this trade in 1967 were similar to those in 1968. He added that the Swedish case appeared to be based only on the decline of third quarter production of women's and girls' anoraks in 1968. It was difficult to believe... that the decline of 4 was any indication of a disaster to come: the loss of one or two working days could account for this difference. He suggested that the expansion of this market was due to a change in fashion and taste among teenagers who were each buying more than one of these anoraks: these relatively low-priced garments had generated their own demand. Restrictions would damage exporters without benefiting the home industry which was not in the same market.
9.
The meeting broke off for lunch at 1.00 p.m.
Second Session
CONFIDENTIAL
1