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15.
Woven
Mr. Jordan stated that in relation to overall shirt production for 1965 1967, the decline was entirely in knit shirts. Exports of Hong Kong cotton shirts were under restraint, while that of synthetic knit shirts were negligible. Swedish production of woven shirts in 1967 had increased by 20% over 1965. Woven shirt production was mainly in cotton whilst the item under request shirts of discontinuous synthetic fibres was only 10% of the woven shirt production. Production in that particular sector had been steady 1965 - 1967, but increased appreciably during the first nine months of 1968. Admittedly imports had also increased, but it appeared that demand was greater than the domestic industry could meet.
S
16.
Mr. Bernunger stated that in cotton woven shirts, produc- tion dropped from 1,994 in the first nine months of 1967 to 1,889 in the same period of 1968. Mr. Ho pointed out that Hong Kong's exports of cotton woven shirts were already under restraint. Mr. Bernunger stressed that there was, in his opinion, a tendency for synthetics to replace cotton. Mr. Jordan replied that such a situation might be developing, but there was as yet no evidence of that from the statistics available. Sweden produced nearly as many dress shirts as she imported. In January/September 1968 a total of 5,000 were imported of which only 566 were of synthetic discontinuous fibres. Mr. Bernunger said that the loss in woven cotton production had not been made up by gains in synthetic
discontinuous.
17.
Mr. Jordan took up Mr. Bernunger's suggestion that in the decline in knit shirts, the fall in production was due to changes of taste and fashion; he pointed out that with the decline in produc- tion (5,019 to 2,425) knit imports had in fact doubled (933 to 1,829). Hong Kong's cotton knit shirts were already under restraint and greatly increased imports of synthetic knit from 479 to 1,360 in 1967 were not from Hong Kong.
18.
Mr. Bernunger gave the following supply figures
1967
1968
Knit
2,287
1,788
Cotton woven
4,889
4,853
Synthetic woven
197
301
Baron de Geer suggested that these figures would indicate Article 6(b) substitution.
19.
Mr. Jordan replied that Hong Kong was always prepared to look at the figures. The E/A system provided an early warning of developments. The Swedish Government was entitled to ask Hong Kong to suspend E/As if they were worried, but increased imports from Hong Kong had not created market disruption when considered in the light of the available statistics. He added that the arguments put forward by the Swedish side would mean the prevention of exporting countries from sharing in the growth of the Swedish shirt market. That was not provided for under the C.T.A. or G.A.T.T.
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