RECEIVES I

ARCHIVES No.31

211969

HKK6/531/1

Reference

R+PA

by

Hong Kon/Swedish negotiations

5th to 7th February. 1969

Mr. Jordan is reporting by telegram on the agreement that was reached" ad referendum at the conclusion of these talks. The upshot was that we were forced to concede, when more detailed and up-to-date statistics were presented to us, that there was a case for restraint on female anoraks and men's knitwear; but the Swedes were persuaded (not without some difficulty) to withdraw their approach on shirts. Unwelcome though the two additional restraints will be to Industries 1, it has to be admitted that the figures in both cases are comparable to those for W.German imports of knitwear from Hong nong.

The first day of the talks was spent as a statistical sub-committee, with a singularly inept performance from the two spokesmen for the Swedish industry- Mr. Strandberg on knitwear and Fr. Bernunger on anoraks and shirts. Unfortunately before the negotiations proper could begin Baron de Geer fell ill; at lunch-time on the 6th Mr. Larsson (Ministry of Commerce) developed a very high temperature; so responsibility for the negotiations fell on the shoulders of the somewhat inexperienced Mr. Kumiin (Ministry of Foreign Affairs).

The Hong Kongers are preparing a full record of the meetings, but the following are the key points to energe in the three items under discussion.

anoraks

It seems clear that, whatever the Hong Kongers may have said last summer, men's and women's anoraks are interchangeable. The type they are exporting is for the most part in plain dark fabric; the problem of whether the neck-fastening should button or right or left has been overcome by having a tab across the neck fastened by a button on both sides.

de conceded restraint on men's anoraks with great reluctance last year because at that time Swedish production still appeared to be rising (though the producers alleged that they were unable to sell most of these goods, and their stocks were therefore mounting). The figures now produced by the Swedes show that production of men's anonks did indeed fall in the first 9 months of 1968; production of women's anoraks rose by a roughly equivalent amount (about 60,000 pieces) but the rise occurred in the first half of the year the third quarter of 1968 showed a decline of 4,000 pieces on the same period of 1967. Production levels were maintained overall only as a result of the rise in exports.

I. Anoraks, men's, synthetic

1965

1966

1967

10 mths.67 10 mths.u8

Production

274

430

599

483*

422*

Exports

22

32

77

57

Imports total

71

150

428

372

77 504

of which, liong Kong

40

50

182

159

274

II. Anoraks, women's continuous synthetic

Production

1750

2366

2756

195*

257"

Exports

7

19

28

13

38

Imports total

124

115

239

183

284

of which, long Kong

53

65

162

116

192

I and II combined

Production

4490

6666

8748

678*

679*

Exports

29

51

105

70

115

Imports total

-

195

265

667

555

768

of which, Hong kong

93

115

344

275

466

6

includes women's discontinuous synthetic anoraks 9 months only.

The restraint level for men's anoraks was fixed at 180,000 pieces for the

year

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