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(ON THE MOST RECENT PRODUCTION FIGURES AVAILABLE TO US) TO HAVE SHARED IN THE GROWTH OF THE MARKET. HEAVIER WINTER SHIPMENTS FROM HONG KONG ARE PRESUMABLY THE RESULT OF SEASONAL DEMAND. THE

SUBSTITUTION ARGUMENT IS NOT CONVINCING IN THE ABSENCE OF ANY INFORMATION ON WHAT HAS HAPPENED TO SWEDISH PRODUCTION OF MALE ANORAKS SINCE YOU AGREED TO RESTRAINT. THE SWEDES ARGUED LAST SUMMER

THAT ALTHOUGH PRODUCTION OF MALE ANORAKS HAD RISEN THIS PRODUCTION WAS GOING TO STOCK IN MANUFACTURERS'S FACTORIES. WE SHOULD BE GLAD IF STOCKHOLM COULD ASK THE SWEDES TO PRODUCE UP-TO-DATE FIGURES OF IMPORTS, EXPORTS, PRODUCTION AND CONSUMPTION OF MALE CONTINVAIS SYNTHETIC ANCRAKS. ONLY IN THE LIGHT OF THIS INFORMATION COULD

WE JUDGE WHETHER THERE WAS A CASE FOR RESTRAINT. ON PRESENT EVIDENCE ALONE WE COULD BE VERY EMBARRASSED IF SUCH A DOUBTFUL CASE WERE

CONCEDED.

4. EX764.

WE AGREE WITH YOUR ASSESSMENT AND YOUR NEGOTIATING INSTRUCTIONS TO

RESIST RESTRAINT ON THIS ITEM.

5. WE SHALL BE GLAD IF STOCKHOLM COULD APPROACH THE SVEDES FOR FIGURES OF IMPORT AND EXPORT OF MENS'S AND BOYS' KNITTED OUTERWEAR IN ACRYLIC FIBRE (PARA 2 ABOVE) AND OF MALE ANORAKS (PARA 3 ABOVE) IN. TIME FOR THE MEETING ON 5 FEBRUARY, AT THE SAME TIME EMPHASISING THE CONCERN WHICH HAS BEEN AROUSED IN LONDON AT THIS LATEST REQUEST. 6. THE UK WILL BE REPRESENTED AT THE MEETING BY MISS C.H, WELCH OF INDUSTRIES I DIVISION. COLDSMITH WHO WILL BE IN GENEVA FOR THE TRADE AND DEVELOPMENT BOARD WILL PROBABLY BE AVAILABLE FOR

CONSULTATION.

7. YOU KNOW THE SORT OF PRESSURES WE ARE RESISTING FROM OUR INDUSTRY TO TAKE ACTION AGAINST INCREASED U.K. IMPORTS OF NON-COTTON GARMENTS. THE MORE PRECEDENTS FOR RESTRAINT ELSEWHERE THE MORE EXPOSED WE

SHOULD SE TO PRESSURE OF THIS SORT.

STEWART.

INTERNATIONAL TRADE DISTRIBUTION

H.K.D.

TR. POL. DEPT.

W.EUR. DEPT.

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