CONFIDENTIAL
HONG KONG TELNO 81 TO FCO
-3-
LAPSED MAY REASSURE THE SWEDES. IF NOT, ALTHOUGH THE FIGURES DO NOT SUPPORT A 'SERIOUS INJURY' CASE, IT MAY BE DIFFICULT TO RETRIEVE THE GROUND LOST LAST SUMMER WHEN WE CONCEDED RESTRAINT ON THE MALE ITEM : THE PRESENT REQUEST CAN BE REPRESENTED AS BEING MERELY AN
EXTENSION OF WHAT WE THEN CONCEDED, THERE BEING AN UNDOUBTED CLASSIFICATION/SUBSTITUTION PROBLEM.
EX 764.
WOVEN SHIRT PRODUCTION IS GOING UP, BUT IMPORTS ARE RISING FASTER.
IT APPEARS THAT SWEDISH INDUSTRY CANNOT COPE WITH DEMAND. IN ANY
CASE WOVEN COTTON SHIRT EXPORTS FROM HONG KONG ARE ALREADY UNDER RESTRAINT. FURTHERMORE, IN DISCONTINUOUS SYNTHETIC SHIRTS, ALTHOUGH IMPORTS FROM HONG KONG ARE INCREASING, OUR PERCENTAGE SHARE OF THE
MARKET HAS GONE DOWN DUE TO LARGE INCREASES FROM SOUTH KOREA. THERE IS CLEARLY NO DAMAGE TO THIS SECTOR OF THE DOMESTIC INDUSTRY.
3. NEGOTIATING INSTRUCTIONS,
THE FOLLOWING FALL-BACK POSITIONS ARE SUGGESTED IN EACH CASE :
452.
(A) SINCE E/A SCHEME COUPLED WITH RESTRAINT ON WOMENS' AND GIRLS' ITEMS HAVE LED TO SOME SPECULATION, BUT SEASON FOR HEAVY SHIPMENTS IS NEARLY OVER, SEEK TO RELIBERALISE TRADE WITHOUT E/AS, HONG KONG UNDERTAKING TO GIVE TWICE-MONTHLY FIGURES OF OPEN EXPORT LICENCES ISSUED (AS WAS DONE WITH TWO ITEMS TO NORWAY).
(B) ADD OFFER TO INCLUDE THIS ITEM IF THERE ARE TO BE FRESH
CONSULTATIONS ON POSSIBLE EXTENSION OF EXISTING RESTRAINTS.
(C) CONCEDE RESTRAINT AT A LEVEL ALLOWING FOR SOME FURTHER EXPORTS IN YEAR ENDING 30/6/69
EX 751.
(A) AS (4) FOR 462.
(B) CONCEDE AND TRY TO SECURE THE BEST LEVEL FOR FURTHER EXPORTS IN YEAR ENDING 30/6/69.
CONFIDENTIAL
/EX 764.