:
Reference
Ar. Stewart.
134)
A typical effort by your
hamesche. In
1-2/6
Swedish restrictions on imports from Hong Kong
We have to decide what instructions we should give to Hong Kong regarding the Swedish request for (a) the extension for another year of the existing restraints in n.m.f. anoreks and sweaters and (b) the imposition of new restraints dn m.m.f. underwear, blauses, polyester/cotton shirts, and on an uncertain number of additional cotton items, including two knitted items. We also need to review the case for continuing the restrainto imposed on certain cotton items last summer as a political douceur to the Swedes.
Objectives
2. The U.K. objective in the negotiations should be to :-
(a)
confine the restrictions on cotton items to the minimum consistent with (i) the criteria laid down in the L.T.A. and (ii) the U.K. interest in avoiding a deflection of trade to the U.K. market;
(b) stop Sweden imposing restrictions on knitted cotton items which are at present restricted only by the United States and where we are under strong pressure to take action against Hong Kong and Portugal;
(c) stop creeping bilateralism outside the cotton field, which would (1) encourage the Americans to restrict imports of textiles and clothing; (ii) make it impossible for the U.K. to contemplate reciprocal liberalisution of trade with Japan and (iii) compel us to impose restrictions ɑn non-cotton items to prevent deflection of trade;
(a) prevent restrictive bilateral agreements within E.F.T.A. which have the effect of deflecting trade to the U.K. and put pressure on H.K.G. to follow suit;
(e) protect the long-term interest of Hong Kong in freeing trade in textiles and clothing from quantitative restrictions;
(f)
encourage the Swedes to make use of Article XIX of the G.A..T., where necessary, and to avoid any parallel being drawn between the L.T.A. and any voluntary restraints on non-cotton items which may have to be conceded.
3. The Swedish objective is almost certainly the same as it was in April 1968: to restrict imports of all types of garments from all low-cost countries. They are almost certainly.
4.
The Hong Kong objective is more obscure. The following are among the revoŸant considerations :-
RC EIVED IN
REGISTRY No. 51
-3 JUN 1969
HICK 6/531/1
/(a)