20. The Swedish 'restraints on importa of cotton shirts from Hong Kong were not justified under the L.T.A. and should now be dropped.
Knitted continuous m.n.f. undergarments
21.
The
This is a catch-all heading which mac rayon as well as synthetics. Swedes did not know last summer what the items really were and they dont seem any wiser now. There is no evidence that production and imports were exactly the same items: and Hong Kong export figures only account for half of Swedish imports. How can they say they are being hurt when they don't know where the pain is?! And what about the even bigger increase in imports from other countries? We would want to know a great deal more before agreeing to an item like this.
Woven synthetic blouses
22.
Swedish production fell from 520,000 in 1965 to 297,000 in 1967, in spite of an increase in consumption of 44,000 because imports increased by 155,000 and exports fell by 112,000. However, last year we argued successfully that consumption and imports had declined between 1966 and 1967. This year there has been an increase of 160,000 in imports, nearly all from Hong Kong, but production has only fallen marginally to 264,000. There has been a further increase in imports in the first two months of the year.
injury
23. There doesn't seem to be an enquiry case on the 1968 figures. U.K. imports from Hong Kong are increasing and it is in our interest to keep the Swedish market open for Hong Kong.
The Swedish case see below - is not strengthened
including) by inner cotton blouses.
Cotton
24. The case against Hong Kong on trousers is very thin. Swedish production fell by 20 per cent in 1968, but was nevertheless well up in 1965. Hong Kong was by far the largest supplier, but imports from Portugal shot in 1968 and the imposition of restraints on Hong Kong would simply benefit Portugal, unless she, in turn, was restricted. Finland and Italy have also improved their position significantly. Moreover, imports in the first two months of this year fell by nearly two-thirds and imports from Hong Kong fell by 75 per cent. Imports from Portugal continued to rise. Swedish exports have risen four fold in four years and are equal to one-third of importa.
25. Imports of cotton blouses rose 20 per cent in 1968, but were down in 1965. Production was marginally up in 1967, but well down in 1965. Hong Hong's share of imports increased and she had over half the trade. Switzerland and the U.K. did better. Portugal did a lot worse. However, imports from Hong Kong fell by' half in the first two months of this year and total imports by a third. There is no case for restraint.
Retted
26. Imports of Bestisir cotton underwear rose by 20 per cent in 1968, but was still 20 per cent less than in 1965. Production fell by an eighth in 1967 and nearly 20 per cent in 1965. Consumption fell by 20 per cent after 1965. Imports from Portugal, which had accounted for half the total in 1965, fell to 30 per cent in 1967 and only 20 per cent in 1968. At first no one benefitted from this reduction, but in 1968 imports doubled from the U.K. doubled and trebled from Hong Kong. Other ".F.T.A. improved very considerably dn 1965 trade. Hong Kong's share of consumption was only 8 per cent in 1968. Imports rose by another 20 per cent in the first two months of this year. The increase over the correspond ing period of last year was 109,000 in the case of Hong Kong, 61,000 in the case of the U.K. and 128,000 in the case of East Germany. Portugal's trade fell by 86,000. H.M.G. would be very embarrassed if restrictions were imposed on Hong Kong and, subsequently, Portugal.' We are under very strong pressure to take action ourselves. U.K. imports from Hong Kong and Portugal in 1968 totalled g million and
million respectively. It seems odd than Swedish imports from Portugal should have fallen even though U.X. imports from Hong Kong and Portugal have increased. There is at least a suspicion that some sort of an agreement was
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/nade