CONFIDENTI AL

HONG KONG TELEGRAM NO. 339 TO FOREIGN AND COMMONWEALTH OFFICE

-3-

6.

HOWEVER, ON AN QUOTE ARTICLE XIX-TYPE UNQUOTE CASE BASIS,

SWEDISH CASE FOR RESTRAINT ON ALL FIVE NON-COTTON GROUPS IS

NOW FAIRLY STRONG, AND THEY MADE IT CLEAR THEY COULD NOT ACCEPT

OUR FALLBACK POSITION AS IN PARAGRAPH 7 OF MY TELEGRAM 319.

7. 1968 IMPORTS FROM HONG KONG COMPRISED THE FOLLOWING PERCENTAGES

OF PRODUCTION, TOTAL IMPORTS AND CONSUMPTION IN RESPECT OF

EXISTING E/A ITEMS

WOMEN'S UNDERWEAR

BLOUSES

P

T

C

114.7, 48.9 AND 35.3,

203, 88.9 AND 63.7,

POLYESTER COTTON SHIRTS

155.5, 67.8 AND 47.6.

8. ON THE LAST DAY, EACH SIDE HAVING REITERATED ITS POSITION AND

IN JUNE WE HAVING INDICATED WILLINGNESS TO RESUME IN STOCKHOLM (NON-COTTON E/AS CONTINUING SUSPENDED IN THE INTERIM), WE EXAMINED, ON A HYPOTHETICAL BASIS, POSSIBLE RESTRAINT LEVELS. DE GEER PROPOSED THAT THEY SHOULD BE DETERMINED ON THE LINES OF ANNEX B TO THE C.T.A.

AND PROPOSED (IN THOUSAND PIECES) :-

(A) (1) WOMEN'S AND GIRLS' WOOL AND M.M.F. KNITWEAR

(EXISTING LEVEL)

(11) LESS CONTINUOUS (1967 IMPORTS)

1,675

27

1,648

(111) ADD MEN'S AND BOYS' WOOL

(IMPORTS Y/E 31/8/68)

333

/WE CLAIMED

CONFIDENTIAL

1,981

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