CONFIDENTIAL
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AT GENEVA IN FEBRUARY INDICATE RISE IN PRODUCTION FOR MEN'S AND
BOYS' ACRYLIC, NET RESULT FOR ITEMS UNDER RESTRAINT OBVIOUSLY WORSE
THAN INDICATED ABOVE. MEN'S AND BOYS' ACRYLIC LICENSING FIGURE
FOR 1ST QUARTER OF 1969 WAS 123 INDICATING CONTINUED STRONG GROWTH.
(11) ANORAKS TABLE 3 INCLUDES WOMEN'S AND GIRLS' SYNTHETIC
DISCONTINUOUS NOT UNDER RESTRAINT, ALSO SOME DISCREPANCY BETWEEN
PRESENT FIGURES AND THOSE GIVEN IN GENEVA. PRESENT AGGREGATE
PRODUCTION SHOWS. 25 INCREASE IN 1968, BUT THIS IS FOR PERIOD BEFORE
MASSIVE INFLOW OF IMPORTS IN 4TH QUARTER AND EARLY 1969. ALTHOUGH
NO LARGE EXPORTS HAVE COME TO NOTICE SEVERAL EXPORTERS HAVE RECENTLY
SOUGHT CONFIRMATION THAT WOMEN'S AND GIRLS' DISCONTINUOUS ARE NOT
UNDER RESTRAINT, INDICATING LIKELY DEVELOPMENTS,
(111) UNDERGARMENTS TABLE 1 ATTEMPTS TO ISOLATE TIGHTS FROM
OTHER UNDERGARMENTS, BUT THE RESULTS ARE ONLY APPROXIMATIONS AND
INADEQUATE FOR ESTABLISHMENT OF SWEDISH CASE. ON THIS BASIS I SHALL
OFFER CONTINUATION OF E/A. FURTHERMORE OUR LICENSING RECORDS FOR 9
MONTHS TO MARCH 1969 SHOW 2,882 POSSIBLY INDICATING A LEVELLING OFF
OF EXPORTS: ONLY 110 TIGHTS IN THIS FIGURE.
(1V) BLOUSES TABLE 4 SHOWS FURTHER 20% DECLINE IN PRODUCTION IN
9 MONTHS OF 1969, COUPLED WITH LARGER PERCENTAGE INCREASES OF
IMPORTS, BOTH TOTAL AND FROM HONG KONG. HONG KONG HAS 90% OF IMPORTS.
LICENCES FOR 9 MONTHS TO MARCH 1969 NOW TOTAL 535 WHICH IS EQUAL TO
IMPORTS INTO SWEDEN IN 1968, INDICATING FURTHER PENETRATION.
(V) POLYESTER COTTON SHIRTS - TABLE 5P SHOWS PRODUCTION, TOTAL
IMPORTS AND IMPORTS FROM HONG KONC ALL INCREASING AND POSITION IS
UNCHANGED FROM GENEVA, BUT I SHOULD BE PREPARED TO CONTINUE E/AS.
4. HAVING REGARD TO (IV) ABOVE AND THE SWEDES REMARKS IN GENEVA
CONCERNING THE OTHER TWO E/AS, IT STRIKES ME THAT DE GEER'S STATEMENT
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CONFIDENTIAL
TO GOLDSMITH