Ref.:

ECO.6/017

JCL/FEJ

Commercial Department,

.

British Embassy, Skarpögatan 6 - 8, S-115 27 STOCKHOLM.

3 April, 1969.

40

I think I should let you know that the Swedish rubber foot- wear industry is urging the Government to take action to help the industry by restricting imports of rubber footwear from Far East

footive countries, including Hong Kong.-

2.

According to local press reports, a representative of Helsingborgs Gummifabriks AB Tretorn (which accounts for about 80% of Sweden's total production of rubber, textile and plastic foot- wear) recently called on the Ministry of Industrial Affairs to press for action against imports from low cost countries. The represent- ative from Tretorn is said to have admitted that his firm was not being injured at present but wished to draw the attention of the Government to the fact that it could find itself in a precarious position if imports continued to grow at the high rate recorded since 1966. He claimed that Swedish imports of rubber, textile and plastic footwear had doubled since 1966 and the situation for the domestic industry could become critical if this trend continued.

3.

No breakdown of Swedish imports of such footwear is available but I understand that the bulk comes from liong Kong, Pakistan, Taiwan and Communist China.

4.

There are no indications yet that the Government is consider- ing any action in support of local manufacturers and indeed there is so far no political pressure behind Tretorn's approach. But otherwise it resembles that made by the local textile industry a couple or three years ago which ultimately led to the request from the Swedes for talks on restricting imports of textiles from Hong Kong and elsewhere. However, as Tretorn employs only 2,300 people and not more than about 6,000 people altogether are dependent on the manufacture of rubber etc., I would not expect the Swedish authorities to react quite as strongly as they have done on textiles.

C.c.to:- Hong Kong Dept., F.C.O.

David Jordan, Esq.,

Commerce & Industry Department, Government of Hong Kong, HONG KONG.

Ps. Have for

Chama

impus

J. C. Longbotham, First Secretary (Economic)

heard the the Swedes have

preening a peenme whiI knew

Jetails Cale

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restuves

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