.6.

out that the U.S. had already stated that Article XIX was "of no use to them"

since they would have to go to Congress for authority to act first.

Mr. Jordan said that at the recent talks in Hong Kong with the Americans,

Mr. Stans had made it clear that he wanted comprehensive restraint on non-cotton

items (e.g. under an agreement similar to the LTA) and that he was not

interested in the present limited restraints operated by Hong Kong.

The meeting then concluded. It was decided that the group under

Mr. Kemmis' chairmanship would meet at once to discuss to what degree

"Article XIX-type" cases existed on the items on which the Swedes were seeking

restraints by Hong Kong. A further meeting would take place at 10.15 a.m. the

following day to discuss the findings of the group.

June 13- 10.15 a.m.

Mr. Keumis reported to Mr. Hughes on the findings of the Group held the previous

afternoon, as follows1-

There had been a good deal of discussion on the policy issues discussed at

the previous meeting, e.g. should restraints be conceded at all, or, if they

were conceded, should it be only in accordance with Article XIX. No agreement

was reached on these matters and the group had therefore turned to consideration

of each item in turn, on the basis of the Swedish and Hong Kong statistics which

had been sent to London at the end of April.

1.

Items on which restraints already existed.

a) Anoraks: It was felt that the restraint conceded on men's

synthetic anoraks in 1968 had been weak. It had been extended

to some types of women's anoraks in February last and the Swedes

now wanted it extended to all women's anoraks. Production had

fallen in 1967/68 and imports over the same period had risen

sharply. The Swedes therefore had a better case than they had

had last year, and it also seemed that a "threat of injury" situation

Subject to a decision on the points of policy

might be developing.

/already

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