0003230
G.F. 323
CONFIDENTIAL
- 7 -
domestic side he thought that the figures for knitted cotton sweaters, etc., for men's and boys' wear should be added to those for continuous synthetic to get a total picture which showed production to be going up:
Production
1965
1966
1967
1968
1,478
1,178
1.303
1,672
28.
Baron de Geer pointed out that any combined figures should include women': s and girls' wear as well. By bringing all those tables together there was an overall decrease in production of 232 from 1967 to 1968. Mr. Jordan then enquired if Non-Cotton Garments Table (2)(ii) covered more or less the same garments as on the men's and boys' side, which included the 'roll-neck' type shirts. Mr. Strandberg replied that they were the usual type that women used to wear, but substitution between men's and women's garments of that type was unlikely. He added that although the end products might be different, they were being made in the same factories.
29.
Mr. Jordan then said his principal argument was the small share of the market taken by Hong Kong. Had Hong Kong been restricted in 1967, he doubted very much if it would have any effect on the 1968 increase in total imports. Looking at Tables 2(a) and 2(b) separately, Hong Kong's main increase was in the men's and boys' sector and that was at the expense of the other suppliers. The figures for the first two months of 1969 showed imports from Hong Kong declining but Portugal had a big increase 112 in the first two months in 1969 compared with 173 for the whole of 1968. On the women's and girls' side, Hong Kong's performance was negligible.
30.
Baron de Geer emphasised that Hong Kong was the second biggest supplier, and he thought his Government would have to approach the Portuguese Government if imports from that source continued at its present level. Mr. Jordan said that this was a case where Sweden should tackle Portugal first of all. Baron de Geer then spoke of the difficulty of seeking consultation on two months' figures alone. He did however have a good case against Hong Kong. Mr. Jordan said he failed to see the case as there was no large increase in total imports. Demand was increasing however and it should not be surprising if imports responded by going up. Restraining Hong Kong would not do the Swedish industry any good. And when Baron de Geer added that only Hong Kong made any headway in 1968, Mr. Jordan's rejoinder was that the fact that Hong Kong's prices were higher than those of Portugal coupled with the fact that imports from Hong Kong were down in January and February 1969 indicated that Hong Kong was already losing out to Portugal.
Anoraks and similar jackets (of cotton)
31.
The Sub-Committee then moved on to discuss Cotton Garments Table 3. Mr. Bernunger said that while the Swedish production generally increased, that was not the case for the clothing industry. 2,400 workers had so far been laid off. Negotiation was currently pending with labour which was demanding a 20% pay increase. Moreover the Swedish industry was situated in the West of Sweden in small villages where alternative employment was hard to come by. Those factors made the industry all the more sensitive to imports. Sweden had no choice but to ask for restraint.
32:
As. anoraks and jackets of both cotton and synthetic fibres were made in the same factories, the combined figures were:
CONFIDENTIAL
/1967
.....