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14

1967.

1968

Synthetic fibres

1,779

2,026

Artificial fibres

1,026

7,443

Total

2,805

3,469

Although it was not possible to supply exact Swedish production statistics for those items by fibre, the proportion of nylon to rayon undergarments was approximately 2 to 1 in 1967 and 2 to 1 in 1968.

61.

Mr. Jordan observed that panty nylons (tights) appeared to have been excluded from the Swedish import figures but included in the production figures. Mr. Strandberg replied that Sweden considered panty nylons as stockings: a similar classification was adopted by other European manufacturers who did not consider them as undergarments. Mr. Jordan remarked that it was not possible to know to what extent the decline in the production statistics was attributable to a decrease in the production of panty nylons. Baron de Geer replied that the main thing was that the figures were comparable, and as from 1st January 1969 a separate classification had been created in the Swedish statistics for panty nylons.

62.

Mr. Jordan pointed out that until it was possible to obtain further statistics from the new classification system it would appear to be appropriate to continue with the existing Export Authorisation arrangement. He then produced copies of Export Authorisation statistics covering the period July 1968 to April 1969 which were handed to the Swedish representatives. Mr. Jordan remarked that the number of Export Authorisations, excluding Export Authorisations that had lapsed, during the first five months averaged 411 per month but during the next 5 months that figure decreased to an average of only 275. Mr. Jordan remarked that the monthly figure had decreased remarkably during the last 5 months and that indicated a downward trend and that . demand was decreasing. Sweden should accordingly be less concerned

now than during the consultations in Geneva where the possibility of a restraint level was not on the agenda. Baron de Geer replied that during December when they last requested discussions the Swedish team was still rather inexperienced. However, he considered that the case for restraint was quite justifiable even on an average monthly Export Authorisation figure of 275. That figure was still very alarming to Swedish manufacturers. Furthermore, in January and February 1969, Hong Kong supplied about 86% of total Swedish imports.

63.

Mr. Henriksson'stated that he understood that some garments made from knitted piecegoods which were separately sewn up were being exported to Sweden outside of restriction. He added that there was no difference in the Swedish classification for those items and fully fashioned knitted garments, and from the Swedish point of view such Mr. Jordan garments should be included in the restraint agreement. remarked that Hong Kong agreed to the restraint limits in the belief that such garments were not subject to restraint. Hong Kong classified those garments separately from sweaters and the like. the Hong Kong representatives had known that Sweden Ganted to include that item, they would have requested a higher restraint limit.

If

Mr. Ho mentioned that during the discussions in London, Mr. Haddon-Cave suggested a restraint level of 1,413 based on Hong Kong classification and exports, while the Swedish Delegation suggested 1,273, and a compromise figure of 1,325 was eventually reached. Baron de Geer suggested that the matter be left on one side for the time being.

164.

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