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However,
he agreed that production had dropped through the years. production of woven shirts was rising. If there was any recession, it was in knitted continuous synthetic fibre dress shirts a line where Hong Kong's supply was negligible.
He could not agree to a case for restriction.
94.
Baron de Geer contended that since Sweden had restricted other major suppliers it was not unreasonable that Hong Kong's exports of discontinuous synthetic fibre woven dress shirts should also be restricted. Otherwise, imports would continue to grow. Further,
as the Swedish industry was losing ground in knitted shirts, the restriction of imports of Hong Kong polyester/cotton shirts might enable Swedish industry to recover some of their lost ground by capturing part of the market in polyester/cotton shirts. The resumption of export authorisation after the Geneva consultations. and the restriction of South Korean imports w.e.f. 1/3/69 at a level of 210 for 12 months, prompted Swedish importers to turn to Hong Kong again and was frustrating the Swedish aim. Mr. Jordan did not believe Hong Kong exports were ruining the Swedish industry. The 3-monthly moving averages of export authorisations approved-since July 1968 to March 1969 showed that imports were not that alarming. Moreover, he felt that the re-institution of the export authorisation system for dress shirts would be sufficient warning for prudent importers to turn to other sources of supply.
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/Eighth Session.....
CONFIDENTIAL
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