0003230
G.F. 323
CONFIDENTIAL
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Mr. Jordan replied that Hong Kong could not agree to restrict anything that was not causing market disruption. Mr. Henriksson stated that there would have to be a Customs definition to cover the exceptions since the Swedish classification did not include a special item for petticoats: they would have to demand Hong Kong export licences for all items in order to decide if an item was under restraint. Mr. Jordan stated that if particular items could not be excluded from a category it would never be possible to reach any agreement. Whatever statistical system was adopted by a country it was never detailed enough to cover all items. What the Swedish delegates were saying was that they should not have ex-items in statistical groups and therefore all items should be included. Mr. Ho stated that Sweden should exclude tights, slips or petticoats and vests. Baron de Geer asked what was a vest and Mr. Jordan remarked that it was an under-shirt. Mr. Ho added that during the past nine months, from 1st July 1968 to 31st March 1969, only 9 of such items of slips and vests had been exported from Hong Kong to Sweden. Baron de: Geer remarked that Hong Kong's proposals would be considered and that if Sweden accepted that basis for the definition of items in that category, the restraint limit should be reduced to 3,458.
2
Non-Cotton Garments Table 2
(Knitted sweaters etc. of wool and discontinuous synthetic fibres)
110.
Baron de Geer stated that there was a serious situation in the knitwear industry-involving a decrease in production and a large increase in imports: He said that for sweaters of wool for men, the limit should be 333 being imports for the year ending 31/8/68, using the C.T.A. roll-back formula dating from their December request which led to the Geneva consultations. Mr. Jordan suggested that the Export Authorisation figures were more appropriate, but Baron de Geer disagreed. Mr. Jordan agreed to leave this matter on one side for the time being on the understanding that the figure of 333 represented the minimum offer.
111.
Baron de Geer said that sweaters of wool, of discontinuous synthetic fibres, and of continuous synthetic fibres, for women and girls were under restraint. Sweden would give up the continuous synthetic fibre item and imports for 1967 at 27 should be excluded from the base figure of 1,675 for women's and girls' items. The combined level, including 333 for the men's and boys' item would- then bë 1,981. Mr. Ho mentioned that the figure of 1,675 was not based on import statistics but was a negotiated figure which was a compromise...between Hong Kong export and Swedish import figures, and Mr. Jordan added that one could not therefore deduct the unnegotiated figure of 27 from the negotiated figure. Baron de Geer remarked that he was not able to increase the proposed figure of 1,981 as that was the figure mentioned in his instructions but he noted the points made by the Hong Kong team.
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112.
Mr. Jordan said he could not understand how Baron de Geer arrived at his figures, and he had two comments thereon:
(a)
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no allowance had been made for any growth of exports of women's and girls' sweaters made of wool and .discontinuous synthetic fibres which had been under restraint since 1st July 1968;**
(b) the figure for men's and boys' sweators of wool
was even lower than imports from Hong Kong in 1967 which amounted to 356.
CONFIDENTIAL
/As