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correspondence. He looked forward to welcoming the Hong Kong delega- tion in Stockholm. Mr. Jordan agreed that if necessary it would be appropriate to meet next time in Stockholm. Baron de Geer thanked Mr. Jordan for the friendly atmosphere during the discussions, the way in which they were held, and the arrangements made for their visits and entertainment.
119.
Before replying to Baron de Geer, Mr.Jordan asked the Swedish team if they had any questions concerning the draft Memorandum of Understanding regarding the cotton items.
120.
Referring to the carryover clause, Mr. Ho stated that agreements of that nature normally had provisión for carryover of unused quota. In the Norwegian agreement there was a 10% limit. He agreed that the groups for the current year and those for the following period were not identical, but they were comparable.
In the knitwear and trousers groups all the current restraints were being extended. In the case of woven garments, some apportionment would have to be agreed between night garments and shirts. In the calculation of the new quota for shirts, a figure had been brought forward and he suggested that that was the figure for consideration. If the level for shirts was completely utilised there would be nothing to carry forward. Baron de Geer replied that he had no instructions regarding the question of carryover and the draft Memorandum would have to be considered and the points dealt with later on.
121.
Mr. Jordan then referred to paragraph 4 of the draft Memorandum and pointed out in view of the Swedish suggestion made the previous day, the period to be covered should be amended to read: "1st May 1969 to 30th June 1970".
122.
Mr. Henriksson asked for a description of dish towels. Mr, Jordan explained that dish towels were small towels used in the kitchen to dry utensils. They were usually plain woven and small in size. Dish towels were included under a different Hong Kong trade classification. In 1968, Hong Kong only exported 3.6 dozens to
Sweden.
123.
Mr. Henriksson then referred to the category for sweaters, pullovers, jumpers etc. and raised a point regarding garments known as "shells" which were made from knitted piecegoods, and were separately sewn up. Mr. Jordan stated that Hong Kong's point regarding shells was that they were considered a quite different type of garment from ordinary sweaters. They were very light and. were generally meant to be worn over normal outer garments. He did not consider that they belonged to the same category as sweaters as far as their wearing function was concerned. Mr. Henrikason thought they could be worn as jumpers. Mr. Jordan then produced various samples of shells which were inspected by the Swedish representatives. Baron de Geer remarked that they still looked like jumpers. Mr. Jordan replied that if the Swedish team intended to reopen that question then the restraint figure would have to be changed. Mr. Henriksson remarked that those items would be considered as jumpers in the Swedish statistics. Baron de Geer mentioned that if that question was not resolved Swedish importers would need an import licence to import those items from Hong Kong and it would not be granted. It was technically impossible for the Swedish Customs to differentiate between sweaters and shells. Mr. Jordan stated that Hong Kong had agreed to restrain exports according to Hong Kong classifications. Sweden would have to rely on Hong Kong to operate the control side of the agreement. Mr. Henriksson explained that
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