-2-

D

3. UNEMPLOYMENT CONTINUES TO FALL. IN NOVEMBER 1968 THERE WERE 786 UNEMPLOYED TEXTILE WORKERS REGISTERED WITH THE EXCHANGES OUT OF A TOTAL OF SOME 57.000 WORKERS IN THE INDUSTRY AS A WHOLE.

IN THE MEANTIME ONE IN MID-MARCH THIS YEAR THERE WERE 746. OF SWEDEN'S LARGEST CLOTHING MANUFACTURERS HAS ANNOUNCE THAT OWING TO THE SHORTAGE OF SKILLED LABOUR IT HAS DECIDED TO SET

A CONTACT IN THE TRADE TELLS UP ITS NEW FACTORY IN FINLAND. US THAT OTHER SWEDISH TEXTILE MANUFACTURERS ARE ALSO PLANNING

TO MOVE THEIR PRODUCTION ABROAD.

1

AS A MEMBER OF THE GOVERNMENT'S

TEXTILE INDUSTRY COMMISSION OF INQUIRY HE VISITED THE BORAAS TEXTILE DISTRICT LAST WEEK WHERE HE WAS TOLD THAT THE

HE SAID THAT THE COMMISSION SHORTAGE OF LABOUR WAS BECOMING ACUTE. WAS UNLIKELY TO PRODUCE ITS REPORT UNTIL THE BEGINNING OF

1970.

4.

AS THE NEXT ELECTION IS NOT UNTIL SEPTEMBER 1970, AND IN VIEW OF THE IMPROVEMENT IN THE ECONOMY AS A WHOLE AND OF THE

SWEDISH ARGUMENTS ON THESE SCORES IN

DECLINE IN UNEMPLOYMENT,

FAVOUR OF CON INUING RESTRAINT ON IMPORTS NO LONGER APPEAR SO CONVINCING, ALTHOUGH THE GOVERNMENT IS STILL UNDER STRONG

PRESSURE FROM THE UNIONS TO TAKE MEASURES TO ALLEVIATE EXISTING UNEMPLOYMENT SUCH AS THAT AMONGST THE MORE ELDERLY WORKERS

IN THE TEXTILE INDUSTRY.

المنطقة

FCO PLEASE COPY TO SELLERS, HONG KONG OFFICE LONDON AND

TO HONG KONG

SIR A ROSS

SENT AT 36/1537Z NWM

RECD AT 36/15382 /6 JBF

Ropested we requested)

GPS 400A

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