2

Knitwear

4.

Imports of wool sweaters have increased as

production fell, but last summer the Swodoo

agreed that wool and discontinuous sweaters were

intorchangeable and on this lacle it was agreed

there was a caso for quotas on women's arcaters.

The 1900 figures show that the reduction in

production of women's nool sweaters was nearly twice

the increase in imports and that the massive

reduction in the (much larger) production of women's

discontinuous synthetic sucators was accompanied

by a massive reduction in imports. The case for

continuing the restraint is further weakened by

the evidence that production of mon's discontinuous

synthetic sweaters Dre increased and that this was

accompanieá by a decline in imports. This difference

in trend is also observable in the case of continuous

Dynthetic sweaters. This shows that we made a mistake

in adding men's knitwear to the restraint list in

February of this your without considering the position

on synthetics.

5. Wo have also failed to take into account the

position of cotton sweaters, imports of which appear

to have doubled in the past two years. Hong Kong's

share of this trade is negligible. The damage has boon

caused by Denmark, Portugal and Finland in that order.

The lack of Asiatic competition in this case confirms

our view that access to cheap Japanese fibre is the

main problem with British competition.

15.

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