0003230

G.F. 323

CONFIDENTIAL

4.

(k) Woven Cotton Nightgarments

The relevant percentages were

1967

1968

1969

Total Imports

Hong Kong

Portugal

Easter European countries

65.3%

63.6%

75.6%

46.1%

34.2%

42.9%

1.4%

5.0%

7.6%

2.3%

6.8%

10.5%

Mr. Ho referred to the increases in imports from Portugal and the Eastern European countries.

(1) Knitted Shirts of Synthetic Fibres New Item 1

M

Mr. Ho stated that the figures indicated clearly that Hong Kong's share was really insignificant. He added that it was countries like Italy, Portugal, Yugoslavia and South Korea who were responsible for any injury claimed by the Swedes. He also drew attention to the low prices of imports from Italy. Finally, Mr. Ho also stated that his advisers had intimated that imports from territories like Singapore would soon make themselves felt.

(m) Undergarments of Continuous M.M.F. m. & b. New Item 2

In relation to the figures for this item Mr. Ho remarked that this was a relatively small market.

(n) Continuous M.M.F. Sweaters. New Item 3

Mr. Ho stated that Hong Kong's share of the market was insignificant and that it was Sweden's E.F.T.A. partners, namely U.K., Finland and Portugal who were the principle suppliers. Mr. Ho stressed that imports from Hong Kong, using different materials, were actually catering to a different market.

He added that it was not the price which mattered, but the right fashions and styles were much more relevant.

(o) Slacks etc. of Discontinuous Synthetic Fibres

New Item

Mr. Ho observed that the figures for Hong Kong were insignificant. The relevant percentages were

1967

1968

1969

Total Imports

25.4%

33.4%

43.4%

Hong Kong

6.99%

4.4%

9.2%

Portugal

6.1%

18.6%

25.5%

All low cost countries (except H.K.)

14.8%

25.8%

28.9%

Swedish production increased from 1,947 in 1967 to 2,364 in 1969. This was indicative of a strong industry and there was therefore no threat. Mr. Ho also observed that coupled with the cotton slacks, Hong Kong had actually lost ground.

/(p)

CONFIDENTIAL

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