0003230
G.F. 323
CONFIDENTIAL
- 6 -
9.
Mr. McEnery observed that the output of the Swedish textiles industry as a whole had not fallen to any large extent. Baron de Geer admitted that the percentage drop was only 3%.
10.
Mr. Ho commented that if the Swedish industry was suffering as a result of imports then all imports and not only those from countries like Hong Kong were responsible: Taking anoraks as the case in point Mr. Ho pointed out that Finland had stepped in when restraints were clamped on Hong Kong.
11.
Baron de Geer reviewed his position which indicated that the Swedish side had not shifted from their final position reported in paragraphs 145 and 146 of the records of the talks held in Hong Kong in April 1970, except to offer 5% growth on all items other than sweaters, to be restrained for a further period. For the 5 new items the limits, based on the roll-back formula, were to be the Swedish 1969 imports.
12.
Mr. Ho expressed disappointment at the static Swedish position. He felt that taking all blouses as an example the overall level of imports from Hong Kong was not really very high and he thought therefore that the problem could be resolved by an E/A scheme covering all woven blouses.
13.
Following Mr. Ho's confirmation that he was thinking in terms of a combined E/A scheme for cotton and synthetic woven blouses, Baron de Geer observed that this was an interesting development and certainly a departure from the stand previously held by Hong Kong.
14.
Mr. Ho drew attention to Hong Kong's performance in cotton blouses where the annual notional level was 350, whilst the latest 12 months shipment levels were running at only 50 to 60.
15.
Baron de Geer pointed out, however, that from the Swedish statistics it was clear that the decline in cotton from 1968 to 1969 was much smaller than the increase in synthetics; the relevant figures being 178 and 387 respectively.
16.
Mr. Ho reiterated that the levels currently coming in were not likely to increase to any extent and there could therefore be no danger to the Swedish industry by having a combined E/A scheme for blouses of cotton and of synthetics. Mr. Ho also pointed out that the combined blouse production was also up
1968
1969
Cotton
545
515
Synthetic
264
305
809
820
There was therefore no damage nor injury to the Swedish industry.
Knitted Cotton Shirts
17.
In relation to knitted cotton shirts, Mr. Ho observed that there had been a significant increase in Swedish production, principally of cut and sewn shirts of knitted fabrics. Hong Kong was principally exporting machine knit shirts and the Swedish figures therefore did not compare like with like. Mr. Ho then
/also
CONFIDENTIAL