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Knitted Nightgarments

22.

By reference to the increase in Swedish production of playsuits classified as night garments, Mr. Ho stated that there was absolutely no case for restraint as this sector of the Swedish industry was not suffering injury. Liberalisation of this item would be the logical step.

Woven Nightgarments

23.

On woven nightgarments, Mr. Ho stated that he would again suggest a combined E/A scheme for the cotton and discontinuous synthetic items. He added that the combined imports of these garments from Hong Kong in 1969 amounted to 916 compared with the 1968/69 quota of 850 for cotton alone. The Swedish decline in production was principally due to a switch in demand for the knitted playsuits.

Sweaters of Wool and of Discontinuous Synthetic Fibres

24.

Mr. Ho expressed astonishment that Sweden was actually asking for restraint at the 1969/70 level (without growth), bearing in mind that with Hong Kong under restraint overall imports have increased from 7,198 in 1968 to 7,408 in 1969. Hong Kong's growth rate, Mr. Ho claimed, should not be less than 5%.

Slacks, Jeans, Trousers of Cotton and of Discontinuous Synthetic Fibres

25.

Mr. Ho stated that he found the Swedish request incomprehensible when production of both cotton and non-cotton slacks had gone up. He argued that Hong Kong had probably made a mistake last year in conceding on cottons. Hong Kong had now been knocked out by the United States on cotton; on non-cottons Portugal was clearly the principle supplier. There was really here no case for any action by Hong Kong on cotton or synthetic fibre slacks.

Towels and Bed Linen

26.

Mr. Ho argued that there was no case for restraint for either item, but in recognition of their Yugoslav difficulties, Hong Kong was prepared to offer separate E/A schemes for these two products.

Anoraks

27.

On continuous and discontinuous synthetic anoraks Mr. Ho stated that following restraint by Hong Kong, total Swedish imports in 1969 increased by over 40% compared with 1968. Swedish production was also increasing. The Swedish proposal for 5% growth was therefore unacceptable. On cotton anoraks, by reference to the latest Hong Kong export figures, Mr. Ho conceded that there might be a slight case.

Knitted Shirts

28.

In response to a question by Baron de Geer, Mr. Ho confirmed that in respect of knitted shirts he had suggested a combined E/A far -

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CONFIDENTIAL

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