0003230

G.F. 323

CONFIDENTIAL

- 11

34.

When the meeting was reconvened about twenty minutes later Mr. Ho told Baron de Geer that he still had considerable difficulty over the latest Swedish proposals, and made the following observations:-

35.

(a) growth on woven shirts of discontinuous synthetic fibres,

must be based on the actual 1969 intake, plus compensation for sports shirts to be included under restraint;

(b) there must be growth on sweaters of wool and discontinuous

synthetic fibres, adding that there was this same problem the previous year but eventually growth was agreed;

(c) when talking in terms of woven shirts and underwear it was logical perhaps to look at cottons and non-cottons together;

(d) by the same token it was logical to group knitted shirts

and sweaters of cotton with knitted shirts and sweaters of continuous synthetic fibres;

(e) on the question of slacks, jeans and trousers even E/As

could not be envisaged for either the cotton or synthetic item; and

(f)

apart from growth and carryover, the agreement should include a swing provision of at least 10%.

Mr. Ho referred to the Swedish arguments on the decline of the woven garment industry overall and stated that there appeared to be two alternatives -

(a)

on the current basis, woven shirts, blouses and night garments of cotton were historically linked together: the same basis could again be applied to cottons and non-cottons separately;

or

(b) to look at each garment separately but combining cottons

and non-cottons in any solution.

He saw logic in the second alternative and it would be equally acceptable to him to add on blouses and night garments to shirts and to have a combined group for cottons and non-cottons together. A possible variation to this alternative would be to have woven shirts together with blouses only. This latter arrangement, Mr. Ho observed, would overcome any possible difficulties with women's shirts. Any of these possibilities Mr. Ho added, would certainly make the arrangement much more functional. In reply to Baron de Geer's query Mr. Ho confirmed that the alternatives proposed would still maintain the distinction between knitted and woven garments.

36.

Baron de Geer then stated that he wished to consult his Government and industrial advisers again and proposed that the next meeting be at 11.30 a.m. on 29 May 1970. Mr. Ho agreed.

CONFIDENTIAL

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