0003230
6.F. 323
CONFIDENTIAL
- 17 -
-
56.
In reply to Mr. Ho, Baron de Geer also gave a level of 2,700 for woollen etc. sweaters arrived at as follows:-
(i) sweaters of wool n. & b.
"
W. & g.
) 2,210 (1969/70 Level) ) + 3%
of discont. synthetic w. & g.)= 2,276
(ii) sweaters of discont. synthetic m.
& b.
428 (1969 Imports) 2,704
rounded down to
2,700
57.
Mr. Ho asked for a short adjournment to consider the
latest Swedish position.
58.
On resumption Mr. Ho expressed regret that the Swedish side had moved away from their one market concept for cotton and non-cotton shirts, a concept which they had forcefully argued for the past three years. He stated that if one looked at the synthetic shirts and blouses alone there was no injury. Synthetic woven shirt production increased from 400 in 1968 to 736 in 1969. Blouse production was also up from 264 to 305 in the same period. Exports of both shirts and blouses were booming and these figures certainly did not indicate any damage or injury. He had considerable difficulty therefore in conceding on these two items.
59. woven shirts. The current annual shipment level for these shirts was running at about 900 as against a notional restraint level of 1,160. He asked for confirmation that the Sweden Government acknowledged Hong Kong's rights under paragraph 1(b)(i) of Annex B of the C.T.A. and that there would be no question of Hong Kong being called under Article 3 on shirts until after the previous level of 1,160 had been passed.
Mr. Ho went on to welcome the liberalisation of cotton
60.
Baron de Geer confirmed that Hong Kong retained its rights under the C.T.A. to the limits previously achieved should the Swedish Government wish at some time in the future to call for restraint on cotton woven shirts, blouses or nightgarments.
61.
Reverting again to synthetic woven shirts and blouses Mr. Ho reiterated that there was no damage or injury because despite increased imports the Swedish industry continued to grow. On the other hand, presentationally a combined quota with cotton shirts might be acceptable if calculated as follows:-
Cotton shirt 1969/70 level
Non-cotton shirt 1969/70 level
5% growth
1.160
625 1,785
90 1,875
Compensation for other than dress shirts - 1969 exports
125
2,000
CONFIDENTIAL
/62.