0003230
G.F. 323
CONFIDENTIAL
- 17
--
89.
Mr. Ho observed that countries such as Finland, Italy, Portugal, Macao and Austria had improved their market share by 50% overall, which indicated justification for Sweden to restrict imports from these suppliers in equity to Hong Kong. Whilst agreeing that there might be a case against Macao and possibly Portugal, Baron de Geer said that he could not accept there was a case against Finland.
Shirts, not knitted or crocheted, wholly
or mainly of discontinuous synthetic fibres, ex 841.764. ex 841.762
90.
Mr. Bernunger said that total shirt production of all fibres, knitted and woven, declined by 10% in 1969 whilst total imports increased by 30%. Only knitted cotton shirts and woven shirts of discontinuous synthetic fibres were able to register an increase in production. Total supply had increased by 1,183; of this total Swedish production took up 336 and imports from Hong Kong, 537.
91.
7
In reply to Mr. Ho, Baron de Geer said that imports of shirts of discontinuous synthetic fibres from Hong Kong, South Korea and Taiwan were under restraint. The restraint agreement with Portugal was confined to cotton shirts.
92.
Mr. Ho said that in the Hong Kong/Swedish agreement, the restraint, as far as Hong Kong was concerned, was only on dress shirts. He wondered what other shirts were involved in the Swedish figures for woven shirts of discontinuous synthetic fibres.
93.
Baron de Geer said that there must have been a misunderstanding on this point because the Swedes believed that the restraint was meant to cover all shirts.
94.
Mr. Ho produced a photostat copy of an extract from a Swedish statistical document which made separate reference to dress shirts and commented that the separate classification implied that there had been no misunderstanding.
95.
Mr. Henriksson said that this statistical table was extracted from a security graded Swedish statistical document which was not intended for public consumption. Baron de Geer said that he found it necessary to lodge a formal protest that such a document should be introduced by the Hong Kong delegation in negotiation.
96.
Mr. Ho said that he was surprised to learn that the statistics he tabled were classified material. He explained that the piece of paper had been given to him, unsolicited, by a commercial source. The Hong Kong delegation was not aware of the security grading of the document and had no intention whatsoever to embarrass the Swedish delegation.
97.
Commenting on the photostat copy of the statistical table, Mr. Henriksson said that dress shirts were not included in the Swedish nomenclature. No special statistics were kept for dress shirts and there was no means to separate them from other types of shirts. The term 'dress shirts' was merely transposed to the document from the Hong Kong/Swedish restraint agreement.
98.
Mr. Ho said that he was glad that Mr. Henriksson referred to dress shirts in this manner which indicated that, despite the fact Hong Kong exercised unilateral restraint, the agreement was reached originally only on dress shirts. He recalled a letter. sent by Mr. J.C. Roberts to Mr. Henriksson in September 1969 regarding an apparent problem of classification which had been
CONFIDENTIAL
/brought