0003230

G.F. 323

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statistics were kept on panty-nylons and export figures before that time might have included this item but felt, nevertheless, that the discrepancy was significant. Mr. Henriksson said he could offer no immediate explanation but thought that exports of panty-nylons prior to 1967 were negligible.

120.

Mr. Ho said that if factories producing half-slips, panties, vests, etc. were also making panty-nylons, there might have been a shift of workers to concentrate on the production of panty-nylons. Mr. Strandberg said that panty-nylons were made in factories producing stockings as the machines used for the manufacture of panties and panty-nylons were different. He noted however that there had been expansion in the panty-nylon sector.

121.

Mr. Ho expressed the opinion that the decline in panty production could be attributable to fashion trends. He tabled an advertisement extracted from the British newspaper the Observer, indicating that girls were now doing away with panties in preference for panty hose. Mr. Strandberg said that it was difficult to substantiate this observation.

122.

Mr. Ho said that he could see no case for a restraint. Baron de Geer said the E/A figure up to 18th April 1970 (the date on which issue of E/As was suspended) already amounted to 6,767; with two and a half months to go, the notional annual level was roughly 8,000.

123.

Mr. Ho recalled that in Geneva, Mr. Strandberg gave the proportions of productions of nylon and rayon panties for 1967 and 1968 as

1967

1968

nylon rayon

nylon

rayon

25 : 1

2 : 1

He wondered if 1969 ratios were available. to find out.

Mr. Strandberg promised

124.

Mr. Ho said that the question of damage was the over-riding consideration. Whereas 1969 production represented the factual position, figures for 1968 wero 'guesstimates'. There was no way to tell if production of panties had gone up while that of slips etc. had suffered a decline. Baron de Geer observed that this was another argument in favour of one composite quota for similar items for Hong Kong.

125.

The meeting adjourned at 6.00 p.m.

CONFIDENTIAL

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