0003230 G.F. 323
CONFIDENTIAL
25
Sweaters, pullovers, slipovers, jumpers and cardigans, knitted or crocheted, wholly or mainly of continuous man-made fibres, men's and boys' and romen's and girls' wear (M&B ex 841 863) (& Gex 841 856)
K
137. Mr. Ho pointed out that there appeared to be a difference between Hong Yong and Sweden in the classification of roll-ock shirts. Such garments were classified as shirts by Hong Kong but as sweaters by Sweden. his resulted in a discrepancy between the quantity of sweaters recorded in Hong Kon 's export statistics and Swedish import statistics. Ir. Ho reminded the "wedish side that in 1969 a distinction was made between discontinuous synthetics (1.e. wool-type) and continuous synthetics (i.c. nylon silk). The main suppliers of sweaters were Pinland and U.K., not Hong Kong. It followed therefore that Hong Kong should not be singled out as being the cause of market disruption. Daron de Ccer contended, however, that it was "ong Kong's low unit price compared to Fortugal and .K. that was causing market disruption. Mr. ion said that polyester prices were higher than nylon prices: Fong Kong exports vere mainly of nylon. UK on the other hand, produced the more expensive polyester (wool type) knitwear, hence the higher cost of British sweaters. As r. Ho had noted, these were different products.
Clacks, jeans and trousers, not knitted or crocheted, wholly or
ainly of discontinuous synthetic fibres, mon's and boys' and women's and girls' woar (Bex 841 719) (V & Gox 841 748)
138. Mr. Bernunger said that production had increased by 3% from 2,292 to 2,364 during 1968/1969 but imports had increased by 40% from 1,026 to 1,593 of which long "ong's performance increased by 150% from 136 to 337. He also expressed concern that ong Kong might have exported cotton trousers etc. as synthetic ones. Mr. Ho said the possibility of substitution was ronnote because of the checks made on exports under cuota. In any case, Hon Kong had not even been able to utiliso fully its cotton quota. As regards the reason why the unit price of Portuguese imports was higher, Mr. Tien explained that this was again due to the use of different materials: Fong Kong used polyester cotton and Portugal used polyester viscose.
139. Summing up, Mr. Ho said as both Swedish production and exports were rising there was no case for a restraint on Hong Kong imports. Baron de Ceer admitted that the real threat came from Portugal and said that this would be one of the items for consideration
during the course of the next Sweden/Portugal discussions. Meanwhile, he noted that in January and February of 1970, imports from Hong Kong had increased alarmingly from 10 to 136 comparing with the figures for the corresponding period last year. It was therefore necessary to take measures to protect he Swedish industry before it suffered irreparable damage.
Night garments, not knitted or crocheted, wholly or mainly of discontinuous synthetic fibres, men's and boys' wear (ex 841 772)
140.
Baron de Goer said that there was a prima facie case of market discruption in night garments. Whilst imports had risen sharply, Swedish production had dropped. Hong Kong was the leading supplier. Mr. Ho referred to the increase in vodish production of cotton knitted night garments (841.439 and 841.442) duc principally to increased domand for the new type of night garments of cotton pile fabric. He argued that "ong Kong could not be causing injury if the Swedish industry had divorted part of its production capacity to this new item, thus foregoing part of its share in the
CONFIDENTIAL
/domestic