7. It seems to us that the most we could concede to the case
made by the industry is that a close watch should be kept on
the level of imports of knitted cardigans, sweaters, etc. We
have already asked Hong Kong to keep us informed of the current
level of their export shipments in all the categories covered
by the case. Assurances that "a close watch will be kept"
are not likely to carry very much conviction, and it would be
desirable to back them with an indication that if total imports
of knitted cardigans, sweaters etc. reach a given proportion
(say 30% by value) of the domestic market, and it is
demonstrated that there has been significant disruption of the
U.K. industry, we would be prepared to seek voluntary restraints
on the major suppliers. We could reasonably link such
assurances of monitoring and future review with an indication
that we would want to be satisfied that the U.K. industry was
able to meet the demand, and had taken any necessary steps to
expand outside the traditional areas.
8. A provisional assurance that we would be prepared to
restrict imports to 30% of the domestic market might well
rest restrain too aggressive selling from Hong Kong and others.
It is at least possible that it would be regarded by U.K.
manufacturers as sufficient reassurance to give them confidence
in the future, and to encourage them to undertake desirable
investment.
4.