TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 87

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In the

The share of the U.K. market taken by imported trousers has increased from 44 per cent to 49 per cent between 1967 and 1968 and in the same period the increase in the volume of imports was seven times larger than the increase in production. first half of this year imports were rising at an even faster rate and in the absence of any evidence that production has increased pro-rata, it must be assumed that imports now account for more then half of consumption. Imports of m.n.f. trousers were equal to about 6 per cent of U.K. production of all kinds of trousers in 1968, and it seems reasonable to suppose that this figure increased to about 9 per cent as a result of the 50 por cent increase in imports in the first half of this year. The conclusior must surely be that this is as good a case on injury grounds as Some which you have agreed with Canada, Norway and Sweden. Indeed, our case against Hong Kong on this item may be better than any of them.*

Our case on sweaters is almost as good. You argued that Hong Kong's share of the U.K. market was only 7.3 per cent in 1968. In this case you were operating from a table which included production of infant's knitted outer-garments but not imports. The correct figure for sweaters which we gave you on another tablo - was 9.7 per cont. However, if the total is broken down between e.. men's and women's sweaters, as agreed in the case of Norway and Sweden, the U.K. case for imposing restrictions on imports of wool sweaters and men's m.a.f. sweatero from Hong Kong looks very strong :-

Men's Wool

1965

1967

1968

Production for U.K.

Imports

993

995

937

257

329

409

Women's Wool

Froduction for U.K.

1,194

1,016

956

Imports

335

301

348

Ken's m.m.f.

Froduction for U.K.

Imports

280

298

420

19

92

158

and in this connection you will wish to note that (a) Hong Kong accounts for a much larger share of U.K. imports than was the čase in Norway and Sweden and (b) imports increased very substantially in the first half of this year, rising by as much as 66 per cent in the case of men's wool sweaters. lie gave you all these figures a I am therefore at a loss to understand how you reached your conclusion that "in these sort of figures we would not even conside restraint on an "Article XIX-type" case."

* The first quarter figures, just received, show a

15 percent decline in production compared with the first quartú if 1968.

/Our case