TNAG-0160-FCO40-196-Exports-of-textiles-to-Norway-1969 — Page 29

Norwegians' figures now reveal that the increase in

imports from Hong Kong in 1968 was very small and it is very small and it is

difficult to see how it could have had any significant

effect on Norwegian production which nevertheless fell

heavily.

(ii) The case on men's and boys' sweaters is statisti-

cally stronger in that a restraint covering wool and

synthetics could have been justified on the grounds

that total production in the first half of this year

had fallen by a quarter, but it was our view that such

a concession could only have been justified if the

Norwegians had agreed to drop the restraint on women's

and girls' sweaters. The fact the restraint has been

confined to wool sweaters of course makes the presenta-

tional problem that much easier, though all the indica-

tions are that Norwegian production of wool sweaters

satisfies quite a different market than those from Hong

Kong.

2. In view of the foregoing we attach considerable

importance to the reservation in paragraph 4 of your

restraint letter.

3. We think it would be appropriate if we were to tell

the Norwegians that, having had an opportunity to

consider the outcome of the negotiations in association

with you, we were content with the settlement that had

been reached, but wished to draw attention to the

reservation in paragraph 4 of the letter of restraint,

to which we also attach importance.

(11516) Dd.392077 300m 10/68 G.W.B.Ltd. Gp.863

Land

Mav

то

NOTHING TO BE WRITTEN IN THIS MARGIN