TNAG-0160-FCO40-196-Exports-of-textiles-to-Norway-1969 — Page 32

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DRAFT TELEGRAM TO HONG KONG

Ninuatio

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We agree that the terms are the best that could be obtained in the circumstances. The figures given have been examined by the Board of Trade, on the basis of which we would like to record the following comments:

(1) The Norwegian case on women's and girls' sweaters is weak. Total production in the first half of this year has levelled off in spite of a drop in exports and substantial increase in imports from LFTA countries. On the other hand imports from Hong Kong have increased only very marginally and we understand that no evidence was produced by the Norwegians to show that there was any connection between the small decline in Norwegian production and the very small increase

in imports from Hong Kong. We accept that imports from Hong Kong may have been held down by the quotas in the first half of this year, but in this connection we note that the Norwegians' figures now reveal that the increase in imports from Hong Kong in 1968 was very small and it is difficult to see how it could have had any significant effect on Norwegian production which nevertheless fell heavily.

11) The case on men's and boys' sweaters is statistically stronger in that a restraint covering wool and synthetics could have been justified on the grounds that total produc- tion 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 presentational problem that much easier, Though all the indications 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 impor- tance to the reservation in Paragraph of your restraint

letter.

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