groduction consists of the heavy ski swoators - I live one myself and I understand that the Forwegians admitted yesterday that their parket was being taken aney, fashion wise, by anorals. it is true that imports from Hong Kong were up very sharply in the first half of this year, and I understand that part of this is accounted for by evasion of the control on imports of womens' wool sweatore - aneaters for women have been desorilod as for boys - but given the decline in exports and the weakness of the Norwegian caso on worana* and girls' amestura, I do not see how it can be maintained that the Borwegian industry is being injured by ingreased importa of sens' and boo' sweaters from Hong Kong, or anywhere else.
13.
The addition of scrylics does not fundamentally change the picture; Norwegian production fell in each of the years 1506, 1967 and 1908, but rode significantly in the first half of the year. Exports fell, so that it could be argued that production for the hose carket åroreased by no less than 69 per cent. The figure# are asall, but, added to those for mool, they do show that the Norwegian industry has succeeded in selling significantly more in the hose market in the first half of this year then it did in the first half of last. Importa of acryl108 from Hong Kong have also zimen rapidly, but here again the Danes have done very well indeed and on the face of it a restriction on imports from Hong Kong would simply hand the market ov r to the Danes rather tuan to the Norwegian industry. There may be a came for non-liserinindo application of restrictions under Article XIT, but not for Betion against Hong Kong alone.
14. Settin Ater
The Norwegians originally insisted on a two year agreement for cotton itese and for that reason the restrictions are presumably not being discussed. However, the figures which have now been produced stor that, in addition to those which I have aentioned, the fiɔrwogians are not within their rights in saintaining discriminatory restrictions un imports from Hong Kong in the case of knitted cotton undergamento (table 1), trousers (table 2), skirta (table 3) and night garments (table4). In each case, inporta from third countries are evidently inor asing very rapidly and there is little evidence that the fall in domestio roduction in the thres out of four cases can be attributed to increased imports from Hong Kong. Indeed, in all cases imports fell between 1967 and 1968 and in two out of the three cases the increase in imports in the first six months of this year
Duld not justify action under the 1.f.a. against Hong Long alone.
MUNEN (CHE)
c.c. br. Milford (FCO
1.5. Carter (PCC), ~
Mr. G.9. hitohead (0)
WE.
1. Carey (1.1), 0.r. kiss : lliott (C1), Mimseich (1.1), o.r.
3. S HEART, Ind. 1 Div.,
23rd Sept. 1969.
•pt.*1969.
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