TNAG-0162-FCO40-198-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 20

0003230

G.F. 323

CONFIDENTIAL

- 4 -

First Meeting of Statistical Sub-Committee Tuesday, 24th September, 1968, 3.30 p.m.

Present:

Mr. Haerum

Mr. Ivarson

Mr. Engebrigtsen Mr. Rønning

Mr. Jordan

Mr. Jeaffreson

Mr. Lim

Mr. Yau

Mr. Tien

Mr. Cheong

Cotton Items

11.

Referring to the figures on cotton items provided by the Norwegian delegation, Mr. Jordan said that, in certain instances, Hong Kong export statistics indicated a lower level of performance than in the same period of the previous year. He doubted the need to control trade which was declining. Mr. Haerum replied that, as far as he was concerned, settlement had already been reached in London on the cotton items, as supported by the Commerce and Industry Department's letter of 30th July, 1968, and he did not see why the Hong Kong delegation should re-open the subject.

12.

Mr. Jordan assured Mr. Haerum that it was not Hong Kong's intention to disregard the understanding reached in London.

Rather, he was merely inviting the Norwegian delegation's attention to more recent statistics which showed a declining trend in the first eight months of 1968, and suggesting that the Norwegian side might wish to reconsider the tentative restraint agreement already reached in the light of more up to date statistics.

13.

Mr. Haerum and Mr. Rønning were of the opinion that statistics for less than one year were not of much value in assessing future trends. Mr. Ronning further claimed that the decline in cotton textiles exported to Norway could be attributed to seasonal factors, and to the swing in consumer preference to mixed cotton/synthetic fibre garments. The main suppliers to the Norwegian market of these were Hong Kong, Japan and Taiwan. Another crucial factor was the competitive price of Hong Kong products.

14.

Mr. Tien pointed out that as far as trousers were concerned, although export statistics for January July only were available, the seasonal factor was in fact accounted for as most shipments were made in January each year. Shipments in the early part of the year would therefore set the pattern for the whole year.

From his own experience, most of the shipments of trousers had been non-cotton and permanent press. He wondered whether the Norwegian industry was equipped for this process.

15.

Mr. Jordan said that as Hong Kong export statistics did not seem to indicate any swing from cotton to mi.ed fibre garments, he would like to see a breakdown of Norwegian imports by source. If Hong Kong was as competitive as claimed, it should be gaining an increasing rather than a smaller share of the market.

16.

Mr. Rønning admitted the Norwegian industry did not have the ovens necessary for permanent press finishes. But he queried why the Sub-Committee should examine the more recent figures instead of using the 1962-67 figures as in the earlier Oslo discussions. He

/cited the

CONFIDENTIAL