TNAG-0162-FCO40-198-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 48

0003230 G.F. 323

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26.

At this juncture Mr. Ronning produced samples of cotton and cotton/synthetic mixtures to illustrate the similarity between the two types of product. Mr. Jordan and fir. Tien, while agreeing that there were observable similarities, felt that cotton and blended trousers would appeal to customers with different purchasing powers. Reverting to the question of restraint, ir. Jordan said he was convinced that if Hong Kong restrained exports of cotton trousers, but not those of synthetic fibres, the only result would be that other suppliers would export more cotton trousers to Norway; in present circumstances, he did not envisage Hong Kong increasing its exports of synthetic trousers to Norway. Consequently, he would not be able to recommend to the Hong Kong Government that exports of this item should be restrained, although he would be prepared to consider the introduction of an Export Authorisation scheme which would give the Norwegian authorities advance knowledge of shipments.

27.

Mr. Rønning asked what the time-shipment pattern for cotton/ synthetic garments was. Mr. Tien replied that the bulk of shipments was made in January each year at the latest March as the trade was seasonal. The blends were, to the best of his knowledge, exclusively cotton/polyester.

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28.

Mr. Rønning was concerned about all synthetic fibres and not simply polyester which represented only a part of the problem. Mr. Jordan retorted that Hong Kong could not be expected to consider restraint in areas where there was no export performance; any restraints or controls agreed upon could only apply to the existing trade in particular products. The figures compiled from. Hong Kong export licensing records gave a more detailed picture of the trade in 1968 - also the figures were slightly more accurate than those shown in the trade statistics which were compiled from a different source and he would be grateful if Mr. Haerum and his colleagues would examine these closely and consider narrowing the scope of their request before proceeding further.

29.

Mr. Haerum replied that, while he would be quite happy to do as Mr. Jordan suggested, he would not be able to deviate from his negotiating instructions. It also had to be borne in mind that in 1967 the latest period for which complete statistics were available Hong Kong's share of the Norwegian synthetic trousers market was a substantial 12%, and that the Norwegian authorities considered there was a single market for trousers of all fibres.

CONFIDENTIAL