TNAG-0162-FCO40-198-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 53

0003230

G.F. 323

CONFIDENTIAL

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Second Working Session:

3.30 p.m., Wednesday, 25th September.1968.

Present:

Mr. Haerum

Mr. Ivarson

Mr. Jordan

Mr. Jeaffreson Mr. Lim

Mr. Engebrigtsen Mr. Rønning

Mr. Yau

49:.

Mr. Jordan said that as Mr. Haerum had presented the Norwegian case for restraint and for export authorisations on both cotton and non- cotton items and Hong Kong had examined the bases of these requests and sought clarification on certain points not previously clear, he now proposed, if Mr. Haerum agreed, to run through Hong Kong's assessment of the Norwegian case and then give Mr. Haerum and his colleagues an opportunity to comment. Mr. Haerum agreed with Mr. Jordan's proposal and also thanked him for agreeing to allow the Norwegian industrial advisers to attend the working sessions.

50.

Mr. Jordan then made reference to the discussions in London in June at which Hong Kong had tentatively agreed to restrain exports of three categories of cotton garments (841.451, 117 and 134) and to introduce export authorisations for another two categories (841.111 `and 137). He reconfirmed Hong Kong's willingness to restrain at the proposed levels if the Norwegian Government so wished despite the fact that the latest export licensing figures and trade statistics raised certain doubts on whether restraint was really necessary. He also expressed continued willingness to place cotton suits and blouses under an export authorisation scheme. He suggested 1st October 1968 as the date of commencement since this was the nearest convenient date and would fit neatly with the current arrangement covering cotton nightwear.

51.

Turning to the non-cotton items Mr. Jordan recalled that, in Löndon, Hong Kong had indicated willingness to restrain woollen jackets, jumpers, sweaters, cardigans and pullovers for women and girls (841.465) to 1967 levels. The Norwegian side had also sought restraint on similar acrylic items (841.866). In the case of the latter. Hong Kong was only the 4th supplier, but other Scandinavian countries were perhaps suppliers in a different price bracket. Nevertheless they were likely to benefit from a restraint on Hong Kong. In these circumstances, Hong Kong would be prepared to concede restraint for one year only in the first instance. It was his own view that the decline in Norwegian production was due to competition from Denmark rather than to imports from Hong Kong. However, taking wool and acrylic knitwear together, Hong Kong had enjoyed a substantial share of the Norwegian market, and he was prepared to consider a combined restraint limit for woollen and acrylic knitwear for a period of one year.

52.

As far as synthetic slacks (841.719) were concerned, Norwegian production was increasing and Hong Kong could not subscribe to the

single market' concept. Cotton and synthetic trousers were intended for different markets. Cotton shipments were largely jeans, while the synthetics were of a different quality for the more stylish sector. There was some doubt also whether the Norwegian industry could replace permanent press synthetic trousers from Hong Kong if restraint were imposed, although, in any event, exports from Hong Kong in 1968 had declined sharply. It was difficult to see a case for restraint. Hong Kong would be prepared to offer an export authorisation scheme.

/As cotton

CONFIDENTIAL

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