TNAG-0162-FCO40-198-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 54

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As cotton slacks would be under restraint, this would be reasonable although he did not think there was any danger at all of substitution.

53.

He then turned to skirts and dresses (841.736) and recalled that imports from Hong Kong in 1967 amounted to 12% of production, 7% of imports and 4% of consumption. Norwegian production had actually increased and Hong Kong was not the principal supplier. The single market concept was again difficult to accept, particularly as the range of garments covered by the category was so diverse. But taking cotton and synthetics together for the sake of argument, the figures showed that combined -domestic production had increased, whereas Hong Kong's share of the market had remained stationary. Accordingly, he found it difficult to see a case for restraint. but was prepared to consider an export authorisation scheme for this item, although again he felt Norwegian fears of substitution were over-exaggerated.

54.

In the case of blouses and jumpers (841.739) Hong Kong exports represented roughly 115% of Norwegian production and Hong Kong remained the principal supplier to the Norwegian market. But increases in imports of cotton blouses from other sources might be the cause of the Norwegian industry's difficulties although presumably these were not now so serious as domestic production was increasing slightly. If Mr. Haerum could specify the actual synthetic blends which were causing the problem, there might be a case for an Export Authorisation scheme as Hong Kong did hold a substantial share in this particular sector of the Norwegian market.

55.

He concluded Hong Kong's assessment by referring to the items for which the Norwegian side wished export authorisations to be introduced. As far as the two cotton items (841.111 and 137) were concerned, Hong Kong had already agreed to institute an export authorisation scheme.

With regaid to the four non-cotton items (841.462, 468, 713 and 844). Mr. Haerum had earlier agreed to delete woollen skirts, dresses, etc. (841.468) from the request list. Although imports of the other items from Hong Kong were increasing slightly, the absolute quantities involved were still small. The regular provision of export licensing statistics would seem to meet adequately the needs of the Norwegian Government. The introduction of an E/A scheme might provoke speculation.

56.

Commenting on Mr. Jordan's appraisal, Mr. Haerum had to concede the logic of Hong Kong's argumentation and he and his colleagues would have to review their stand again as they had become accustomed to doing ever since the consultations first began in Oslo.

57.

Referring to the tentative agreement on cotton textiles reached in London in June, he confirmed that his Government still required exports of three categories of cotton garments (items 841.451, 841.117 and 841.134) tu ve restrained and an export authorisation scheme to be introduced for two other categories (841.111 and 841.137). He also confirmed that the Norwegian Government would agree to 10% swing and 10% carryover, and to 4% annual growth. He also accepted the starting date of 1st October, and, suggested the agreement should run for two years.

58.

Turning to woollen and synthetic items, Mr. Haerum said he could agree to a combined restraint level for woollen and synthetic knitwear. Reluctantly, and against instructions, he dropped the request for restraint on synthetic trousers (841.719) and synthetic dresses (841.736) and would make do instead with E/As as in the case of synthetic suits and jackets (841.713). He also accepted Hong Kong's proposal to provide export licensing returns instead of introducing an E/A system for women's synthetic undergarments (841.844) and men's woollen knitwear (841.462).

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