TNAG-0163-FCO40-199-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 64

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of the total supply. Unfortunately, the figures for the whole year regarding these items are not yet available but will be published very soon.

In the knit-wear industry, the trend was equally disquieting in 1968. Manufacture of knitted fabrics taken apart, the decrease in production amounted to 13.1 per cent. Imports of knit-wear goods rose by some 1,250 tons from 9,031 tons in 1967 to 10,285 tons in 1968 and exports increased by some 830 tons from 1,691 tons to 2,522 tons. The total supply increased by some 1,060 tons to 17,764 tons. of the total supply, imports represented 58 per cent compared to 54 per cent in 1967.

According to Swedish law, every industrial plant which expects that it will be necessary to reduce its number of employees must give warning to this effect in advance. The number of such warnings given increased in 1968 compared to 1967 - when the situation already was serious – - and affected particularly the ready-to-wear industry. The number of employees concerned rose from 1,746 in 1967 to 2,392 in 1968. This indicates, of course, that the opportunities for employment deteriorated still further during the year.

Consequently, unemployment in the textile sector did not impro- ve in 1968. During the last month, 2,7 per cent of the employ- ees in the clothing industry and 3,1 per cent of the workers in the remaining sectors of the textile industry were without work. These figures represent a much higher percentage compa- red to the other branches of Swedish industry. Furthermore, it should be noted that the total number of unemployed in Sweden declined last year, in contrast to the development in the textile industry.

Thus, it should be evident that the Swedish textile industry is still facing serious problems. It is necessary to continue to keep the development in check, in the long run as well as on the short range. In order to find out how these serious social and economic problems may be solved satisfactorily, the Government decided in May last year to appoint a Royal Commission to inquire into the matter. The Commission has now been at work for some time and may be able to present its findings and conclusions some time next year. In the mean- while, the Government cannot refrain from measures to limit imports to quantities that can be absorbed on the market without causing serious disruptions. Much to its regret, therefore, the Swedish Government must request the Hong Kong authorities to prolong the local temporary export control for another year.

Stockholm, March 18, 1969