TNAG-0164-FCO40-200-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 102

CONFIDENTIAL

HONG KONG TELLGRAM NO. 339 TO FOREIGN AND COMMONWEALTH OFFICE

-5-

KOREA WHICH RECEIVED A QUOTA OF 210 FOR THE YEAR ENDING 28/2/70

REPRESENTING 90% OF 1968 IMPORTS INTO SWEDEN SEMICOLON BUT THIS

LEFT OUT OF ACCOUNT THE LICENCES FOR 60%, ISSUED IN 68/69, SOME

4

375 OF WHICH, THE SWEDES ADMITTED UNDER EXAMINATION, WOULD BE

IMPORTED IN 1969 OUTSIDE QUOTA

(111) BUT 700 MIGHT BE LESS UNREASONABLE.

DE GEER WAS ADAMANT ON THIS. PERHAPS KOREA ACCEPTED ONLY ON CONDITION

THAT HONG KONG WAS CUT BACK TOO.

10. IN VIEW OF THE DISRUPTION OF THE SWEDISH MARKET FOR (A) TO

(D) OF PARAGRAPH 8, THE DEFINITE THREAT TO (E) ARISING FROM THE

GROWTING IMPORTS FROM HONG KONG AND SOUTH KOREA, AND THE IMPRESSIVE

BENCHMARKS IN PARAGRAPH 7, WHICH ARE HIGHER THAN IN ANY OTHER CASE IN

WHICH WE HAVE CONCEDED A NON-COTTON RESTRAINT (SEE MY TELEGRAMS 310

AND 318), I CONSIDER THAT A GOOD CASE HAS BEEN MADE CUT FOR

MEETING THE SWEDISH REQUESTS ON ALL NON-COTTON ITEMS. I THINK

THAT TO REFUSE RESTRAINTS IN THESE CIRCUMSTANCES WOULD STRENGTHEN

MR. STANS CASE. BUT I ACCEPT THAT THERE MAY BE GOOD REASONS

FOR POSTPONING DECISION.

1 THEREFRORE ASK THAT ABOUT 29 MAY

STOCKHOLM SHOULD INFORM THE SWEDES THAT WE WOULD BE PREPARED TO

MEET THEIR NON-COTTON REQUESTS AT THE FOLLOWING FIGURES-

(A)

2,200

(B)

450

(C)

3,458

(D)

(E)

549

700

SUBJECT TO OUR FINALISATION OF THE NECESSARY FORMALITIES WITH

THEIR CONSUL-GENERAL IN HONG KONG. THIS MIGHT OBVIATE MY

HAVING TO SEND A DELEGATION TO STOCKHOLM TO FINALISE MATTERS,

11./ IF YOU

CONFIDENTIAL