TNAG-0164-FCO40-200-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 62

Reference

This again seems to make a case for continued restraint. The Swedes however are seeking a reduction (even allowing for the exclusion of women's continuous synthetic garments (in which Hong Kong's trade has been very small). There seems no justification for this reduction and again if the Swedes mean what they say about applying Annex B of the CTA, there should be an increase.

Women's and Girls knitted continuous amf'underwear

The

Miss Welch has pointed out that there is doubt about the coverage of this heading, and about the Hong Kong figures; this ought to be sorted out. figures as they stand, however, show a steady decline in production from 1965- 1968, and a heavy fall (from 4,060,000 to 3,026,000) between 1967 and 1968, with a large rise in imports (from 3,455,000 in 1965 to 7,100,000 estimated in 1968) with Hong Kong responsible for nearly half the total.

If we accepted the figures, and agreed in principle to an extension of coverage, this would be prima facie a good case for restraint.

Woven Synthetic Blouses

Swedish production has fallen heavily between 1965 and 1968 (520,000 to 264,000), and imports have risen from. 288,000 to 603,000, with Hong Kong providing over 80% of imports.

Miss Welch points out that the big fall in Swedish production came between 1965 and 1967, and that there is no evidence of a fall in production of blouses of all types (production of cotton blouses rose slightly last year). It is true that there seems no reason why the Swedes should ask for restraint now rather than last year, but I find some difficulty in treating this as a nuch weaker case than those which were agreed last year.

Woven Discontinuous mmf dress shirts

Production of cotton and discontinuous mmf shirts rose very considerably between 1967/68 (from 253,000 to 400,000). Imports also rose (from 520,000 to 918,000), and Hong Kong had 8% of the 1968 imports.

But this seems to be a expanding market, and there does not in this case

If it is, AS Miss Welch says, knitted sem a justification for restraint. shirts of which production is declining and imports are rising, this is not a case for restraint by Hong Kong wo does not expert knitted shirts.

3.

case on

Setting aside the question whether we should in principle agree to any further restraints by Hong Kong, then it seems to me that the Swedes have a Buch "benchmarks" as have so far been esta lished (for what they are worth) for continuation of restraint on synthetic anoraks and wool and synthetic knitted outerwear, and for women's knitted mmf underwear if the figures are correct and complete. The weakness of the case for woven inmf blouses is partly that there has been no serious deterioration in the position between 1967 and 1968 and partly that there is insufficient evidence of what has hapened to other types of blouse; all the same, there does seem to be some case. For mmf shirts, on the other hand, there does not seem to be a case.

44. In any event, there seAMS no justification for any reductions in any of the restraint levels agreed last year, though the case for claiming an increase is mainly that the Swedes themselves have quoted Annex B of the CTA, which provides for annual increases in cotton quotas. The restraint levels proposed for unde wear and blouses are near the 1968 actual figures (slightly below for underwear, and slightly above for blouses), and about 25% up on 1968 trade for shirts. This is not out of line with CTA requirements, if these are to be applied,

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