TNAG-0165-FCO40-201-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 112

HONG KONG/SWEDEN TEXTILE NEGOTIATIONS

There is no disagreement between CRE 1 and Industries 1 that voluntary restraints should be agreed on garments of wool and man made fibres only for very strong reasons and on the basis of statistics demonstrating a damaging rice in imports and that we must be consistent with our policy towards our own textiles industry. The issue between us is how these considerat- ions can be reconciled with the situation facing Hong Kong. CRE 1 question Industries 1's view of what the implications of conceded restraints might be and argue that the consequences of rofusing restraints must be taken into account.

2. The existing arrangements in which Hong Kong restrains certain non-cotton textiles to Sweden or makes regular reports of the volumes of exports ( by means of export authorizations) and the proposals for the next twelve months are listed in Annexe A. Hong Kong intends to negotiate with the Swedes for as high restraint levels as she can but is prepared to settle at levels around the actual trade when Sweden requested action at the end of last year.

3. Statistics of Swedish domestic production and imports and of Hong Kong's share in imports are given in the fiye tables at Annexe B. On all the goods concerned it is clear that imports from llong Kong have been rising rapidly since 1965 and that this rise was at least maintained in 1968. On the other hand Swedish production of anoraks, knitwear and blouses fell in 1968 only by a very small margin; production of women's underwear declined sharply but there is doubt whether this decline is the result of an increase in imports since the Swedes have not made clear whether the statistics relate to the same underwear; production of woven dress shirts rose substantially in 1960.

4. It should be noted that Hong Kong's negotiation arrangements with Sweden on non-cotton textiles are by no means unique. Sweden has similar arrangements with.Portugal, Yugoslavia, South Korea and Taiwan. Hong Kong also restrains exports to Canada of synthetic shirts (which Canada has asked phould be sharply reduced) and two other items; certain items exported to liorway are restrained but Hong Kong's sweaters hitherto restrained to West Germany appear recently to have been liberalized.

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