TNAG-0165-FCO40-201-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 116

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Woven Synthetic Blouses: new restraints at rather more than the existing levels.

Synthetic Dress Shirts: new ́restraints at a level about or above the existing level. With help from Industries I we have been able to assist the strength of the case on each of the items concerned. My comments are the following:

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Anoraka Swedish production in 1968 was 800,000 pieces, a small reduction from 874,000 in 1967, and considerably more than the production figures for the previous two years. But imports rose in 1968 to over 1-million pieces, of which Hong Kong supplied 54.3%. We cannot therefore refuse continued restraint and the alternatives appear to be either to insist on the existing level of 795,000 (which is a very substantial increase on their previous figures) or to agree to settlement at the annual figure reached before the Swedes asked for consultations last December, 1.e. 531,000. I suggest we should agree to this but refuse to allow Hong Kong to drop below it to the Swedish request of 450,000 or to Hong Kong's own minimum of 378,000 which is not explained.

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Knitwears. Swedish production for the knitwear concerned discontinuous- showed a big drop in 1968 after several years of decline prochen &

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has the major share. Since Hong Kong proposed restraint impute Jashing at the existing level there is no strong case for disagreeing, particularly as total Swedish consumption is also falling.

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Women's underwear: there is doubt what garments are In fact within the proposed restraint and we can ask Mr. Jordan to make this clear. If he can show that the figures for production and imports are comparable, the story is of a heavy fall in production in 1968 and a very largo rise in imports with Hong Kong taking nearly half. We should therefore agree to the restraint and the Hong Kong proposal of the existing level is reasonable.

Woven synthetic Blouses: here again Swedish production fell heavily between 1965 and 1968 and imports rose proportionately with Hong Kong providing over 80% of the Imports. Although the main drop in Swedish production had occurred by 1967, there seems little reason for rejecting the Hong Kong proposal to agree to restraint level at a figure which is at least at the level of their 1968 trade.

Woven Synthetic Dress Shirts: this is a case where both production and consumption in Sweden have been rising; imports also rose and Hong Kong had 68% of the imports last year. But this is an expanding market and Hồng Kong have suggested earlier that it is the knitted shirts where the damage to Sweden is being caused but this is not a case for restraint by Hong Kong, which does not.uxport knitted shirts. Hong Kong's proposal of a restraint at a level of existing trade or substantially higher is not supported by any facts of damage in Sweden and it would there- fore only be consistent with our line on the other items to ask Hong Kong to refuse constraint on this one.

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