TNAG-0165-FCO40-201-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 172

TO.

CYPHER CAT A

ROUTINE STOCKHOLM

TEL NO CREDA 2

H.K. Bill.

して

TO BOARD OF TRADE

6 JUNE 1969

CONFIDENTIAL

ADDRESSED TO BOARD OF TRADE TEL NO CREDA 2 OF 6 JUNE

RFI TO HONG KONG AND FCO.

FOR STEWART FROM MACKENZIE.

HONG KONG TEXTILE NEGOTIATIONS.

YOUR TELEPHONE CALL OF 5 JUNE.

RECEIVED IN RC ISTRY No.51

10 JUN 1969

H+KK 6/571/1

SINCE THE CONSULTATIONS IN THE SUMMER OF 1968 THE GENERAL

ECONOMIC RECESSION HAS GIVEN WAY TO A BOOM WHICH IS STILL

GATHERING MOMENTUM. THE SWEDISH TEXTILE AND CLOTHING INDUSTRIES

ARE SHARING IN THE GENERAL RECOVERY, ALTHOUGH SO FAR PRODUCTION

ARE HAS NOT IMPROVED OWING TO HEAVY STOCKS WHICH, HOWEVER,

NOW BEGINNING TO SHRINK. THE LEVEL OF ORDERS IS RISING.

2.

ACCORDING TO THE STATE ECONOMIC RESEARCH INSTITUTE,

о

THE OUTLOOK FOR THE CLTHING INDUSTRY IS MORE PROMISING THAN IN

Λ

1968. FOR 1969 THE INSTITUTEFORECASTS AN INCREASE OF ABOUT

TEFORE

2.5% IN THE VOLUME OF CONSUMPTION, A CONTINUED DECREASE IN STOCKS, A 10% INCREASE IN EXPORTS AND A SLOWER GROWTH IN

IMPORTS THAT IN 1968. THE LATTER IS ESTIMATED AT ABOUT 7%

WHICH IS ABOUT HALF THAT OF THE INCREASE LAST YEAR, BUT RATHER

ON THE BIGGER THAN THAT IN 1967. THE INSTITUTE THINKS THAT

BASIS OF THE ABOVE CALCULATIONS, OUTPUT IN 1969 SHOULD FALL BY

LESS THAN 1% COMPARED WITH A DECLINE OF ABOUT 5% IN 1968. HOWEVER,

IN THE INSTITUTE'S VIEW THIS SLIGHT REDUCTION WILL

BE MORE THAN OFFSET FOR THE TEXTILE INDUSTRY AS A WHOLE BY

A CONTINUED RISE IN OUTPUT OF YARNS, FABRICS AND OTHER TEXTILE

PRODUCTS.

1:

!

/3. UNEMPLOYMENT