TNAG-0165-FCO40-201-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 179

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views are set out in annexe B. They argue it is not justifiable to regard changes in production and the volume of imports due to a change in fashion as sufficient reason for restraining imports. They are particularly opposed to the main test of injury being a percentage share of consumpt- ion taken by imports, since this takes no account of the historical position, does not conform with the G.A.T.T. provisions and is particularly prejudicial to the interests of the UK industry.

(7) CRE 1 considers that we are not now concerned with Article XIX and that Sweden would not find it difficult to avoid being called to account in the G.A.T.T. for unilaterally restraining rapidly increasing imports from a supplier such as Hong Kong, which has few friends. Article XIX is not relevant to this case and the precedents for use of Article XIX are not encouraging.

(8) The difference of view on each of the categories of garment under negotiation is as follows;

ANORAKS

Industries 1 consider there is no case for restraint since Sweden's production has dropped only 9 per cent in 1968 and there is no evidence of injury while imports have increased rapidly to meet the growing market. CRE 1 consider that long Kong's share of imports having risen to over 54 per cent in 1968, there is a case for conceding restraints at the present level.

KNITWEAR

Industries 1 argue that the statistics demonstrate that changes in production and imports reflect competition between different fibros, due to fashion changes and that Swedens consumption has in any case fallen. CRE 1 considers that the rapid growth of Hong Kong's exports in 1968 justify restraint at that level.

WOMEN'S UNDERWEAR

The Swedish figures appear to demonstrate injury but it is not clear what the trade consists of and whether the production and import figures are really comparable since many different garments are included within the heading. It is argued there is little correlation between production and imports. CRE 1 take the view that these uncertainties should be resolved by the Swedes as soon as possible and if they can sort out the figures and demonstrate that the rise in imports from llong Kong has caused a sharp fall in production in 1968 there is a case for restraint at the existing level.

/Blouses

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