BLOUSES
14.
1.
Industries 1 argue that the trade in synthetic blouses must be considered together with cotton blouses and that increased imports are the result of fashion whereas domestic production has not fallen in 1968. CRE 1 say that as long Kong provide over 20 per cent of the imports there is now a case for restraint at this level although the case would have been stronger a year earlier when most damage to Swedish production occurred.
DRESS SHIRTS
Both production and consumption in Sweden have been rising for synthetic dress shirts and Hong Kong supplies two thirds of the imports. But Industry 1 considers that the rise must be assessed on the shirt market as a whole and not on shirts of only one type. On all knitted and woven shirts Sweden's production has fallen to nearly half in four years and imports have doubled: they consider this is a good injury case under Article XIX. CRE 1 on the other hand feel that with both domestic production and imports of synthetic shirts increasing there is no case for restraint.
COTTON ITEMS
In addition to the negotiations on these non-cotton items Hong Kong and Sweden have been negotiating restraint arrange- ments on cotton textiles on which we have always allowed them a free hand, virtually as independent members of the cotton textiles arrangement. Industries 1 however are concerned that it is proposed to extend restriction to garments on which the case appears to them to be weak and to some garments which are not restrained in our market at all. CRE 1 consider we cannot now instruct Hong Kong to reverse the agreement which she has recently reached with Sweden on these items and that in any case we have no grounds for objection to arrange- ments that are covered by the C.T.A. Fe cannot determine arrangements reached by ilong Kong by reference only to restraints imposed by the U.K.
INSTRUCCIONS TO HONG KONG
(9) Industries 1 argues that Hong Kong should be instruct - od to agree to a pro-rata extension of the existing restraints (covering only two of the headings discussed in the paper) over a period of three months on the grounds that Sweden has not demonstrated any case of injury or threat of injury and that more time is needed to reach agreement on any further arrangements. This space would give us time to see what action the Americans take to protect their market.
(10) CRE 1 consider that it is unrealistic to give such instructions to Hong Kong and that it is not necessary to do
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