TNAG-0165-FCO40-201-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 189

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3. Our comments on the proposed negotiating instruc-

1

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tions itemized in para 5 of your telegram No. 446 are:

(A) Knitwear

We note that Swedish production has declined to a

level of 1/7th of imports of which Hong Kong has the

major share. Production of women's and girls discon-

tinuous synthetic, has fallen sharply 1967/68 and so

have imports but this seems to be due to Korean

restraint with Hong Kong's share increasing.

that this makes a case for restraint but not at reduced

level proposed by Swedes. We think you should not

We agree

settle below 2,200, claiming growth and the higher level

WOOL for men's and boys' ware proposed in your telegram 339.

(B) Anoraks

5.

After rapid increases in 1965067 production slipped 1965 67 production slipped

a little in 1968 while imports rose by some 40% (Hong

Kong's by some 30%). This was never a strong case for

restraint, since production increases belied injury from

increasing imports. But in the light of the 1968 figures

we agree that continued restraint can hardly be denied.

However we were concerned as you know at the sharply

reduced level you appeared to be contemplating.

We see

no justification for accepting a restraint level below

the existing 785,000 plus appropriate addition for growth

and women's and girls' discontinuous not previously

restrained.

(C) Underwear

6. With the coverage uncertainties referred to above

we cannot comment except to say that only if the Swedes

can demonstrate that the figures for production and

imports are comparable so that the picture was clearly

one of a heavy fall in production and a very large rise

could we in imports, as on the face of it, is the case,

agree restraint.

1946) Dư 392077 300m 10/68 GWBLtd. Gp.863

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