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Sweden had restrained exports from all her low cost suppliers with
the exception of Hong Kong. The Swedish case on shirts was based
on "cut-and-sew" shirts.
Mr. Stewart said that Industries I considered this was a case
where injury to domestic producers existed. Imports had nearly
doubled and there was a big drop in production.
the Swedes should take action under Article XIX.
He thought that
The U.K. might
also do this as a result and then there might be some international
discipline.
Mr. Hughes asked what would happen if the Swedes would not agree
to take such action, and Mr. Jordan pointed out that they had
already taken most of the action necessary.
The only action
outstanding was to agree a restraint on synthetic woven shirts
A
with Hong Kong. Cotton shirts from Hong Kong were already under
restraint in accordance with the LTA. Also the Swedes had recently
reached a restraint agreement with Yugoslavia on synthetic knitted
continuous shirts. Mr. Jupp said he thought it might be necessary
to seek guidance from Ministers in this matter and to ask Mr. Jordan
to refuse this request.
Mr. Hushes asked if it were true to say that the only reason for
the objection to Hong Kong conceding the restraints on shirts was
that it would create a very difficult situation with the U.K.
textile industry. One of the difficulties here was, of course,
that Swedish production of woven continuous synthetic shirts was
rising. Mr. Jupp pointed out that Swedish imports were rising
even faster.
Mr. Hughes said the position appeared to be that Industries I
wanted the Swedes to take action under Article XIX. They did not
particularly want to do the same (i.e, restrict imports into the
U.K.) but to stop increased pressure on them to impose such
restrictions, they wanted Hong Kong to refuse to concede the
/restraint
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