TNAG-0165-FCO40-201-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 40

0003230

G.F. 323

CONFIDENTIAL

Third Session (Statistical Sub-Committee) 10.00 a.m.. Wednesday, 23rd April 1969

Woven cotton blouses

35. Mr. Bernunger stated that cotton and synthetic fibre blouses were manufactured by the same factories in Sweden. He pointed out that Swedish production of cotton and synthetic fibre blouses taken together declined from 831 in 1967 to 809 in 1968, whereas total imports increased from 969 in 1967 to 1,251 in 1968; imports from Hong Kong also increased during the same period from 597 to 895. Although there was a slight improvement in the production of cotton blouses, imports increased more, while imports from Hong Kong increased substantially. He reiterated that the decline in overall production, coupled with the increase in imports, particularly those from Hong Kong, had become a serious problem to the Swedish industry. That situation was especially unfortunate as Swedish manufacturers had been trying to increase their production of synthetic blouses at the expense of cotton blouses in order to cope with the change in demand.

36.

Mr. Jordan commented that there might be a tendency for a switch of demand from cotton to synthetic fibre blouses as observed by Mr. Bernunger. He also thought it likely that Swedish production of cotton blouses might continue to drop as illustrated by the marked decline from 949 since 1965. However, he pointed out that imports had also levelled off since 1965, and he doubted if restraint on cotton blouses from Hong Kong would help revive Swedish production.

Woven cotton shirts

37.

Mr. Bernunger said that dress shirts of cotton and synthetic fibres were also manufactured in the same factories in Sweden. Total production of those shirts of all fibres had declined from 4,906 in 1967 to 3,725 in 1968 (Non-Cotton Garments Table 5), while total imports increased from 5,945 to 6,423, and imports from Hong Kong increased more substantially from 1,468 to 1,617 pieces respectively, imports from Portugal declined from 1,576 to 1,489. He argued that the obvious difficulty lay in the constant decrease in production and the increase in imports. In polyester/cotton shirts, Swedish production increased from 253 to 400, but imports from Hong Kong, the first supplier, far exceeded those production figures. Furthermore, the net reduction in shirt production posed a serious problem to the whole industry.

38.

Baron de Geer stressed the overall reduction of 25% in shirt production and added that Hong Kong, Portugal, Yugoslavia, Formosa and Rumania were the five major suppliers with only Hong Kong substantially increasing its supply. Woven cotton and synthetic fibre shirts from Yugoslavia and South Korea were already exercising restraint, while Formosa and Rumania were under licensing control; therefore Hong Kong should also be subject to restraint. In reply to

a question, Baron de Geer said that South Korea was restrained on all woven shirts (but not on knit), Portugal on woven cotton only, while Yugoslavia was under restraint on all shirts other than cotton knit.

39.

Mr. Jordan said that while he had no objection to a discussion of the dress shirt industry as a whole, the statistics quoted by Mr. Bernunger also included knitted synthetic shirts which Hong Kong hardly exported to Sweden. It was, therefore, irrelevant to use those figures when attempting to show that market disruption was caused by imports from Hong Kong. He added that the 25% decrease in

/production

CONFIDENTIAL