TNAG-0165-FCO40-201-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 43

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1968, which were 1,067 and 888 tons respectively. He contended that in spite of the increase in production of bed linen from 4,194 in 1967 to 4,617 in 1968, the whole industry was suffering because of the sharper decline in the production of fabrics, coupled with the increase in imports. He remarked that imports of bed linen from Yugoslavia, which was the first supplier in 1968 with 371 tons, had already been restricted. He expressed his concern over imports from Hong Kong, which held the tenth position by quantity in 1967 but became fourth supplier in 1968. Because of overseas competition, two of the largest factories accounting for 85% of Swedish production had recently amalgamated.

52.

Mr. Jordan said that he would like to know how production statistics in respect of bed linen and its fabrics were recorded separately, bearing in mind that their production was completed in the same factories. Mr. Strandberg replied that if a factory prcduced fabrics for sale or for export, then such production would be recorded under the heading "fabrics"; if a factory having produced its fabrics transformed them to made-up articles before delivery for sale, then such production would be recorded under the heading "bed linen" only.

53. Mr. Jordan pointed out that the drop in the production of fabrics would only imply that there was a change from delivering fabrics to delivering made-ups, and that some of the productive capacity had been diverted and transferred from the manufacture of fabrics to that of bed linen. After being informed by Mr. Strandberg that the conversion factor for bed linen was approximately 2.5 pieces per ton, Mr. Jordan went on to say that by applying the conversion factor the production of bed linen in terms of tons in 1967 would be about 1,677 and that in 1968, about 1,847. This meant, he contended, that total production in 1967 of bed linen and fabrics taken together was about 3,874 tons against 4,035 tons in 1968 - an increase of 161 tons. Therefore, there was no market disruption.

54. Mr. Strandberg reiterated that imports of bed linen from Hong Kong increased very considerably during the latter half of 1968. He added that there had recently been a change in demand from the traditional type of bed sheets to the blanket-cover type; this led to increased demand for building up stock, resulting in a significant influx of imports, especially during the latter half of 1968, when even increased domestic production could not cope with this change.

55. Mr. Ho commented that the increase in imports from Hong Kong was obviously attributable to the fact that Swedish production could not keep up with increased demand at the end of 1968. By early 1969 imports from Hong Kong had already slowed down, as illustrated by the January February figures of 1968 and 1969. Mr. Jordan added that whenever there was a sudden change in fashion, with which domestic production found it difficult to cope with in the short run, it was only logical for imports to fill the gap in the first instance. At any rate, he emphasised that market disruption could not be attributable to imports from Hong Kong.

/Fourth Session

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