TNAG-0165-FCO40-201-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 54

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Mr. Jordan replied that there would be no problem in using weight as the unit, but it was difficult for him to agree to restrict either bed linen or towels. As there was no dominant single supplier for bed linen, restriction of Hong Kong's or Yugoslavia's imports was unlikely to benefit the Swedish industry, but would rather result in diversion of trade to other suppliers. Moreover, the price of Hong Kong bed linen rose from 1967 to 1968, and was higher than many others. It was unlikely that Hong kong could dominate in bed linen. He could only concede an export authorisation system for bed linen. Mr. Jordan further added that he would wish Swedish statistics to adopt comparable units of measurement for fabrics and made-ups for any future consultations. Baron de Geer promised to look into that

possibility, and noted the E/A offer.

Other Made-up Cotton Articles Table 2 (Towels)

88.

Mr. Jordan said he did not see a case for restraint here because there were so many exporting countries, and no one supplier dominated the market. Hong Kong and Yugoslavia together took less than one third of total imports. Even if Hong Kong exports were restricted, imports would still be higher than production, and the ̈ trade would go to some other countries. It was unlikely that the Swedish industry would return to the 1965 level of production of towel fabrics. If supply from low cost countries should be restricted, then some other suppliers and not Hong Kong should be restricted as Hong Kong's prices were certainly not among the lowest, although the average price per ton need not be indicative of comparable price because there were so many types and sizes of towels.

Furthermore,

In any

even if there were disruption caused by Hong Kong imports, it would not be possible to ascertain at the moment the sort of towel imports which brought difficulty to the Swedish industry for want of statistical breakdown. He could only envisage an export authorisation system for towels. Baron de Geer felt that Hong Kong and Yugoslavia were the dominant low cost suppliers and Yugoslavia was already restricted. Moreover, other principal low cost suppliers, China, Hungary, East Germany, Czechoslovakia, and U.S.S.R. were also subject to limitations. There might also be restrictions on South Korea too, while imports from Portugal were down, and Pakistan's share was negligible. case, he continued, Hong Kong should have nothing to worry about since the proposed limit was 251 tons, which was above the 1968 import figure. Mr. Jordan said Hong Kong was concerned with the fact that Article 3 of the Cotton Textiles Arrangement should not be applied unless damage to the importing country's industry was substantiated. So far which sector of the towel industry had suffered was yet unestablished because of inadequate information. Baron de Geer felt that as Hong Kong and Yugoslavia had the highest percentage increases of the 1968 imports, and as they were also the two principal suppliers, they were the causes of disruption.

Non-Cotton Garments Table 1 (Undergarments)

89.

In reply to Mr. Jordan's question, Mr. Henriksson explained that technically undergarments included shirts, night garments, garments worn under shirts or blouses, garments worn under trousers or shirts, and other kinds of underwear, but did not include brassieres and the like. "Panty-nylons" (tights) were excluded. He could not tell, however, the percentage of underwear which were worn under trousers, and which were worn under shirts. Mr. Jordan said as he had pointed out at earlier sessions, the position was confusing, and while he could agree to the extension of the current

/export.....

CONFIDENTIAL