TNAG-0245-FCO40-281-Exports-of-textiles-from-Hong-Kong-to-Sweden-1970 — Page 13

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also suggested a combined E/A scheme for knitted shirts including cotton and continuous synthetic sweaters. Baron de Geer replied that the Swedish Government could never agree to an E/A scheme for knitted shirts.

Woven Shirts

18.

On woven shirts of discontinuous synthetic fibres Mr. Ho stated that last year Hong Kong had conceded restraint at 625 due to a threat of serious injury. But the Swedish figures for 1969 indicated -

(a) an 80% increase in production;

(b)

a 100% increase in total imports;

(c)

that 1969 imports from Hong Kong having reached 1,159 still did not cause any actual injury: in 1969 Sweden had been able to absorb 1,159 from Hong Kong and yet expand their production in the process.

The present limit therefore did not represent the level beyond which there would be a threat of injury to the Swedish industry. The Swedish offer of 5% growth on the 1969/70 limit was therefore quite out of the question and he would be in considerable difficulties if he accepted the Swedish offer.

Knitted Underwear

19.

Referring to this item, Mr. Ho pointed out that on the cotton side production was up and the allegation of low priced imports from Hong Kong were obviously not sustainable as Denmark's prices were lower than those from Hong Kong. Mr. Henriksson stated that the price quoted for Denmark should have read 1.65. The amended prices, according to Mr. Henriksson, were as follows

Hong Kong

Denmark

m. & b.

W. & g.

1.60

0.89

3.32

1.38

20.

Mr. Ho stated that Swedish production was strong and there was no case for continued restraint especially when the bulk of increased imports had come from E.F.T.A. countries.

Mr. Henriksson then mentioned the innovation of paper undergarments for use in hospitals and Mr. Ho seized on this opportunity to stress that any injury or damage was therefore due to substitution by Swedish paper undergarments.

21.

Mr. Ho went on to say that by reference to Hong Kong export figures exports of undergarments were mainly underpants, briefs, panties and the like,- namely, garments worn between waist and knees. Exports of the other items of undergarments (i.e. vests, slips etc.) were insignificant. Mr. Ho then summarised the Hong Kong position on knitted undergarments as follows

(a) cotton to be liberalised;

(b) continuous, m.m.f. there might be a case for

restraint on briefs, panties and the like only.

CONFIDENTIAL

/Knitted