TNAG-0245-FCO40-281-Exports-of-textiles-from-Hong-Kong-to-Sweden-1970 — Page 18

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G.F. 323

CONFIDENTIAL

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Third Plenary Session Friday, 29 May 1970

11.30 a.m.

37.

Baron de Geer stated that in the short time available for consultations with their industrial advisers and within the Government he regretted that he was not in a position to react fully to the Hong Kong proposals made at the previous session. He summarised the position as seen from his side as follows

(a)

(b)

(c)

(a)

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the proposal of a combined quota for woven shirts had raised issues which required wider consultations and on that he regretted that no reply could be given at the present session. Mr. Ho stated that by reference to the Swedish arguments over the last three years on a one market concept, and their offers of joint cotton and non-cotton quotas made as recently as April during the consultations in Hong Kong, it was difficult to understand the delay on this issue. Baron de Geer replied that there was some merit in the new proposals, but Swedish reaction would have to wait until Monday afternoon;

on sweaters Baron de Geer stated that he was now in a position to offer 3% growth;

on underpants he was prepared to go along with a combined quota for underpants of cotton for men and boys and underpants

of continuous synthetic or artificial fibres for men and boys and women and girls;

on the question of a combined quota for knitted shirts of cotton and of synthetic fibres and knitted sweaters of cotton and of continuous synthetic fibres, any decision would also have to be deferred until Monday afternoon;

(e) on slacks, jeans and trousers, Baron de Geer stated that he

was prepared to accept a combined E/A scheme;

(f)

38.

on swing Baron de Geer stated that there were some difficulties over the acceptance of the U.S. conversion factors. As the afternoon was now available, he suggested that a sub-committee meeting be convened in the afternoon to consider this matter in greater detail. Mr. Ho agreed.

Mr. Ho then referred to the following items which had so far not been covered and sought clarification as to whether the Swedish side also proposed

(a) a combined quota for anoraks of cotton and synthetic fibres;

(b)

an Export Authorisation scheme for woven nightgarments, m. & b.,

W.

& g. i

(c) in respect of undergarments restraint would be on underpants

only; the rest of the statistical position, including women's and girls' underpants of cotton, would be subject to an export authorisation scheme.

39.

Baron de Geer confirmed the above and then went on to ask how the levels were to be established in the event shirts were grouped together. Mr. Ho replied that the normal provisions of the Cotton Textiles Arrangement which provided for orderly expansion of trade would be appropriate: one would have to look at the access rights of unrestrained trade and the present levels for existing restraints plus growth. Mr. Ho also reminded Baron de Geer that during the

/consultations

CONFIDENTIAL