TNAG-0245-FCO40-281-Exports-of-textiles-from-Hong-Kong-to-Sweden-1970 — Page 20

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G.F. 323

CONFIDENTIAL

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Sub-Committee on Conversion Factors

Friday, 29 May 1970 - 4 p.m.

Swedish side

Mr. K. Henriksson

Mr. L.E. Larsson

Mr. Nils G. Revelius

Hong Kong side

Mr. S. Bernunger

Mr. V. Strandberg

Mr. E.P. Ho

Mr. L.M. Souza

Mr. LAM Kun-shing, J.P.

Mr. Frank H. Lin

46.

Mr. Ho explained that the American Agreement with Hong Kong covered all cotton textiles with levels expressed in square yards. He was not certain how these factors had been arrived at, but Hong Kong had accepted the U.S. calculations because obviously there would be traffic both ways. These factors were adopted for agreements with Germany, Norway and to some extent the Benelux countries. Mr. Ho confirmed that in the Norwegian agreement the agreed levels were expressed in pieces, but swing was on the basis of square yard equivalents.

47.

Mr. Bernunger stated that in the Swedish agreement the levels were also expressed in pieces and the Swedish side intended to look at these levels in relation to the U.S. conversion factors. He added there would be less need for swing if quotas were in large groups.

that was

48.

Mr. Ho agreed that it was true to some extent; the reason why Hong Kong had not pressed for swing in earlier negotiations. Since each successive Swedish request covered more items, it was now much more important that swing provisions should be introduced.

49.

Mr. Henriksson stated that they had difficulty in reconciling some of the U.S. factors with their own views on what the conversion rates should be. Mr. Ho said that Hong Kong would be quite happy to consider any Swedish alternatives.

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