0003230
G.F. 323
CONFIDENTIAL
20 -
75.
Mr. Ho commenting on the proposed combined anoraks level, stated that, for a change, he found the Swedish offer acceptable.
76.
After expressing some disappointment with the Swedish offer of 2,700 for sweaters of wool and of discontinuous synthetic fibres, Mr. Ho said he would reluctantly accept that figure.
77.
Reverting to Baron de Geer's remarks on the Swedish industry's difficulty of equating underpants to other items, Mr. Ho enquired whether there could not be swing limited to the remaining items. Bron de Geer stated that this was not possible as the difficulties confronting them were considerable. He regretted that he was unable to accommodate Hong Kong at the present time but promised that he would continue his consultations within the Swedish Government and with their industry. He would inform Hong Kong of their ultimate conclusions either through the British Embassy or the Consul General in Hong Kong in due course.
78.
Mr. McEnery stated that in the United Kingdom experience, swing was definitely advantageous to the importing country as well. Due to fashion changes there were difficulties in fulfilling quotas and this resulted in a tendency to dumping. In such a situation exporters would try to fulfil their quotas by shipping into a declining market which must bear the increased imports. On the other hand with swing, the trade could move into a more firm sector and exporters could then fulfil their quotas by shipping into a sector, which due to fashion demands, were capable of absorbing the increased imports.
CONFIDENTIAL
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