0003230 G.F. 323
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Baron de Geer rejected this multiple market concept for the same kind of commodity and said that consumers were bound to go for the cheaper product.
14.
Mr. Ho queried the reason for restraining Hong Kong and not Finland. Baron de Geer replied that Sweden would never restrict imports from Finland a Nordek partner. In his view, Sweden and Finland constituted one economic entity and there was even free move- ment of labour between them. On the other hand, Sweden had already agreed restraints on a number of items from Portugal. Mr. Ho said the Nordek Customs Union was not a reality and seemed from recent reports unlikely to become one. He could not accept, therefore, that Finland enjoyed any special status vis-a-vis Sweden other than that. deriving from its E..T.A. association; and as Baron de Geer had said, restraints had been agreed with Portugal despite E.F.T.A. status.
15.
Returning to the question of prices, Mr. Ho reminded the Swedish side that imports from Hong Kong were subject to customs tariff while those from E.F.T.A. countries were duty free, a factor to be borne in mind when comparing f.o.b. unit prices. Any damage done to Swedish industry must be due to the overall volume of imports and not just those from Hong Kong or any particular countries. In reply, Baron de Geer reiterated his earlier statement that Sweden diḍ not object to imports as a whole but only to imports from countries where wage levels were lower than in Sweden.
16.
Mr. Ho then suggested that the meeting should go into Statistical Sub-Committee. He apologised for the absence of Hong Kong's industrial advisers who were unavoidably detained on very important business in connection with a Hong Kong industrial association, but would be able to join the Hong Kong team the next day. He proposed and the Swedish delegation agreed that they should start with cotton knitwear first.
First Session Part 2 (Statistical Sub-Committee)
4 p.m. Monday, 27th April, 1970
Shirts, cotton, knitted or crocheted (841.431)
17.
Mr. Bernunger reported that a new type of knitted cotton shirt had come into fashion in the last two seasons. Production of this shirt had increased although total production for all types of shirts declined by 10% due to a decrease in the production of knitted synthetic fibre shirts. Total imports and imports from Hong Kong had increased. Mr. Ho asked if a fuller description of the shirts recently in fashion could be given. Mr. Bernunger replied that they resembled ordinary dress shirts, but were cut and sewn from a knitted as opposed to woven fabric. Mr. Ho stated that Hong Kong exported mainly machine knitted shirts of the traditional style and not the type described by Mr. Bernunger. Hong Kong could not, therefore, he said to be competing against this particular sector of the Swedish industry.
18.
Mr. Ho pointed out that Swedish production had increased by 150% in 1969 over 1968. Imports from Finland had increased from 13 in 1968 to 354 in 1969; the average unit price was only 5.53 SW.Crs. compared with Hong Kong's6.07. Portugal's exports to Sweden had also increased substantially in 1969. Baron de Geer intervened to say that the increase in production lagged far behind the increase in imports. Mr. Ho said this could surely indicate only that the Swedish industry was unable to meet increased market demand. There could therefore be no case of market disruption by Hong Kong. Answering Mr. Ho, Baron
de Geer stated that there were restraints, either at source or in Sweden, against cotton knitted shirts from Portugal, Yugoslavia, South Korea, China, Japan and all Eastern European Countries; but not India.
/19. Baron de Geer
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