0003230
G.F. 323
1
CONFIDENTIAL
- 5 -
19.
Baron de Geer took up the question of prices of shirts imported from Finland. These shirts, he said, were commissioned to be made up in Finland from fabric cut and supplied by Swedish firms. The unit price listed in the table represented only the value added in Finland.
20.
Mr. Ho produced an actual sample of a knitted shirt of the kind exported to Sweden by Hong Kong under quota. Mr. Bernunger confirmed that this was not the same style of shirt now being mainly produced by the Swedish industry: hc estimated that production of the cut and sewn knitted shirts in 1969 was 344 and for the other type, 37. Mr. Ho observed that in the circumstances Hong Kong could not be damaging the Swedish industry as each produced different kinds of shirts. In the ensuing discussion it was also confirmed that Swedish Customs classified roll-neck knitted shirts as sweaters.
Nightgarments, knitted or crocheted, cotton not elastic nor rubberised, men's and boys' (841.445), women's and girls' (841.448)
21.
Mr. Strandberg remarked that he had to qualify the statistics provided on this item.
A new type of garment made of stretch nylon and cotton pile fabric, to be worn either as nightgarment or beach suit, had come into fashion. This was classified under the statistical heading for nightgarments and was responsible for about 40% of all Swedish nightgarment production.
22.
Mr. Ho commented that this new development was an encourag- ing sign as it indicated that the Swedish industry had broken new ground in manufacturing in response to market demand and Hong Kong was not able to catch up in this regard. Imports from Hong Kong had in fact begun to decline. This was borne out by the fact that for the 12-month period ending April, 1969, Hong Kong's export to Sweden in this item was 280; the corresponding figure for the year ending March, 1970 had dropped to 200.
Cotton undergarments, knitted or crocheted, not elastic nor rubberised, men's and boys'
(841.439) women's and girls' (841.442)
wear other than shirts, nightgarments, 'tights'
1
and panty nylons'
23.
Mr. Strandberg reported that there was an increase of production in undergarments from 11,000 in 1968 to 13,000 in 1969, and consumption had also increased by 4,000. Part of the increase in production was due to anew arrangement whereby a firm had started manufacturing undergarments for hospitals on a laundry service bašis. He conceded that such garments were consumable and the demand would therefore be sustained.
24.
Mr. Ho observed that there was significant export per- formance by E.F.T.A. countries, Denmark, Portugal, the U.K. and Finland. It was also interesting to note that the average price of Hong Kong undergarments at 1.34 SW. Crs. was above that of Denmark at 1.32. Mr. Ho tabled the following statistics which showed that Hong Kong's exports of this item to Sweden were declining:-
January
February
March
1969
1970
228
170
190
51
153
47
/Baron de Geer
CONFIDENTIAL
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