0003230
G.F. 323
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6.
Baron de Geer conceded that Sweden had a rather weak case on cotton knitted undergarments. Only East Germany, Rumania, Hungary, Czechoslovakia and Japan were restrained in this item.
Sweaters, pullovers etc., knitted or crocheted, cotton, men's and boys' ex 841.461) women's
and girls' (ex 841.464)
25.
Baron de Geer remarked that production in Sweden had declined while imports had increased, with Hong Kong increasing its share of the market. He attributed this to the low price of Hong Kong products. Countries subject to restraint in this item were Hong Kong, Portugal, Czechoslovakia, Poland and East Germany. Mr. Ho observed that Swedish exports of sweaters from 1967 to 1969 had increased steadily and accounted for 40% of production in 1969. This suggested the cotton sweater industry was competitive and directed more at the export than the domestic market.
26.
Baron de Geer insisted however that protection was needed because production had continued to decline since 1968, and the price of Hong Kong sweaters was very low.
Towels (656.919)
27.
In his opening remarks concerning this item, Baron de Geer said that Sweden had recently had discussions with Yugoslovia regard- ing their exports of towels to Sweden. These discussions had, however, broken down and the Swedish Government intended to introduce import quota restrictions to control the trade with effect from 29th April, 1970. Other countries restrained, apart from Yugoslavia, were Hong Kong, China, Czechoslovakia, U.S.S.R., Japan and Hungary.
28.
Mr. Ho pointed out that the overall reduction in imports was 3% but the reduction in imports from Hong Kong was 15%. He noted with regret that, like 1969, there were no comparable import and production figures in the Swedish statistics, the former being expressed in tons and the latter in pieces. It was therefore impossible to gauge if there were damage to the Swedish industry. For example, what was lost in production in terms of pieces might well have been made up by the production of bigger and heavier towels expressed in unit of tons. Mr. Ho also drew attention to the fact that during three quarters of the current restraint period only 68% of Hong Kong's quota was shipped. This indicated that Hong Kong towels were not in strong demand and there was no justification for continuing the restraint on this item.
29.
Baron de Geer argued that restraint was necessary in equity to Yugoslavia. He also stated that the market for towels appeared to be rather stable from year to year and this was a case where the price factor was most important in terms of damage to the home industry. Mr. Dorward interposed to say that to talk of unit prices in this item would be meaningless as there was no way to break down the figures into type's of towels, such as huck cabinet towels, terry plain, terry jacquard, hand towels etc. And furthermore, with different units being used to express production and imports there was in any case no basis for comparison. Baron de Geer replied that the Swedish Delegation had made every effort to produce comparable figures but technical difficulties were encountered. Mr. Ho noted that imports from Italy continued to increase. and that Sweden was not taking any action against them. Hong Kong could not accept that contracting parties to the C.T.A. should be favoured in this way while others, Kong,were discriminated against to the detriment of their trade. the cirsumstances, Mr. Ho stated that Hong Kong reserved its position regarding this item.
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