TNAG-0245-FCO40-281-Exports-of-textiles-from-Hong-Kong-to-Sweden-1970 — Page 77

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39.

There being no further remarks in respect of the above,

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the discussions went on to the other items.

Woven cotton blouses, not embroidered (841.137)

40.

Mr. Ho observed that Swedish production figures for 1967 and 1968 were 639 and 646 respectively; these figures were, however, at variance with those supplied by the Swedish authorities in 1969, which were 534 and 545 respectively. Mr. Bernunger thought that there had been some revision of the statistics, but he was unable to give any other explanation. The later figures were correct.

41.

Mr. Bernunger remarked that both Swedish production and

imports from Hong Kong declined significantly in 1969. have been caused by a pronounced switch of demand from cotton blouses to those of synthetic fibres. Mr. Ho commented that Swedish exports accounted for about 25% of production and it appeared that Swedish industry was concentrated on the production of high quality blouses which were not in direct competition with the more standard types. imported from Hong Kong. He agreed that there seemed to have been a change in demand from cotton to synthetic fibres. There was no case to claim damage due to imports of cotton blouses from Hong Kong. Mr. Bernunger replied that the Swedish industry was concentrated mainly in the higher quality end of the market but it also produced cheaper quality blouses which competed with Hong Kong. He contended that the industry had to be looked at as a whole. Total production had been declining. Answer- ing Mr. Ho, Baron de Geer said there were no restrictions on G.A.T.T. suppliers other than Hong Kong: this was because Hong Kong was the only major supplier, accounting for over 50% of total imports in 1968.

42.

Mr. Ho observed that according to Hong Kong's records, total exports licensed in the current restraint period up to 31st March 1970 were only 50 compared with the notional annual limit of 350. Mr. Tien added that imports from Hong Kong were decreasing whereas those from other suppliers, notably India, and Portugal, were increasing.

Woven cotton shirts (841:161 and 841.163)

43.

Mr. Bernunger observed that the demand for cotton was decreasing in favour of synthetic blends and this was reflected in import and production statistics. Total production of all shirts was decreasing with a 10% drop in 1969 over 1968. But total imports during the same period had increased by 30%, and those from Hong Kong by 20%.

444

Mr. Ho remarked that as far as cotton shirts were concerned, Swedish production had levelled off; exports increased considerably, but imports from Hong Kong had consistently been falling since 1967. Additionally, Hong Kong licensing statistics showed exports on only 629 in the current restraint period up to 31st March 1970 compared with the annual notional limit of 1,160 for shipment before 30th June. Meanwhile, imports from other suppliers had continued to increase. He noted the 20% increase in imports from Portugal and enquired how this could happen when these shirts were supposedly under restraint.

45.

Mr. Bernunger replied that most of the shirts coming from Portugal were by and large re-exported, which implied that the actual quantity retained in the Swedish market was much lower than that registered. Answering Mr. Ho, Baron de Geer said that all imports from Portugal were caught by the arrangements, including those sub- sequently re-exported from Sweden. The Portuguese quota was 1,400 and it had never been fully utilized. Baron de Geer said some shirts

/underwent

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