0003230
G.F. 323
CONFIDENTIAL
- 11
protect the living standard of the Swedish textile workers. He also referred to the imbalance in two-way trade between Sweden and Hong Kong, stating that imports from Hong Kong increased rapidly from Kr. 159 million in 1968 to Kr. 202 million in 1969, of which garments accounted for Kr. 115 million and Kr. 151 million respectively;
on
the other hand, Swedish exports to Hong Kong in the same years amounted to only Kr. 26 million and Kr. 42 million respectively. These figures showed that Sweden was basically not a protectionist country. But clearly, a less liberal attitude was necessary where the existence of the domestic industry was at stake.
53.
Mr. Ho replied that trading communities like Sweden and Hong Kong could not afford to take a rigid bilateral view of trade. balances; but if the Swedes insisted on comparing such figures they should also take into account their very substantial Swedish earnings in Hong Kong from invisibles, notably shipping. Hong Kong conducted its trade in accordance with the provisions of the G.A.T.T. and maintained no restrictions on imports. In return, Hong Kong expected not to be discriminated against in the Swedish market.
Woven cotton anoraks and similar jackets (ex 841.111 and ex 841.149)
54.
Mr. Bernunger observed that Swedish production had declined considerably whereas imports were on the increase. The figures provided by the Swedish authorities showed that imports from Hong Kong continued to decline in 1969 (77) compared with 1968 (137); but this was mis- leading because figures for the nine-month period beginning 1st July 1969 showed imports of 220 pieces.
55.
Mr. Ho admitted that the bulk of the shipments from Hong Kong were in the last five months ending 31st March 1970, and observed that according to Hong Kong's licensing records as at 15th April, 1970, the shipment figure stood at 213. However, in spite of this, it was clear from the Swedish statistics that Hong Kong was no longer the major supplier. Answering Mr. Ho, Baron de Geer said that imports from South Korea were under restraint with a single limit for cottons and non-cottons, and that a request for restraint had been delivered to Portugal, the principal supplier.
Woven cotton coats (ex 841.111)
56.
Mr. Bernunger remarked that Swedish production had been declining, as had total imports and those from Hong Kong. Mr. Ho commented that the low-cost supplier was Italy and there was clearly no case for restraint by Hong Kong.
Woven cotton nightgarments (841.170 and 841.186)
57.
Mr. Bernunger observed that Swedish production had declined sharply whereas imports from Hong Kong had been increasing following the removal of restraint in 1969.
58.
Mr. Ho commented that according to Hong Kong's records, exports licensed from 1st May 1969 to 31st March 1970 were only 503 as against a sub-limit of 850 imposed in 1968/69.
59.
After learning that imports from South Korea, Poland and Czechoslovakia were currently under restraint, Mr. Ho asked if there was any significant switch of demand from woven nightgarments to knitted ones as he had noticed that production of the latter had increased.
/60. Mr. Bernunger...
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