0003230
G.F. 323
2
CONFIDENTIAL
15
outstanding quantities for the period 23rd June 1969 to 18th April 1970 (the date of suspension of issue of E/A) amounted to 447, marginally exceeding the 1969 figure.
74.
Referring to Hong Kong's fortnightly returns on export authorisation shipments, Baron de Geer said that the return ending 31st March indicated a total quantity of 406; compared with the figure for the period ending 18th April, this indicated an increase of 41 in two weeks. This worked out to a monthly rate of 80. Since the agreement had another three months to run, he estimated that the notional annual export figure (that is to say, had the issue of export authorisations not been suspended) would be in the region of 700. Mr. Ho expressed the opinion that it was not likely that exports would have been able to maintain this rate of increase.
Sweaters, pullovers, etc. of wool
and discontinuous synthetic fibres
75.
Referring to sweaters, jumpers, etc. of wool and discontinuous synthetic fibres as a group, Baron de Geer said that there had been a drop in the production of all three items (i.e. Group. 1 Item 1 wool m. & b., w. & g.; Group 1 Item 2 discontinuous synthetic w. & g.; and E/A Item 2 discontinuous synthetic m. & b.). He referred to the earlier figures quoted by Mr. Strandberg for 'spun yarn' production which also included cotton sweaters. He commented that a fairly steady trend was discernible from these figures in that there had been a decrease in production with a corresponding increase in imports from Hong Kong. He contended that there was a case of market disruption.
76.
In clarification of the 'spun yarn' statistics, Mr. Henriksson stated that these statistics included all discontinuous textile fibres including wool, wool substitutes and cotton and cotton substitutes.
77.
Mr. Ho pointed out that the combined statistics quoted by Mr. Strandberg also included continuous synthetic fibre. But garments of continuous fibres, namely the nylon silk type, differed substantially from those of discontinuous fibres, namely the wool type garments and should be excluded from any grouping.
78.
Mr. Dorward commented that perhaps different industries were involved because knitted cotton type garments were substantially different from woollen knitwear. In reply, Mr. Strandberg said that the same factories were involved as garments were made on the same machines provided they were using the same gauge of yarn. Messrs. Tien and Cheong said that as far as the Hong Kong industry was concerned, the type of machines employed could not switch from cotton to wool. Mr. Ho suggested that in any case there were different markets created by the different items even though they might be made on the same machines.
79.
Mr. Ho summarized and Baron de Geer agreed that the Swedish delegation wanted to establish that sweaters etc. of wool and discontinuous synthetic fibres ought to be looked at together.
80.
Referring to sweaters of discontinuous synthetic fibres, men's and boys', Baron de Geer observed, that the increases in imports from Hong Kong in 1969 were equivalent to the entire Swedish production. He was alarmed at the rapid increase particularly during the last two weeks. Mr. Ho took note of the Swedish delegation's
concern.
CONFIDENTIAL
/Anoraks
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