0003230 G.F. 323
CONFIDENTIAL
16 -
Anoraks and similar jackets, not knitted or crocheted, wholly or mainly of continuous or discontinuous synthetic fibres, men's and boys' (ex 841.713) and women's and girls' (ex 841.751) wear
81.
Mr. Bernunger observed that whilst imports from Hong Kong had decreased slightly, Hong Kong was still the main supplier. Swedish production had increased slightly and the industry was keen to maintain the present production level. In reply to Mr. Ho, Baron de Geer said that only South Korea was under quantitative restraint, Portugal and Macao, which also had significant shares of the market, were not yet under any form of restriction. Sweden intended to discuss with the Portuguese the problem of imports from Macao during the course of the forthcoming Sweden/Portugal negotiations which he had mentioned earlier.
82.
Mr. Ho noted the 100% increase in imports from Finland in 1969 and the four-fold increase since 1967.
83.
In response to Mr. Ho's request, Mr. Bernunger undertook to obtain average export prices of Swedish anoraks and jackets.
84.
Mr. Ho suggested that competition with Swedish production probably came from high-priced imports from say, Finland. There were obviously two different markets, one for high quality items and the other related to cheaper priced items. He said that Hong Kong had probably generated a new demand. Baron de Geer disputed this. He said that Hong Kong was not supplying a new market: it was simply forcing a change in demand into the cheaper range.
85.
Mr. Ho said that he could not accept this point of view since Swedish exports had increased and Finnish imports had also increased.
86.
Baron de Geer said that it might be necessary to look concurrently at the figures for cotton anoraks, the total amount of which under export authorisation up to 18th April already came to 213. He pointed out that anoraks were anoraks whether they were of 100% cotton or 51/49 cotton/m.m.f. blends. Mr. Bernunger said that imports of cotton and synthetic fibre anoraks from South Korea amounted to 152 in 1969, with an average price of 11.28 which was cheaper than that of Hong Kong's. They were subject to a joint restraint limit for the cotton and non-cotton type because regardless of fibre or unit price, these garments constituted one market and the Swedish industry was facing serious difficulty in maintaining its market share.
87.
Mr. Tien said that it was not possible to compare prices because the fibre construction of the garments varied and so, too, must the price.
88.
Mr. Tien confirmed that anoraks and jackets made in Hong Kong were of light material construction and were mostly worn during summer. Summarising the position on the types of garments involved, Mr. Ho contrasted this style of anoraks with those manufactured in Finland and Sweden which were of heavy, weight, lined and suitable for skiing. In response to Mr. Ho's request, Mr. Bernunger promised to try to find out the proportion of Swedish prodüction in ski jackets and other types of anoraks.
189.
CONFIDENTIAL
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