0003230
G.F. 323
CONFIDENTIAL
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133.
In reply to Mr. Ho, r. Henriksson said that machine knitted blouses might be included in the 'other' knitted outergarment sector, but he was unable to supply production figures.
134.
Turning to the now items of non-cotton textilos, Mr. Ho said that the late supply of relevant statistics had caused Hong Kong considerable difficulty in examining this information in detail.
Shirts, knitted or crocheted, wholly or mainly of synthetic fibres 841 832)
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135. Mr. Bernunger stated that knitted shirts of synthetic fibre were relatively new products of the Swedish textile industry. There had been a severe drop in production in 1969, but imports including imports from Hong Kong had increased. Mr. Dorward pointed out that although the basic material was similar, Nr. Rernunger had indicated at the First Session that the Swedish industry was concentrating on shirts cut and sem from knitted fabrics; while imports from Hong Kong were mainly machine knitted shirts. The former were mainly dress shirts while the latter were inevitably leisure shirts. Mr. Ho said damage could not have been caused, therefore, whon Hong Kong was not exporting the items produced in Sweden. r. Strandberg contended, however, that Swedish statistics did not distinguish between machine knitted and cut-and- sewn, and factories manufacturing cut-and-sewn shirts were also manufacturing machine knitted shirts. Thus, Hong Kong's imports were competing with the industry. Mr. Ho noted that Hong Kong was actually the sixth amongst the exporting countries, of which Italy and Portugal were by far the major suppliers. Furthermore, Hong Kong's shirts were more expensive than the rest, not to mention the high tariff barrier Fong Kong had to cross compared with E.F.T.A. suppliers.
Undergarments, other than shirts, night garments, 'tights' and 'panty nylons' knitted or crocheted, not elastic or rubberised, wholly or mainly of continuous man-made fibres, men's and boys' wear (841 841).
2.
136. Baron de Ceer said that for undergarments there was a clear case of market disruption. Supply increased to 1,941 in 1969, of which Sweden was only able to take a share of 587. Total imports increased by 267; imports from Hong Kong at 462, represented a 500 increase over 1968 and 78% of Swedish production. Mr. Ho, conceding that Swedish production was steady, pointed out that Finland, not Hong Kong, was the leading supplier. Baron de Geer replied that Hong Kong's price was only half of Finland's; further-
Mr. Tien more, imports from inland had declined from 587 to 540. noted that imports from other countries had decreased which tended to su gest that Tong ong's gain was at the expense of those countries and not of Sweden. Mr. Ho noted that Portugal's
If percentage increase was even greater than Hong Kong's. restraint on Hong Kong exports served only to give roon to other importing countries, the original intention of restraint was defcated. In reply, Baron de eer said that imports from Hong Kong in the first two months of 1970 (176) increased sharply compared to those of the corresponding period in 1969 (62). Ho asked if Fong Kong export figures for 1970 were available to see if the trend was continuing. r. To said that due to the late submission of the Swedish request it had not been possible to complete compilation of recent figures.
CONFIDENTIAL
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