0003230
G.F. 323
CONFIDENTIAL
Woven shirts and blouses (Group II)
150. Mr. Ho noted the proposals for restraint on shirts and an E/A scheme for blouses. He argued that there was no case for any of these proposals, however, as Hong Kong's performance had been declining.
Woven slacks (Group III)
151.
Mr. Ho observed that Swedish production as well as exports had increased substantially whereas Hong Kong's performance had been static compared with the considerable increase in imports from other suppliers. There was no case for restraint or even an E/A scheme.
Towels (Group IV)
152.
Mr. Ho remarked that Hong Kong's performance had been declining. He took note, however, of Baron de Geer's statement that towels had provoked a crisis with Yugoslavia resulting in Sweden's imposition of import res- trictions. He thought that in the circumstances, an E/A scheme might be appropriate.
Woven anoraks (Group V)
153.
Mr. Ho observed that there was no case for restraint or an E/A scheme as Hong Kong's performance had declined sharply by the end of 1969.
Woven coats (Group VI)
154.
Mr. Ho took note of the proposed liberalisation of this item.
Bed linen (Group VII)
155. Mr. Ho argued that there was no case for an E/A scheme as Swedish imports had been static and Hong Kong's performance declining.
Woven nightgarments (Group VIII)
156. Mr. Ho argued that the extension of the E/A system to this item was hardly justified in the light of Hong Kong's declining performance. He added that an E/A system might provoke speculation of impending res- traint and lead to speculative exports from Hong Kong.
Non-Cotton Items
Knitwear (Group A)
157.
Mr. Ho noted the request for restraint and roll-in with Group E and admitted that there was a possible case for restraint here.
Anoraks (Group B)
158.
Mr. Ho remarked that Swedish production and exports were rising significantly; total imports in 1969 increased by 50% over 1968 and yet imports from Hong Kong had been static. He argued therefore that there was no apparent justification for restraint; but if it were to be conceded, Hong Kong would expect equity of treatment with other suppliers on the question of restraint limits.
Woven dress shirts (Group C)
159.
Mr. Ho observed that production and Swedish exports were rising and, therefore, restraint was not warranted. Baron de Geer reiterated his earlier remarks on the strategic defence requirement of minimum production capacity of 5 million shirts in the event of isolation caused by war. Mr. Ho noted this and said that since 1969 imports from Hong Kong had reached 1.2 million pieces while Swedish production continued to expand, restraint could only be considered if very substantial growth was offered. In addition, if non-dress shirts were to be included, due allowance would have to be made in calculating the overall limit.
/Knitted undergarment...
CONFIDENTIAL
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