TNAG-0245-FCO40-281-Exports-of-textiles-from-Hong-Kong-to-Sweden-1970 — Page 99

0003230

G.F. 323

CONFIDENTIAL

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Knitted undergarments (Group D)

160.

Mr. Ho commented that because of the varied nature of the item, the Swedish case had been imprecisely made. Nevertheless, he admitted that there might be a case for Hong Kong to restrain panties and the like.

Synthetic sweaters for men (Group E)

161.

See Group A above.

Woven blouses (Group F)

162.

Mr. Ho commented that Swedish exports and production were both rising and argued that there was no case for restraint.

Knitted synthetic shirts (New Item 1)

163.

Mr. Ho pointed out the considerable increase in imports from Italy, the major supplier, and observed that Hong Kong was an insignificant supplier. He argued that the Swedish case was based on retaining expansion opportunities for their industry in the new field of shirts cut and sewn from knitted fabrics. There was no justification for this approach and so no case of injury could be made.

164.

Baron de Geer contended that his Government had been facing considerable pressure, particularly from trade unions, to take action against imports that might cause injury to the domestic industry, and that actions against Yugoslavia had been a direct outcome of this unabated pre- ssure. He also referred to the political situation related to this issue in the light of the elections due in September 1970. Mr. Ho reiterated that it was Hong Kong's accepted policy to consult readily with trading partners with regard to a problem of market disruption caused by imports; however he failed to see how imports of knitted synthetic shirts from Hong Kong, which accounted for less than 10% of total imports in 1969, could be causing any difficulty to the domestic industry.

Knitted undergarments of continuous m.m.f. (New Itom 2)

165.

Mr. Ho again observed that there was no case for restraint: production was steady; total imports were increasing, and Hong Kong was not the major supplier.

Knitted sweaters, of continuous synthetic fibre (New Item 3)

166.

Mr. Ho referred to the two tables supplied by the Swedish Government last year, namely, non-cotton table 2-II dated 12th March 1969 and 2-III dated 14th April 1969, and observed that there were some statis- tical discrepancies compared with the corresponding tables given this year. Nevertheless, the fact remained that Hong Kong was only the fourth supplier and restraint could only benefit the other major suppliers. Furthermore, Swedish exports were larger than imports from Hong Kong and increasing. He therefore considered there was no case for restraint.

Woven slacks of discontinuous synthetic fibres (New Item 4)

167.

Mr. Ho observed that production as well as Swedish exports had increased substantially. In addition, Portugal, as yet unrestrained, was principal supplier by far. He considered there was no case for restraint.

Woven nightgarments.....

CONFIDENTIAL