TNAG-0631-FCO40-779-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 208

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TO ROUTINE DOT TELNO CREDA 74 OF 7 OCTOBER

INFO ROUTINE FCO UKREP BRUSSELS COPENHAGEN INFO SAVING SEOUL.

DIMOND'S LETTER OF 4 OCTOBER TO MRS GINGELL:

PRESSURES IN SWEDEN

PROTECTIONIST

1. IN A STATEMENT OF GOVERNMENT POLICY AT THE OPENING OF THE RIKSDAG ON 4 OCTOBER THE PRIME MINISTER REITERATED SWEDEN'S OPPOSITION TO PROTECTIONISM BUT REFFERED TO A REVIEW BEING MADE OF SWEDISH IMPORT REGULATIONS FOR TEXTILES AND CLOTHING, AS A

SPECIAL CASE.

2. WE HAVE DISCUSSED THIS SUBJECT WITH THE MINISTRY OF COMMERCE

IT (WIIK, HEAD OF THE DEPARTMENT DEALING WITH TEXTILE QUESTIONS). IS CLEAR THAT THERE IS NOW INTENSIVE PRESSURE UPON MINISTERS TO DO SOMETHING TO PROTECT SWEDEN'S TEXTILE AND CLOTHING INDUSTRY. IMPORT PENETRATION HAS REACHED SOME 70 TO 75 PER CENT (WHICH ITSELF POSES A DILEMMA FOR MINISTERO, GIVEN SWEDEN'S NEUTRALITY AND NEED FOR A BASIC CAPACITY FOR ECONOMIC SELF-SUFFICIENCY) MANY SMALLER COMPANIES ARE THREATENED WITH BANKRUPTCY AND LABOUR BEING SHED THROUGHOUT THE INDUSTRY IS HAVING A SERIOUS EFFECT UPON UNEMPLOY- MENT, PARTICULARLY IN THE BORAAS AREA. IN ADDITION TO PRESSURES FROM INDUSTRY, THE PRIME MINISTER RECEIVED ON 5 CCTOBER REPRESENT- ATIONS FROM THE TRADE UNION CONCERNED PRESSING FOR THE. INTRODUCTION

OF A SCHEME OF GENERAL LICENSING.

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