I have had a couple of readers of "Easy as 1-2-3 Crochet" by DRG publications contact me for clarification of how to work the sleeve ends on the Blue Hawaii Jacket. The photos in the book don't have a great close-up of the sleeve detail, so I figured if there were two people who cared enough out there to email me for clarification, there might be others out there who have perhaps started this project and run up against some confusion while working this part of the jacket/sweater.
As you can see in the picture, it appears as though half a "doily" is attached at the end of the sleeve. the yarn is joined at the center medallion seen at the bottom edge of the picture, worked back and forth, anchoring each row to the end of the sleeve. At one point, the pattern says, "you will now begin working in the round" (I don't remember where, and can't put my hands on the book right now, but the instructions really do say something like that!); at that point you will work in the round, and the lower inside edge of the sleeve with look like this:
Hope that's a little clearer than mud! If you have any questions about any of my published patterns, feel free to email me. I like people to be successful in recreating my designs! Happy hooking!