COTTON MILL HALT “DISCOURAGING”

Press, Volume CI, Issue 29728, 23 January 1962, Page 17

COTTON MILL HALT “DISCOURAGING”

(Special Correspondent N.Z.P.A.)

LONDON, January 21 Abandonment of the halfcompleted cotton mill at Nelson will discourage manufacturers of other products whom New Zealand might possibly wish to attract by similar inducements, says the weekly journal “The Economist.” The opposition of retailers and farming groups, joined by Japan whose claim to consideration is not negligible, forced the issue. Smith and Nephew could not accept modification of the original agreement and a settlement had been reached after six weeks discussion. “Setting up abroad is a useful- outlet for cotton groups that can find capital,” “The Economist” continues. "Many countries are estab-

lishing cotton mills and raising tariffs to protect them South Africa, tor instance, seems bent on replacing imports of most cotton manufactures Irk the British "Such policies irk the British cotton industry threatened b. increasing competition in its home larket but if they cannot be avoided, manufacturing abroad appears the logical step. “Last month English Sewing Thread was associated with a cotton manufacturing project in Northern Nigeria and Calico Printers agreed to participate in a £5.000,000 mill in Eastern Nigeria.” Prospects B or Ampol Ampol Petroleum, Ltd., had increased its share of the market over 25 years and increased competition from the new overseas companies would be a new challenge to marketing efficiency. the chairman, Mr L. J. Thompson, told tihe annual meeting. Consumption of petroleum products w r as progressively" increasing in Australia with greater usage and larger population. . Directors’ policy was diversification of interests and in a few years’ time the company should be receiving revenue from its 25 per cent, interest in the lubricating oil refinery. Mr Thompeon Mid.*