HIGH EXCHANGE

King Country Chronicle, Volume XXVIII, Issue 4606, 6 October 1934, Page 5

HIGH EXCHANGE

REFLEX IN BRITAIN. Keen disappointment is expressed by a large British manufacturing company with the attitude of New Zealand in maintaining the present exchange rate New Zealand on London. Not only is this rate regarded as in the form of a duty on British manufactures entering New Zealand, but it is also looked upon as a premium to Australian manufacturers in competition with those of Great Britain in the New Zealand market. This view is expressed in a letter recently received by New Zealand agents of the British firm which wrote, inter alia, as follows: — "It is indeed passing strange that we at Home who are your best customers should have to fight the preferences that are being extended to bur competitors i'n Australia, and you have probably seen the references in the Press to the attitude of the Lancashire cotton spinners and to the suggested boycott of Australian trade, a boycott which I can assure you was quite unsolicited on the part of the cotton spinners but was quite spontaneous as far as the wholesale grocery trade is concerned. "It would be very regrettable if a similar attitude was to arise in connection with imports from New Zealand, but you can regard the present position in Lancashire as being indicative of the feeling that is growing throughout this country, and those of us who have the best interests of New Zealand at heart will be unable to check and combat it o'nce the suggestion of boycott is raised. "Personally, I am very much concerned, because as you know we are losing quite a lot of valuable business to our Australian competitors, and although the business is important from our point of view, the saving that is effected by purchasing in Australia cannot be regarded as sufficient to justify a breach between our two countries."