BRITISH MARKET

Stratford Evening Post, Volume II, Issue 177, 22 February 1933, Page 5

BRITISH MARKET

Sympathy Alienated from New Zealand BUSINESS MEN'S REPLY TO MR. COATES Wellington, Today.—A reply sent by the Business Men's Committee to Mr. Coates today says that they have already directed attention to the fact that exchange depreciation is very liable to affect the market for the country's exports, and this is- particularly likely to happen, • they think, in the case of a country such as this whose only important market is at present glutted. When sellers are In a weak post tion and buyers in a strong one, there is a tendency for any export bounty to pass to the buyers in reduced sale value J.

Tliey do not suppose it will be contested that the exchange depreciation policy is not only to give a bounty to exporters, but also to impose a serious handicap on British manufacturers exporting to New Zealand.

It seems only natural that British tanners should resent dumping on the home market of bounty fed dairy produce at less than the cost of production. The fact of. exchange depreciation in reducing British exports will at some time deprive us of the sympathy of British industrialists, and incline them to less sympathetic consideration to demands of their own farmers and it is only natural that such a situation should be created. It was clearly foreseen and publicly expressed by the committee on a previous occasion, and they think a serious load of responsibility on the shoulders of the Government for bringing about such a situation, in which the sympathies of the British market, both import and export, are being so disastrously alienated. In these circumstances the committee resent imputation that they are doing a poor service to New Zealand. They consider in fighting this issue they are acting in the interests of the country and endeavouring to counterbalance what they think a wrong method of assisting the primary producer,