NEW YORK
I only had 24 hours in New York and therefore a very limited programme but it did give me an opportunity to meet members of the British-American Chamber of Commerce and also individuals who are in business in New York including a dinner kindly given for me by the Consul General. Any comments I have to make are, therefore, somewhat superficial but measured against a long experience of visits to New York.
Firstly, I continue to be convinced that the Post in New York does an excellent job in its own right as well as supporting the Consul General well in his responsibility for overall supervision of commercial promotion in the United States. system works well and is effective.
The
I was interested to find that, as in Europe, once charging had become established, there has been an increase in 'chargeable' business. They have excellent relations with ENAB and NAAG, though there is always room for more consultation on such matters as timing of missions etc.
Secondly, concern was expressed in New York and California at the proposed closing down of Food from Britain in USA. seem to think that Tony Matthews has done an excellent job on a limited budget and I will ask my successor, if he agrees, to "make enquiries about this with MAFF.
Thirdly, the British-American Chamber does very well to hold together British business interests in the area as well as being active in its co-ordination of British Chambers throughout the United States. Its President, Peter Felix, is I believe, doing a very good job and has adopted a very sensible attitude in the current problem of forming a European chamber and policy.
Fourthly, I was conscious for the very first time of the serious problem created by the current exchange rate of Sterling against the Dollar. Obviously, big businesses have until now been able to cushion themselves against violent fluctuations by fixing their currency when they do a deal. Small businesses, on the whole, do not do that and in any case from now on any fix is bound to be within a relatively narrow range. One major importer of British consumer goods at the Chamber told me that for the first time he was now having to look at goods sourced other than from the UK and that his imports from the UK were off some 30% already this year. Some of that can, undoubtedly, be attributed to the current retail trade recession in the United States but the exchange rate is undoubtedly a major factor. We need to establish rapidly which industries are likely to be hardest hit by this situation, but I suspect it will be serious in such highly competitive fields as the machine tool industry and engineering. We cannot do anything about the exchange rate but undoubtedly the Posts, the Desk and NAAG will have to reassess where their priorities lie and what industries need most help. I believe exports to North America are in for a rough time.