Smith (56), the golf operations manager at Millbrook, and Palmer (36), the director of golf at The Hills, are tied for 10th after carding 2-under-par rounds yesterday.
The pair are understandably rivals, and were playing on one another's courses yesterday.
Smith, the oldest competitor in the field, is originally from Scotland and played on the European Tour in the early 1990s.
He has worked at Millbrook for about a year and said he was "absolutely delighted'' with his opening round.
Millbrook has a spot designated in the Open for a club professional, and Smith had to dust off the clubs to earn the right to represent the club by beating his fellow professionals.
Minus a couple of senior British Opens five years ago, Smith has barely played golf in recent years.
However, he showed he has still got a solid game yesterday, and is now aiming to make the cut.
"Both of us are very much part-time golfers. If I make the top-30, I will be delighted,'' he said.
"We're both very relieved to have passed the first hurdle and got on the leader board and made our presence felt.''
Palmer, who is originally from Auckland but has been in his role at The Hills since 2008, said he was "pretty happy'' with his round, particularly due to the wind and rain he had to overcome in the morning.
But his spot on the leader board is perhaps not a surprise.
Palmer has made the cut the past three years, and was the equal-leading Kiwi after the first two rounds a year ago.
"The last three years, I've played well at various times. What I want to do is put four good rounds together,'' he said.
While he wants to play well for himself, he said the club's membership was what drove him more than anything.
"I keep thinking what it would be like to walk into the club house having played badly,'' he said.
"So, when I walk in there having played well, they're all so pleased for me and the staff are so excited. It adds a huge amount to the event for the members and the staff if I do happen to play well.''
Palmer said he had always hoped to get Millbrook "out of the way'' with a decent score yesterday, leaving him in a good spot before today's round on his home course.
"I know the place better than anybody, so that probably makes up for anything I lack from a technical aspect,'' he said.
