(1)

Zhao:Welcome to Beijing,Mr.Griffin.

Griffin:Thank you.I’m glad I was able to come.

Z:Did you have a pleasant trip?

G:Not really.We ran into a thunderstorm over Hong Kong,and the airplane was so tossed about that everyone got airsick.

Z:Is that so? I’m sorry to hear that.I hope you had a good rest after that.

G:I had a very restful night.Fairmont Peace Hotel is a nice quiet place.I’m quite myself again.

Z:Shall we take up the tallow business now?

G:That’s fine with me.I’m ready.

Z:In your reply to our enquiry,you clearly stated the reasons why you couldn’t make us a firm offer at the time and suggested a personal talk about this.Will it be possible for you to resume negotiating the deal now?

G:Please accept my apologies for our inability to be more responsive to your enquiry.

Z:That’s all right.Unforeseen circumstances do occur,don’t they?

G:They do.You see,when we received your enquiry,the world market was suffering from a world financial crisis,which made it difficult for us to make a firm offer.Now that is more or less over,at least for the time being.

Z:I presume you know where you stand now.

G:Yes,I feel we’re in a position,hopefully,to take up the business negotiation again.But in those uncertain days about two months ago,most of the exporters at our end didn’t want to commit themselves.US dollar devaluation was imminent,and Pound Sterling was also under heavy pressure.We couldn’t afford to take any chances.

Z:Yes,we understand your position.And I’m glad the situation is taking a turn for the better.

G:Luckily we’ve pulled through this crisis.Now,in order to put our business relations on a solid footing,we have come personally to explain the position.

Z:Good.We look forward to doing business with you in the years to come.

G:Me,too.However,the tallow market has been quite strong for sometime and the prevailing price in the Australian market is around US $ 303/mt for bulk tallow.

Z:Oh,Mr.Griffin,as a state-owned enterprise handling the import of tallow,I’m sure you expect us to do some investigation into prices before making an enquiry.Your price is quite unreasonable.Well,I’m sorry to say that we find it quite unacceptable.

G:Could you give me an indication as to a price which you consider workable?

Z:I suggest that you reconsider your price once more,and bring it into line with the international market price.

G:Well,I’d be glad to hear what price you have in mind.

Z:I can only say that the prices from other sources are much lower than yours and that their quality of tallow is very good.

G:Mr.Zhao,let’s be frank.This is not the first time we’ve done business together.We’ve always been straight and fair with each other.There’s nothing serious to complain about.But the currency fluctuations could be responsible for some of our difficulties in pricing.We really have been put in an awkward position because of this.

Z:Yes,it’s good that our past record has always been satisfactory.Still,I’m afraid you’ll lose out if you don’t fall into line with the prices of others.

G:I think I should explain briefly.The rate of inflation around the world is from 3%-9%while the rise in price for tallow is only 5% compared with our last transaction.The seeming 15% rise in our offer is caused by the precipitous slide of the dollar.In other words,it’s the rate of exchange of foreign currency that makes our price seem so unfavorable.I think you should realize that.

Z:Indeed we do.But you should not neglect the advantage you enjoy in the cost of production.After all,we’re quite prepared to come to terms with you if your price is reasonable.Think it over,Mr.Griffin.

G:Well,I shall need more time as I have to contact my head office.

Z:That’s fine.Could you let us know as soon as you hear from them?

G:Certainly,I will.