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DuPont:Good morning.My name is DuPont,Jean DuPont of the La Salle Engineering Corporation.Here’s my card.

Wu:I’m Wu Qiming.We know you through our e-mail correspondence,Mr.DuPont.I’m glad to meet you.

D:Thank you.I’m glad my name is not new to you.But this is the first time that I have had the pleasure of meeting you in person.

W:We welcome personal contacts.They facilitate the straightening out of problems which crop up in the course of a transaction.

D:That’s why I’ve come to Beijing.I want to discuss with you the mode of payment for the tube mill under negotiation.

W:Well,Mr.DuPont,I trust that your presence will hasten the settlement of payment terms for the machinery we hope to purchase from you.Let me say,we’ll cooperate with you to the fullest extent on the basis of equality and mutual benefit.

D:Thank you for your assurance.I feel sure that if approached in such a spirit,the question of payment can be settled to our mutual satisfaction during the present talks.We assure you that it is our earnest intention to promote technical cooperation between us two countries.Our corporation is ready at all times to give any assistance you may need.

W:Good.You see,Mr.DuPont,the present transaction is the first step in trade between us two corporations.I feel sure more business can be expected if this initial deal works out.

D:Now that the technical problems have been settled,I wish to come back to the mode of payment.But before going into details,I would like to explain to you our financial position.

W:It’s very kind of you,but the name of your firm itself speaks for your financial position.

D:Well,yes,but you know,the process of manufacture of the machinery and its accessories and parts requires as long as five years,and involves a tremendous sum of money.During the process of manufacture,we advance the cost for the main machines we produce,and besides this there are large sums to be paid to our subcontractors for the manufacture of the accessories and parts.

W:But for an enterprise of your size,an order from us will certainly not embarrass you financially.

D:Well,in fact,to honor an order of mammoth size like yours it is beyond our financial capability to make all these advances for such a long period without a packing credit from the National Import and Export Bank,Paris,against your Letter of Credit.That’s why we insisted on payment by L/C payable at sight at the outset of our business negotiation.

W:But we have made it clear at the very beginning of our negotiations that we would adopt the terms of “payment by installments” for our present purchase.

D:Obviously we have to think of some other way to settle the payment problem then.

W:Mr.DuPont,you are doubtless aware that “payment by installments” is one of the terms of payment that has been accepted and very often used by several of our sellers abroad,and our adoption of this system of payment for some specific items of our imports is not in contradiction with the usual practice in international trade.

D:Well,Mr.Wu,let me suggest another proposition.Suppose you apply,through us,to the National Import and Export Bank,Paris,for a long-term credit to cover the full value of the machines you’re going to order from us.I must add that this is merely our suggestion but I would like to hear your opinion of it.

W:That’s one way to solve the payment problem,but we have to make a study of your proposition.Shall we stop here for today and resume our discussion tomorrow morning?

D:Sure.I’ll come again at 9:00 tomorrow morning if it suits you.

W:Yes.See you tomorrow.