Smith:First of all,I would like to thank you for your kind invitation extending to me to visit your beautiful country.I hope my visit will help to promote a friendly relationship between us.

Zhang:We’ve been looking forward to your visit.It is a great pleasure for us to have you as our guest.And it is always more convenient to discuss things face to face.

S:I would like to tell you that my clients are very satisfied with your last delivery of the shoes.The styles and colors are very much to the taste of our market.

Z:We’ve received some similar comments from other Australian firms too.

S:This is just what I want to discuss with you.I understand you are selling the same products to some other Australian importers.This tends to complicate your business.As you know I am experienced in the business of shoe-distribution and enjoy a good business relationship with all the leading wholesalers and retailers in that line.I have a mind to expand this business in the years to come.One of the reasons of my visit here is to sign a sole agency agreement with you on this item for a period of 3 years.As it is to our mutual interest and profit,I am sure you’ll have no objection to it.

Z:We appreciate your good intention and your effort in pushing the sale of our shoes.As you know,the demand for this item in your market is quite substantial.However,according to our track records,the total amount of your order last year was moderate,which does not warrant an agency appointment.Unless you increase the turnover we can hardly appoint you our sole agent.

S:I’ll come to that.My proposal is this:I’ll sell annually traditional Chinese style shoes of all sizes 50,000 pairs within the area of the whole Australian market.We expect a 5%commission,of course.

Z:As far as I remember,we sold about 40,000 pairs last year to you alone.Don’t you think this annual sales volume is rather conservative for a sole agent?

S:Well,I admit I always do business on the safe side.Could you let me have your proposal then?

Z:Let’s put it this way.I propose a sole agency agreement for Chinese style shoes and plastic slippers (excluding children’s) for a duration of 3 years；60,000 pairs are to be sold in the first year,70,000 pairs in the second year,and 80,000 pairs in the third year,and the area is to be within the continent of Australia (excluding any neighboring island),commission rate at 5%.

S:You certainly drive a hard bargain,Mr.Zhang.

Z:On the contrary,Mr.Smith.We value your friendship more than anything else.We both understand Chinese traditional style shoes are very popular in your market on account of their superior quality and competitive price.And with the sole agency in your hand,there will be no direct competition and you could easily grasp the lion’s share of market,which would naturally result in bigger sales.I’m sure you can fulfill the agreement without much difficulty.

S:Well,if you put it this way,it is pointless to haggle any more.OK,I’ll comply with your terms.When shall we sign the contract,Mr.Zhang?

Z:How about tomorrow afternoon?

S:Tomorrow afternoon will be fine.