Compensation Trade

September 25, 19..

Dear Sirs,
    Thank you for your letter dated September 16, 19.. and your sample of the men's poplin shirt, both of which reached us yesterday.
    It is really a pleasure to hear from our old friends with whom we have not exchanged correspondence for many years, and we deem it a good chance to do business with you again.
    The moment your sample reached us, we approached our manufacturers about your enquiry, who informed us that the sewing machines they are using are good enough to sew the shirts you intend to order. However, in order to display their excellent skill, they are making a counter sample, which we will airmail to you within a couple of days. When you see our counter sample, we hope you will be satisfied with the design, material and quality, particularly the stitches sewn with our manufacturers' machines. But should you find the stitches not so desirable as you hope for, please do not hesitate to let us know. We shall consider importing a new type of sewing machine from you under compensation trade arrangements.
    We highly value your enquiry and, with an eye to future cooperation, we have asked our manufacturers to keep their prices as low as possible so as to put this business through as a friendly gesture for a long-term cooperation. Our manufacturers are also interested in this business but state that they find it difficult to work out an exact price before knowing the quantity of your order. Therefore, please inform us of the monthly, quarterly or yearly quantity we may expect from you, as the quantity of your order will be an important factor in pricing.
    With regard to the new type of sewing machine suitable for making poplin shirts, we have not yet decided at present to make purchases but would suggest that you immediately send us catalogues and price lists so that we may consider this matter well in advance. Thus, no time will be wasted if we find such purchases necessary.
    We await your reply with interest and sincerely hope that concrete business can be concluded as soon as possible, for our manufacturers are likely to be heavily committed when the summer season comes.

   Yours sincerely                       
China National Import & Export Corp.    


October 7, 19..

Re: Compensation Trade

Dear Sirs,
    Please accept our thanks for your prompt response to our letter dated September 25 in connection with the above subject. We have also received your counter sample of the men's poplin shirt.
    Having carefully examined the counter sample, we find everything satisfactory except for the stitches, which are not what we expected. We attribute this shortcoming to the old type of sewing machine being used by your manufacturers. We feel sure this problem can easily be solved if a new type of machine is installed.
    As requested, we enclose a catalogue and a price list for Model AS-348 Sewing Machine produced by Messrs. Juki & Co., Hong Kong. They have in stock 91 machines which can be shipped to you promptly. This is the very machine suitable for making our poplin shirts, and the present price is HK$........ each FOB Hong Kong which we can assure you is the lowest obtainable. We wish to mention that we have not added anything to the price of the machine for our profit, and are also prepared to ship the machines to you at cost, with freight for your account. The cost for the 91 machines will be advanced by us and can be repaid by you by installment, plus freight and interest at ... per annum.
    Please cable us as soon as possible if you are interested in these machines, and in the meantime let us have your best offer for the poplin shirts based on our order of 2,000 to 2,500 dozen per month. On receipt of your reply to our offer of the sewing machines and your quotation for the shirts, we shall try our best to conclude the two deals as one package under compensation trade arrangements.
    We thank you in advance for an early reply and assure you of our full cooperation at all times.

   Yours sincerely                       
Renald garland & Company Limited