W: Still, there will be bank charges in connection with the credit. It would help me greatly if you would accept D/A or D/P. You can draw on me just as if there were a letter of credit. It makes no great differenceyou, but it doesme.
B: Well, Mrs. Wang, you must be aware that an irrevocable letter of cred it gives the exporter the additional protection of the bank er’s guarantee. We always require L/C for our exports. And the other way round, we pay by L/C for our imports.
W: To meet you half way, what do you say if 50% by L/C and the balance by D/P?
B: I’m very sorry, Mrs. Wang. But I’m afraidca promise you even that. As I’ve said, we require payment by L/C.
A: Well, Mr. Brown, we’ve settled everything in connection with this transaction except the question of payment in yen. Now can you explainme howmake payment in yen?
B: Many of our business friends in England, France, Switzerland, Italy and Germany are paying for our exports in Japan currency. Itquite easydo so.
A:know some of them are doing that. But thisnewme. I’ve never made payment in yen before. Itconvenientmake pay- ment in pound sterling, butmay have some difficulty in making payment in yen.
B: Many banks in Europe now carry accounts in yen. They are in a positionopen letters of credit and effect payment in yen. Con- sult your banks and you’ll see that they are readyoffer you this service.
A: Do you meansay thatcan open a letter of credit in yen with a bank in London or Bonn?
B: Sure you can. Several of the banks in London, such as the National Westminster Bank and Barclays Bank are in a positionopen letters of credit in yen. They’ll do so against our sales confirmation or contract.
W: Very good. Well, thanksyour cooperation, our discussion has been very pleasant and fruitful.sincerely hope that the volume of trade between us will be even greater in the future.
B: By the way, Mrs. Wang, we have a minddo joint participa- tion with you on Japanese arts and crafts in our market. Would you entertain this proposal?
W: Well, thissomething new. A few of our friends from Europe have also suggested that we participate in joint enterprise with them dealing in some of our goods. We think there are a lot of detailsgo into.
B: If you feel our proposalattractive, itestimated that businessthe extent of over twenty million marks can be done in this manner.
W: Naturally,appreciate your efforts in pushing the sale of
Japanese arts and crafts. But I’m not in a positiondiscuss your proposal today.must first talkour director, and discuss it with you some other time.
B: All right. Anyway, I’ll be staying here for another two weeks. But I’m looking forwardhaving something done in this respect.
W: We’ll talk about it next time. Now that everythingsettled, let’s have a cup of tea, and take our minds off business for a change.