Inr hudson london

CLAIMS IN CONNECTION WITH LATE DELIVERY, NON­DELIVERY OF THE GOODS AND DELAY IN PAYMENT

Telex f)

to: mr petrov technointorg, moscow

from: mr nasser sales manager, technical equipment, egypt

date: febr 10

417

¹ -336

we regret to inform you that the first consignment of 200 freezers cap 180 fm against contract no 24/6-115 A of dec 15 last year has delayed, since the delay exceeds four weeks we are entitled to к penalty of $ 900 for delay in delivery in accordance with clause 8 of Hip above contract, best rgds nasser, egypt

Letter g)

Mr Nasser, Moscow, 20th Febr, 199..

Sales Manager,

Technical Equipment Co. Ltd,

CAIRO,

Egypt.

Dear Sir,

Abt: Contract No. 24/5-115 A of 15th Dec last year

We have received your telex of 10th Fedr from which we are sur prised to learn that you are making a claim for $ 900 on us for the delay in delivery of freezers Snow Cap 180 FM ordered from us againist Contract No 24/5-115 A of the 15th December last year.

We have carefully considered your claim ana have to point out that the delay in delivery occurred through no fault of ours. You will remember ' that Clause 7 of the above contract provides for the shipment of the freezers within a wefek of your opening in our favour an irrevocable confirmed Letter of Credit with the Moscow Narodny Bank, Cairo for the full value of the consignment. You undertook to open the L/C by the 15th January, but actually you only opened it on the 5th February, i.e. with a delay of 20 days after a number of our telexes, the last of which warning you that unless you did it urgently, we should have to cancel the Contract.

Thus the delay in delivery was caused by your infringing the tenrm of payment, so you have no right to hold us responsible for it and to claim any penalty from us.

In view of the above we decline your claim as utterly unjustified and expect your early reply.

Yours faithfully,

A.Petrow

V/O Technointorg

Note on the text.

1. You will remember - вы очевидно, помните

"Will" употребляется в высказываниях, относящихся к нас тоящему времени, для обозначения вероятности, воз­можности.

Letter h)

Moscow, 13th March, 199..

Mr Nasser, Sales Manager, Technical Equipment Co. Ltd, Cairo Egypt.

418

Abt: Contract No 24/6-115 В

As a result of an exchange of telexes between us you undertook to send by the 1st March to Odessa a vessel to load the last lot of refrigeratos.

In spite of the fact that 13 days have passed, no vessel has arrived at the port of loading.

Moreover, you haven't informed us yet about the sailing,date of a a vessel from Port Said.

We would like to draw your attention to the fact the unfortunate and disappointing delay in your placing a vessel under loading does not allow us to fulfil the contract in the time stipulated and involves great and unnecessary at that storage expenses.

In view of the above and unless we receive from you within 3 days a notification that the vessel required has sailed off to Odessa, we shall consider ourselves free from any obligations under the above contract and try to ship the goods elsewhere by our own vessel bound for Africa.

All extra expenses and losses sustained because of your failure will be charged to your account.

We hope you understand the seriousness of the situation and take the appropriate urgent steps not to lose the contract and to enable us to complete its fulfilment.

We expect your telex soon.

Yours faithfully, A. Petrov V/O Technointorg

letter i)

Further to our telex No 1775 dated 12th March we would like to iay again that you very well know that the time of delivery of the equipment under Contract No 46/385 is approaching and in accordance with Art. 7 of the above contract you are to let us know a fortnight before the equipment is ready for inspection. To say nothing that you promised to keep us informed about the position of the order in itcneral.

We are planning to send our inspectors to your works in time to examine the equipment and take part in its tests. To install the equipment and put it into operation in time we want our inspectors to tee the final stages of its production. Any defects which may be detected in workmanship or design could be remedied at once and the delivery schedule observed. Also, the information about an approximate date of readiness of the equipment for shipment is required for us to be able to obtain an import licence, which the Trade Ministry promised to issue without delay.

We await your prompt reply.

Yours faithfully,

419

Telex j.

it is the first of august already, we should have shipped the second lot against order no 33/0275 early last month, but unfortunat payment of the second instalment is long overdue, and unless you tf urgent steps to remedy the situation and accelerate payment, we st have to suspend the fulfilment of the contract altogether and sell goods elsewhere.

pls inform us by tlx of the measures taken, regards

TEXT 16 B. TRADE IN SERVICES

Trade in services is now an important element of world economic ties. The major exporters and importers of services are the USA ami Great Britain, Japan and Germany, France and Italy. Its volume has greatly increased recently. The UK, for example, gains half of its overseas earnings from its service industries.

There are new services associated with the rapid development of telecommunication facilities and computer equipment and traditional ones. They cover transport and tourism, catering and hotel facilities. banking, finance and insurance, science, education and personel training, trade warehousing and communications. Services may be engineering-and-consulting, information-and-computer, data-

processing, advertising, legal, stock exchange and intermediary. leasing, market research and quality control, after-sales and technical maintenance.

Numerous modern services are also related to the export of scien tific, technical and production experiences (know-how, patents and licences).

Such services as training of foreign students and the activity of international organizations on the territory of the country may bring it good earnings too, for example, these services bring the USA the world's largest revenues.

The growing diversification of services rendered by American corporations resulted in their beginning to offer entire packages of services, e.g. a single complex of financial services includes banking, insurance, stock exchange and intermediary services, another complex combines transportation, information, financial, marketing and other services.

On the other hand, this diversification leads to the fact that each engineering export firm specializes in just a few economic sectors to make its services competitive, for example, pre-investment services those linked with the design and construction of projects, special services and consultations - modernization, control systems, computers, market research, cartography and many others.

To by-pass the existing restrictions in certain developed and developing countries for trade in services, American transnational corporations have been setting up their own local network of services throughout the whole world.

The share of East European countries in the world export of services is rather small - less than 10 per cent, and to improve their participation in the international division of labour it should be

420

increased. They can develop international tourism and such field as transportation services (by providing transit shipments), engineering-and-consulting services (by stipulating them in contracts for construction work), licences, leasing, health and education services and so on.

Trade in services has somehow been underestimated in our coun-try, and their imports have not been looked upon as beneficial to our national economy. But if Japan's experience is taken into account, its importance becomes quite evident. The same refers to their exports. For that reason the volume of exports of services from the Soviet Union is negligible. That can also be explained by the narrow range of these services and lack of experience in carrying out independent operations in this area on the world market.

Prospects of world trade in services are promising. The demand for modem services is particularly great and is still growing rapidly. In the future there will be much joint activity in the fields of management konsultancy, advertising, banking, accountancy, marketing, insurance ttnd engineering consultancies, hotel and catering industries.

So to promote the service sector in our foreign trade Soviet associations should seriously consider setting up joint ventures and mixed companies British overseas investments are second to those of the US, so potentially the UK has the experience and capital to become a participant in this kind of activity to say nothing about Japan, Germany and Italy. Certain steps have been taken. Thus in the late 1980s the British-Soviet Chamber of Commerce with the USSR Chamber of Commerce and Industry and Vnesheconombank organized a round table meeting to study the bossibilities of future cooperation in various services: banking for one. Besides British industry has had to undergo a sweeping and urgent modernization programme in order to remain competitive in world markets. It has experience of cost effective I tip-grading the output of existing factories in the iron and steel and chemical industries and may share its experience in managing this kind of programme.

Many representatives of business quarters from other advanced i.ipitalist countries visit the Soviet Union to see our restructuring with ihcir own eyes and offer their participation in joint ventures in the field nf services as well to the mutual benefit, but we are very slow in making up our minds.

It is obvious that promotion of Soviet engineering-and-consulting operations and other services on the world market would increase the country's currency earnings, broaden its foreign economic ties and expand exports of machines, equipment and complete plants.

AN OFFER OF SERVICES (a circular letter)

October 30, 199..

Dear Sir:

A complimentary copy of INTERNATIONAL REPORTS was sent to

vou recently containing information concerning foreign exchange,

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monetary trends, financial markets & investments abroad and foreign trade financing which we believe was of interest to you.

Constantly changing international conditions have made it more dif ficult than ever to obtain accurate information and advice on financial situations which may affect the various markets.

The worfd's leading commercial and financial organizations use our services land consult us daily, because of our record of accurately anticipating changing monetary values, and our intimate knowledge off financial markets and official policies. Our international organization combines the efforts and thinking of the leading monetary, financial and commercial experts all over the world.

The contents of our service, continually expanded and improved, cen­ter ' on new developments in international finance, guidance on hedging in foreign currencies, the use of preferential or advantageous foreign payments or financing opportunities, adjustments of foreign financial commitments in view of new currency risks and opportunities for foreign investment 6r transaction without undue risks.

We are enclosing a subscription form for your convenience and we look forward to welcoming you as one of our subscribers.

Sincerely yours,

INTERNATIONAL REPORTS INC.

Robert Murrov, Business Manager

Enc: subscription forms (2)

Note on the text.

¹ center, theater. This is the American way of writing these words, th*

corresponding British spelling is 'centre', 'theatre', etc.