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1. This is a retrial of the Defendant's counterclaim against the Plaintiff. The Defendant is a manufacturer of fabric and the Plaintiff a fabric purchasing agent for overseas buyers. By a telex dated 26th July 1984 the Plaintiff ordered 300,000 yards of ramie cotton cloth as agent for an American buyer, Santa Cruz Imports Inc. ("Santa Cruz"). This was followed by a written sales contract dated 9 October 1984 for 300,000 yards at the rate of US$2.29 per yard. On the 10th November 1984 the Defenda