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1、Passage3Yesterdaywewentthroughthemainpontsoftheproposaljointventure.Nowyouhaveseenthefactory.Shallwediscusstechnologytransferbriefly?Ah,I'mjustcomingtothat.Ifyouwanttheproductstocompetesuccessfullyontheinternationalmarket,you'llhavetoacquireadvancedtechnology.Certa
2、inly,thetechnologytobeimportedshouldbeadvancedandappropriatetoChina'sneeds.Excuseme,Mr.Zhao,whenyousayimportedtechnology,whatdoestheword"technology"referto?Naturallyitdoesn'tmerelyrefertoindustrialproperty.Know-howisalsoincluded.Weagree,buttheknow-howwepromisetotra
3、nsfertothejointventurecompanyiswhatweareadoptinginourproductionatthemoment,andyou'llpayforitintheformofroyaltiesapartfromacertaininitialdownpayment,right?Yes,andatthesametimewealsoexpectthatinthedurationofthejointventure,youcancontinueofferingusyourimprovedtechnolo
4、gicalexpertise.Astothepriceoftechnology,theminimumgenerallyacceptedis5%ofthesalespriceofalllicenseditemsmadeandsoldduringthetermoftheagreement,inadditiontoaninitialdownpaymentofUSD100,000.I'mafraidboththeroyaltyrateandtheinitialdownpaymentamountaretoohigh.I'msureyo
5、ucanunderstandthatthecompanywillhaveatoughtimeintheinitialstagesofcooperation----lowyield,possiblyunstablequality,highexpenses.Howcouldthejointventurebearsuchaheavyadditionalloadeachyear?Thiswouldcertainlybreakthebackofthecompany.Theinitialdownpaymentcannotbereduce
6、d,butwemayconsiderloweringtheroyaltyrateabitlittle.Inaddition,eventhesumofUSD100,000hardlycoversalltheexpensesspentontechnologicalinformation,drawings,personneltraining,etc;nottomentionthetravellingexpenseswe'llhavetopayforthisjoboftechnologytransfer.Well,itcouldwo
7、rkifthefirsttwoyearsofproductionwereexemptfromroyaltyandiftheratecamedownto3%ofthenetsalesprice.Howlongwillthetermofagreementbe?Generallynotlongerthan10years.Wewillacceptyourproposaltobeginroyaltypaymentsinthethirdproductionyeartoshowthatwewanttocooperate."Torender
8、goodforgood",astheChinesesayinggoes,weagreetotheamountofUSD100,000astheinitialdownpayment.That'sasignofoursinceredesiretoventurejointly.Andwhatdo
