Mr . Brown , I'd like to talk with you about something that is getting to be a problem . I'd like , if possible , to see it settled at this meeting .   What is it , Mrs . Wang ?   It's about the quality of 300 cartons of dried mushrooms . They reached us two weeks ago , and were immediately examined after they arrived . To our astonishment , about 20 % of them were moldy and in many cartons there were even small brownish bugs crawling in and out of the half eaten mushrooms . We can't accept them in this state . They are unfit for human consumption . And the Medical Officer of Health has issued a Stop Notice on them .   Is that so ? So far we haven't had any complaint of this kind . Our mushrooms have enjoyed a good reputation for their superior quality for years . We are really at a loss to understand why your lot was found moldy and wormeaten . Have you any evidence ?   Certainly . Here's a survey report by a well-known lab in London , whose testimony is absolutely reliable .   Though everything may be as you say , there are many factors involved . What's more , your surveyors have not mentioned any cause for the damage .   The mushrooms were packed in small one pound plastic bags , sixty of these bags to a carton . It is stated on the surveyor ? s report that external conditions of goods at the time of survey are all sound and intact . So it is obvious the cause of the damage is that the mushrooms were not completely dried before packing .   As you know , before shipment , the Commodity InspectionBureau inspected the goods in question . They concluded that the goods were well dehydrated from fresh and choice material and up to standard for export .   I think the Inspection Bureau at your end , when effecting inspection , only selected a few package at random these happened to be up to the standard . The part that was not dried properly , most probably , escaped their attention . As the amount in question is only 20 % of the whole shipment , I think it is only reasonable that you should compensate us for the loss .   The inspection certificate , which is based on a random selection of 20 % of the consignment as we've agreed on beforehand , is considered final and binding upon both parties . We do not accept any claims for compensation for loss incurred in transit , because you bought the goods F . O . B . Houston and on shipping quality , not on landed quality . Your claim , in our opinion , should be referred to the insurance company , as the mishap occurred after shipment .   We've already got in touch with the underwriter . But they have refused to accept any liability . They attributed the accident to the effects of dampness during the long sea voyage .   That's a matter over which we could exercise no control , then . I'm afraid I have to insist that you approach the insurance company for settlement , that is , if you have covered this risk in your coverage .   To my regret , we failed to cover contamination . This is an unfortunate oversight on our part and a lesson to us . 